Have you allowed for all the costs of your new home build? Part 1

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Frequently costs of building a new house or renovating your home aren’t considered, or are overlooked, which could result in your budget for your home project being too low.
Costs for your construction project could include:

• Design fees for engineers and architects.
• Project management costs if you appoint a project manager to manage the process. 
• Land purchases, including duties and taxes.
• Property rates and taxes.
• Costs of maintain the property before construction begins, including, security, utility bills and keeping the property tidy.
• Construction costs.
• Protecting existing structures and facilities which could be damaged by the construction work.
• Modifications to areas of an existing house which are impacted by the construction work. Often existing floor and wall finishes have to be changed in the existing building to match those that are installed in the new areas.
• Upgrading existing buildings which are being added to or changed. This could include requirements to improve the plumbing pipes and electrical wiring and distribution boards to bring them up to code and standard, or to allow capacity for the additional expansion. It may also include installing additional structural supports and beams to the existing structure. 
• Demolition of existing structures and site clearing.
• Clearing existing trees and other vegetation where necessary.
• Levelling the site where required. 
• Constructing ground retaining walls where required. 
• Specialist foundations if required.
• Additional insurances.
• When you have to move out of the house while the construction is in progress, then the cost of temporary accommodation during construction.
• Interest on finance loans.
• Security during construction.
• Fencing during construction.
• Permanent fences, walls and gates on the property boundary.
• Temporary construction sheds and toilets.
• The provision of water and electricity for the construction works.
• The provision of water, sewer, gas, telephone and electrical connections to the new house. These include connection fees and deposits for the utility provider, or the local council. The deposit could be equivalent to one or two months usage. Although this deposit is refundable it’s an immediate expense that must be allowed.
• The cost of permits, plan approvals and building approvals by the local authorities, and when the property is within an estate then the body overseeing the running of the estate.
• See Part 2 for more costs to consider and include in your budget.

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Conclusion
Not allowing for some costs in your budget will inevitably mean that your home building project goes over budget, which could lead to financial stress and even there not being enough money to complete your project. It's vital to ensure you've allowed for all costs.

For more valuable home building and renovation tips and advice read: 'An Introduction to Building and Renovating Houses - Volume 1 Hiring Contractors, Managing Construction and Finishing Your Home' and 'Volume 2 Finding Your Ideal Property and Designing Your Dream Home'

​This is an extract from: 'An Introduction to Building and Renovating Houses Volume 1 and 2' by Paul Netscher. Available in paper or eBook from Amazon.com, Amazon UK, Amazon CA, Amazon AU and all online bookstores. To read more

​© 2018 This article is not to be reproduced for commercial purposes without written permission from the author.

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