When you’re looking to build a house, the cost is usually one of the major concerns. Everybody will have a certain budget or certain amounts they can seek mortgage approval for. That’s why understanding all of your costs upfront is crucial to a successful home build. Obviously, there are many factors that affect the building cost, and that’s why you should always work with reliable, reputable builders. Not many people are home-building experts, so you’ll need some help being guided through the process, especially when it comes to budgeting.
Here’s everything you need to know about how much it costs to build a house.
The Importance of Budgeting
Budgeting is obviously a key component of building a house. Banks and lenders will often only approve people for a certain amount, so if you are under budget, it can cause a lot of difficulties. Even if you could potentially borrow more, you may not want to. Many people like to formulate a budget and stick to it.
Remember, making payments on your mortgage is a long-term prospect, so borrowing more than you can realistically handle is a recipe for disaster. Interest rates can change, meaning your monthly repayments can increase or decrease over time. So, when budgeting for a house builds, you want the best information possible from the word go.
Most home builds have a square meterage rate attached to them. This is seldom a figure that stays the same for too long, as it moves with market value. In the same way, existing house purchase prices will shift with the market, so do square meterage build rates.
However, once a builder gives you a square meterage rate, and you’ve got your building plans with the house size, you’ve got your cost estimate. As we’ll discuss though, while size matters for house cost, this doesn’t always tell the whole picture.
The Cost Estimates
Cost estimates based on a square meterage rate reflect only basic inclusions. These are usually the standard recommended inclusions offered by a building company. When we talk about inclusions, we mean practically every aspect of the home design. From door handles to roofing materials. White goods and window furnishings.
So, while you may look at a square meterage rate and think it suits your budget, the total price can look very different if you want to upgrade several aspects of your home.
What Affects the Building Cost?
Building cost is essentially affected by two things. As discussed, the market rate dictates your square meterage costs. Therefore, the size of the residence is a big contributing factor to cost. The other is your inclusions.
As we mentioned above, your desired inclusions can play a big part in the final cost estimates, so while it feels pedantic, you need to decide on everything while planning. From your tap fittings and light fixtures to your benchtop materials, you can only budget properly if you get all the information.
Getting Accurate Cost Estimates
When building, you should always have the opportunity to choose all of your inclusions early on, and be given an accurate cost estimate based on this. Here at Stonewood Homes, we transparently and honestly provide you with all of your costs. Any additions or subtractions based on your site specifications are clearly provided, giving you the best chance to budget accordingly. If you’d like to find out more, contact us at Stonewood today!