What are the Costs that Go into Building a Home?
Building your own home is an amazing experience and allows you to live out all the dreams you have had about your perfect home. You get to pick out all the materials, the styles, and the ideal location. You even get to be a part of the whole building process, which can help you feel more connected to your home and be as comfortable as you can in your new space.
However, building a home is a huge expense. There are many costs that go into building a home from scratch, including some that you may not even have thought of. We’ll give you an overview of all the costs you need to consider and put into your budget, from which locations cost the most, the different types of houses you can build, and a breakdown of the costs involved in different parts of the house.
Finding the Right Team
The first thing you need to do is find the right team for your project. You’ll begin by finding a real estate agent who can give you advice on the best location and type of house that would suit you best. Then you need to find a suitable construction team.
Before you pick a construction team, you should look at the previous projects they have worked on and gauge the quality of their work. You should look at their reviews thoroughly. The quality of your team will ultimately dictate the quality of your home.
The next thing you need to do is get quotations from different construction teams. Pick the best team that will charge you the least. The construction head will then be able to give you the latest costs of all the building materials you’ll need as well.
Picking out the Type of House
The type of house you want to build also plays a huge role in determining the final cost of your home. The bigger your house is the more your costs go up. An average 1000 square foot home would cost approximately $200,000, while a 2500 square foot home would cost upwards of $450,000.
Other than square footage, your costs will also change depending on the number of rooms you want, how many bathrooms you will have, the size of the kitchen, any additional rooms, outdoor areas, and so on. A home-theatre, a pool, and walk-in closets will drive the cost of a home up by a lot, so choose wisely.
The State You Pick to Build your House In
The state that you are living in will be one of the biggest cost factors to consider. An average-sized house in one state can cost you the same as a very elaborate house in another. The Northwest Territories are the most expensive states to build a house in. An average house could cost you upwards of $350,000. New South Wales, the Australian Capital Territory, Victoria, and Queensland are the next most expensive states. One of the cheapest states to build a home in is South Australia, with an average house costing $220,000.
Breaking Down the Costs Involved in Building a Home
Different parts of the house will cost you different amounts of money. Fixtures and finishes can sometimes cost the most, whereas the foundation and roofing don’t cost as much as you may have thought.
The foundation is the ground on which your home is built. Usually, the land will have to be dug up, plumbing and electrical will be laid down, and then the foundation will be set up. If you want to have a basement, the foundation will cost you a lot more than if you were building on ground level. An estimated average cost to install a foundation is $8000.
The framework involves putting up the barebones of the house in the layout that you want. Framing is usually done with wood, which is a generally more expensive material. Framing can cost an average of anywhere from $20,000 to $ 50,000.
Depending on the style of your roof and how elaborate you want to go with materials used and features, a roof can cost you anywhere between $8000 to $15,000. If you want to add a sunroof feature or maybe some solar panels, be prepared to add another few thousand dollars to the roofing budget.
Insulation is absolutely important when building a home, especially if you live in Australia, with vastly different climates at different times of the year. You want to make sure your house is livable in the middle of summer as well as in the wintertime. Insulation can cost around $5000.
A fridge, a dishwasher, a laundry machine, air conditioners, and TVs will all add up to your final house costs.
Plumbing and Electric
Plumbing, electric, gas supply, HVAC, and other key systems cost the most. You can easily spend up to $100,000 on this.
Paint and Fixtures
Wall paint, hardwood flooring, kitchen counters, bathroom tiles, and a million other fixtures in the house are the biggest expense you should expect. Fixtures can cost an average of anywhere from $50,000 to $200,000
Development permits can also be a pretty high cost! You can expect to pay around $100,000 on regulation and development permits.
Our Final Thoughts
So, this was our comprehensive overview of all the costs that go into building a home. It may be much cheaper to rent or buy a house that has already been built, but if you want your dream house, the best option for you is to build it yourself.
Make sure to get in touch with a great real estate agent and a construction team so that you can start to make a true budget of the different costs that will go into building your home. It is important to have a detailed budget that will take into account every little cost so that some unexpected costs don’t creep up on you. Good luck on starting out the process of building a home!