When you are building or undertaking major renovations on a home the dollars add up quickly. Often you can’t even account for where it all went! Just as you are nearing the finish line, you realise that the expenses are now turning for roll call! Constructing a new dream home is meant to be an enjoyable and satisfying experience, but for many, it is a nightmare. It doesn’t have to be.
The most important part of undertaking any project is research and information. Construction projects are no exemption. Having a keen sense of knowledge before you tear into any of the walls could help to ease many anxieties that will threaten your satisfaction of having a new dream home. As long as you can anticipate the major expenses and then the incidentals, maybe requests for additional investment will not become burdensome.
Create a plan for your project and, where possible, stick to it for the initial phases. Even if this only saves you a few 1% to 2% of your expenses, that small dollar figure may provide a sensible buffer, just when you were about to run out before you instituted the plan.
Here are the estimated top expenses for Home Construction from the lowest to highest:
Landscaping, the deck, driveway, clean-up and other little costs add up and can cost an easy 8% of your total building costs. Bear this in mind, even when selecting foliage and plants for your home. Why not carve out a space for growing your own herb and vegetables, to help you benefit from some of that money spent. If it is going to grow, it might as well be saving or making you money
Government fees, administration, taxes and paperwork can add up. Try your best to calculate these costs in order to keep them down.
You may have to dig deeper or cut through rock and all of that takes time and time is money.
- Major System rough-ins installation
Plumbing and electrical installation, without the fixtures, can be costlier than anticipated.
- Exterior finishes
Windows, doors, paint and roofing. You will want the best, and when the best isn’t available, even the basics come at a high price.
Steel, rebars, timber framing, roof framing, sheathing and trusses are very expensive but required to keep the structure of your home intact.
- Interior finishes
The most underestimated cost is what causes many projects to be stalled. Plastering interior walls, wood, tile, laminate or stone flooring; backsplashes, carpeting, furniture and cupboards, sinks and lighting fixtures complete a home and many homes are never completed due to the disparity between their vision and their cash.
Other costs not usually considered in construction include transportation, electricity, water, storage and diesel. Imagine the amount of fuel that needs to go in to all of the equipment on site and the water used to mix mortar.
The cost of labour and land, building practices, and the cost of materials can vary from place to place and depend on the nature of the particular home to be built. Although cost estimators can provide a broad idea of construction costs for an average home, they are not perfect tools for estimating these costs.
These costs did not include the cost of land or the costs to prepare for sale, which can also add up to significant amounts.
It is recommended to hire a building contractor for full and detailed cost breakdowns.