Thinking of building your new home? How to avoid the unnecessary extra cost

Building a new home is a big decision and an exciting experience. However, it requires careful planning and budgeting. There are lots of factors to take in and absorb, especially if it’s your first time building. We have compiled a rough guide to lead you through the process of homebuilding. Some tips, advice, referrals and cost-related components will be highlighted below with the hope of giving you clear ideas of what building a new home is about.

Budget when building a new home

Budgeting is the key. Before going ahead and make that final decision, you’d need to lay out all the costs associated and evaluate your financial capability. Building a new home is not a walk in the park. The process can be complicated. There are 2 ways to build your new home:

The first is by going through a reputable builder in the industry.

These include companies like Masterton, Eden Brae, Mcdonald jones Homes, and Metricon. Visit display home centres like HOMEWORLD to check out the styles of home you’d like to build, keeping in mind an approximate figure you’d like to spend.

The second method is building the home yourself-Owner Builder.

This requires much more experience, financial back up and of course an owner-builder- permit to supervise building your own residential home.
When budgeting, remember to keep in mind other costs related while building such as rental expenses and skip bins hire in Sydney to clear out your building wastes, garden soils for landscaping, etc.

Building with a building company and cost

Once you have visited the display home centres and select the home style/ builder which you love. It’s time to sit down and carefully list down the cost. Budget this using figures rounding to the whole amount. Talk to your builder about getting an initial tender. The list of costs includes:

Demolition cost of your existing home and clearing of the land applies when you purchased a block of land with an existing home on it (demolition + disconnection fee for electricity or gas). It also includes clearing of trees, or getting skip bins for the removal rubbish/ debris on your land, getting ready to build.

The tender from your building company will include: your home Base Price + Site Cost + BASIX + council lodgement + any extra features you’ve discussed including the façade selection of your home (if you are not selecting the standard), higher ceiling + any special upgrade package from the builder which you have selected to improve the quality of your home.
If there are any structural changes need to be done, it’s best to decide now and leave it to your builder. Get them to add the cost to your initial tender. Use your negotiating skills to lower the cost. Do your homework by obtaining different quotes and present to your builder to get the best they can offer.

Some home builders can allow you to do some of the work yourself or seek outside contractors. Items such as main flooring (excluding wet areas like bathroom and laundry), blind, extra lightings can be done by the owner after the builder’s hand over the key. Don’t be afraid to shop around and get a few quotes for the above items then compare. You will surely find some savings here if you seek for outside contractors. Don’t forget to get quotes for items such as the driveway, turf, and landscaping. In NSW, councils require new home building owners to complete the outside landscaping before issuing the Occupancy Certificate-OC (which allows people to officially occupy the new home). Please remember to seek approval for your OC within a few months of moving in as councils may not approve if you’ve completed building your property for more than 12 months.

Extra upgrades – After the initial tender is issued and you have entered into the building contract with your builder. Then, the next stage is the colour selection process. This is to choose the colour and items in your home. Keep a budget in mind when doing this. Don’t go wild as you might be very tempted and hence, will easily break your budget.
When budgeting for building your new home, always reserve extra for any unforeseen circumstances. This includes any changes required by your local council and Sydney water, extra peering cost due to poor soil condition, handling fee and admin fee for change of mind, etc.

Owner Builder

Some people choose to build their own homes as this can provide substantial savings if you know what you are doing. Also, as an owner-builder, you’ve got to make sure you’re good at management and budgeting otherwise you’ll soon find yourself out of the fund or put yourself and the family through a lot of stress.

To begin your owner building experience, you’ll have to get an owner-builder permit. Information for NSW owner-builder permit and application can be found via Service NSW. When building your own home, keep in mind the following tips:

1) Be very organised and keep to your budgeting.

2) Get a costing plan for your dwelling. Always shop around, get at least 3 quotes for all the associated works and compare.

3) Don’t forget to counter for extra costs such as rubbish removal, skip bin hire or cleaning expenses.

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