Everyone knows that building a house costs a lot of money. However, it is almost impossible to determine the exact price from the beginning of the search for a suitable plot of land to the approval decision. To help you estimate in advance how much it will cost you to build your home, we'll give you some advice on how to budget for building a house.
A number of factors will influence the size of the budget. If you know them, you can start saving money at the beginning when building your house.
Prepare a budget for the construction of the house on an item-by-item basis.
Start with the price of the land. Add to this the land registry fees and the real estate company or lawyer's fee for preparing the contract. If there are no utilities on the land, add the cost of making them.
Choose a designer or catalogue house project. Find out in advance what is included in the project. It should contain three pars for the processing of the building permit and two pars that are used for construction. Choose a house project with an orientation that will save you on heating costs later.
The price will depend on the chosen method of construction (self-help or construction company) and the selected materials. It is certainly not worth saving on quality. However, there is also a difference in price between materials with comparable properties. For example, you can use high-quality aerated concrete instead of bricks for the walls of your house.
If you decide to build through a construction company, ask them to prepare a detailed quotation. This should be part of the contract for the work. This will prevent unexpected increases in your costs. If you don't have a project yet and need a rough estimate, check with reputable builders in your area for an approximate price per 1 m2 in standard design.
It is more difficult to estimate the final amount when building on your own. You will also not be able to be sure that the amount will not increase in the end. You will also have to factor in the cost of materials and tradesmen or companies who will carry out the work that you won't be able to do yourself.
Don't forget about the fees for the building permit and approval. If you are building on your own, you will also need a qualified building supervisor. An independent building supervisor is also recommended for quality control of the work done by the building company.
The basic interior furnishings are often forgotten in the design budget. You will need to have a finished kitchen at the time of the housewarming. In addition, you will certainly need other basic furniture or appliances.
When building a house, it is necessary to allow for a reserve. Make a reserve of 10 – 15 % of the planned final price of the house. Only then should you arrange a mortgage. It is better to use the money you have saved as an extra loan repayment than to miss it later.