How to avoid hidden costs
Building your new dream home is an exciting and emotional experience. Unfortunately with all of the promotions and offers, new products, varied specifications and so on it can be hard to determine any hidden costs which can drive every new home builders fear of going over budget.
Knowing exactly what you are paying for will help to reduce this fear. That’s why we have put together some hidden costs to look for below before signing your contract and how to avoid them.
Determine the total cost of your new home build
So you have the advertised cost of the home you want but you’re not quite sure exactly what version of the design you are getting? More often than not the base price is advertised however the photo of the home depicts the ‘upgrade version’. Make sure you know what design you are paying for and what it will actually look like. Think about what you want included in your new home and have a chat with your builder to see if any of it will be at additional cost. Have a look at the following list and ask your builder if it is included in your quoted price:
- Floor Finishes (e.g. carpet, tiles or flooring)
- Internal Painting
- Window Treatments
- Heating and Cooling
- Kitchen cabinets, bench tops, sinks and appliances – check your specification guide
- Fencing, driveways and landscaping
Building Permits and Approvals
As the homeowner it is your responsibility to obtain some of the permits prior to building. You can choose to nominate your builder to act as your agent in obtaining these permits on your behalf. The cost of the permit will depend on the proposed build and its level of complexity. Prices may vary depending on councils and surveyors.
Planning permits are legal documents giving permission for land to be used for development purposes, but they’ll also cover elements like aesthetics and boundary regulations. Planning controls regulate the use and siting of buildings, as well as their appearance.
A building permit is written approval from a registered building surveyor that your building project, home alteration, demolition, repair or removal is ready to commence. It indicates that your plans and specifications comply with council or safety regulations, and allows building work to start.
Make sure you assess the different home loan packages and what they have to offer before locking in with any. Some home loans will offer no application fees or lower interest rates.
Know your Government fees and stamp duty
When building a home, you’ll only pay stamp duty on the land, which means it’ll be considerably less than what you’d pay on an established house – and ultimately mean a huge saving on your final cost.
Whether you have valuable friends and family helping you to move in or make use of a moving company, there will be fees involved with truck hire and so forth. Make sure you include this in your budget to avoid any last minute setbacks!