There are numerous fees and charges that might not be calculated or included in your main budget when you plan to build a house, stated by a Custom Home Builders Mornington Peninsula. Building a house could be less expensive than buying one as long as you try to plan ahead for these hidden costs.
Here is a list of the hidden cost you need to consider when building a house
1. The extra fee of conducting a contour survey and soil tests
Before you can start erecting a building, a building company would have to conduct a soil test and contour survey which will attract an extra fee.
Surveyors will visit the site so as to carry out the necessary tests. Soils that are of poor quality will attract fee that could go as high as $2000.
2. Hidden fee that would emanate from Site costs
Site costs depend on the results of your soil and contour survey. The site costs all boil down to the slope and the soil quality of your site. This might cost you up to $70000.
3. BASIX (New South Wale) regulation fee
Your building is expected to comply with BASIX rules and regulations. BASIX is a set of regulations put together by New South Wales government to ensure every building is up to standard and sustainable. BASIX regulatory price depends on the quality of your site. The fee ranges from $8000 – $10000.
4. The extra cost of flooring
When building a house, ensure you include floorboards, tiles, and other flooring materials in your plan. The type of the flooring material you want to use will determine what your budget would be.
5. Hidden cost of Landscaping
Just as flooring, landscaping is mostly excluded from the building quote. Price also depends on your choice of landscape.
You will incur an additional extra charge for the driveway because they are mostly excluded from the entire building cost. Price revolves around your choice of driveway.
7. Hidden cost attracted by Slopes
Big slope tends to attract extra fees. You have an extra fee to settle if your site is having a larger slope.
8. Hidden fee that could emanate from poor soil quality
The best soil quality is known as M-classification and this is what your soil test result will be based on. Be prepared to pay an extra cost if the result of the soil test does not fall within the M-classification range.
9. Areas prone to flood
If your site is situated in an area that is prone to flood you need to plan for an extra cost for the necessary steps to be taken to avert any disastrous future occurrences.
10. Wheelie Garbage collector
For your refuse collections, you need to buy wheelie bin collectors from your local council and it might cost you up to $600.
11. The fee of modifications
Variation in building designs will attract charges especially if you want to alter an approved contract. A change of decision during the building process would attract an excess fee.
12. Land Registration fee
Ensure you find out if your site location is registered or not. An unregistered block of land would incur an additional charge.
13. Bushfire attack level fee
When building in Australia, it is necessary you do a BAL rating if your site is in a bushy location and this will absolutely attract some additional money.
14. Lender’s mortgage insurance
Lender’s mortgage insurance is a fee you need to pay if more than 70% of your budget is funded with a loan. Discuss extensively with your mortgage broker for a better understanding.
15. Charges for interruption and road closing
It would be required of you to pay an extra fee if your builders will interrupt traffic or close the roads during the building process. …