Most brand new houses cost much more than you might think.
It can be a lot more than the cost of the land, plus the builders price you see in the advert.
1. Site Works
The advertised price of a new project home assumes that the house will be built on a perfectly flat site, with good ground conditions. Something that is fairly rare.
Even a small site slope can add $5,000-$10,000 to the price.
If there is a lot of fill, or other unsuitable ground, it can add another $10,000 or more.
Its not unusual for a really difficult site to add up to $50,000 .
When you look at a builders display house you are looking at a lot more than the standard house for the base price.
The typical display house includes upgrades that increase the build cost by between 30% to 60%.
Typical upgrades that will be offered to you at the Builders ‘Selection’, ‘Gallery’ or ‘Pre-Start’ Meeting include:
• Premium Brick
• Different Roof Material
• Higher Ceilings
• Upgraded Kitchen
• Upgraded Bathrooms
• Upgraded Floor Material
• Electrical Upgrades
• Heating and Cooling Systems
For more information on deciding on upgrades see the anewhouse Prestart Guide.
3. Finishing Touches
Additional finishing costs when the house is built can include:
• Curtains and Blinds
• Light Fittings
• Garden Paths
• Washing lines.
When thinking about a budget for a new house I think you need to expect the final cost to be at least 20% over the base cost of the house and land. It could be much more for a difficult site and/or you want a lot of upgrades.
If you want to avoid having to borrow more than you can afford …..and maxing out your credit credit card do as much research as possible.