Building a home can be an exciting project to embark on, but there are many costs that are often forgotten about when building your first home. Most people forget to consider costs such as paying rent whilst building, council fees, and preparing the block of land on top of other financial aspects. Factoring in these unexpected costs ensure you are sticking to your budget and that your expectations are met, ensuring your build is as successful and less stress as possible.
Here are a few of the expenses that those building forget to take into consideration...
There are different rules and regulations that local councils require land owners to abide by. This depends on where and what type of land you want to buy. Rules and regulations may change from one council to another. These may include:
● Council contributions – fees for goods and services that enhance community spaces
● Traffic Management – fees for any changes to traffic infrastructure due to building. Eg. Building close to a set of traffic lights
● Council tree requirements – fees to remove trees on a block of land before building (see local council for more information as some trees are protected) including trees near powerlines
● Stormwater, noise and other assessments
There could be costs to meet building compliance and standards for building on areas such as, building near an airport or bush fire prone areas. For development application guides, forms and fees, go to https://www.sa.gov.au/topics/planning-and-property/land-and-property-development/building-and-property-development-applications/development-application-guides-forms-and-fees
Site works cost
Preparation of the block of land before building commences can incur civil works and engineering costs. These may include;
● Retaining walls – a structure designed and constructed to resist the lateral pressure of soil
● Sewer adjustments – extensions and alignments
● Asbestos removal
● Soil Analysis – testing for shear strength, compressive strength, consolidation, permeability, foundation load, soil index and moisture/density to determine if ground is fit for building..
● Temporary fencing
● Delay costs – costs that incur when waiting for planning approval or other council requirements
● Technological changes – adding in internet line/NBN if connections do not exist on block of land
Taxes and Bank Fees
Taxes and bank fees such as GST, Loan fees including interest payments and bank charges are additional costs that should be considered as they can easily get out of hand.
The team at South Coast Realty are always on hand to help answer any of your questions or concerns when you purchase land or property! Why not get in touch, and let South Coast Realty help you with your next big project!