Starting from scratch: Costs involved when building a new home

It comes as no surprise that building a new home from scratch can be very expensive - and that's not even including the initial land purchase! On top of construction costs, there are many other expenses to take into account. Some are things that you may not have originally even thought of.

It is best to have at least an estimate of what cash you'll be handing out before you get the construction ball rolling. It is not uncommon to get halfway through the building process only to realise that your dream home is going to leave you in nightmare debt.

Standard costs to consider before planning your new home

There are many small and large expenses involved when building a house. Firstly, there are the technical costs such as legal fees, stamp duty and building insurance costs. Legal fees alone are something to really take note of, as lawyers are notoriously expensive.

Then there are the costs associated with the physical construction of the house. The major ones include labour costs for builders, plumbers, electricians, carpenters, as well as architectural costs if you choose to employ an architect.

Additional costs associated with building a house

We all love a little luxury in our lives, but obviously it comes at an extra cost. Some optional factors that may affect the construction cost of your home include:

• The shape of your home. The standard square or rectangular shaped homes are the cheapest to construct. Extra corners or unusual shapes may call for additional labour and architectural costs.
• The land purchased can have a potentially large impact on the overall cost. Clear, flat surfaces are the most cost-effective blocks of land to invest in. Uneven or hilly land may result in higher construction costs. Similarly, if the land you purchase has many trees present there will be extra costs associated with clearing them.
• Outdoor luxuries such as pools, spas and patio areas will significantly bump up the price.
• Extra windows and doors can cause the overall cost to increase.
• Materials used in the building process will have a large impact on the cost. For example, a marble staircase will cost a lot more than a timber one. Research how much your chosen materials will cost before planning the house design.

How to estimate the total cost of your home's construction

All sorts of unexpected events occur throughout the house building process, so it would be impossible to guess an exact figure. You can, however, determine a ballpark figure that works for your budget, remembering to allow room for any unforseen disasters.

It takes time and a lot of effort, but quotes from various professionals will help you to add up the total. Architects will also provide a fairly good estimate on labour, construction and material costs if you choose to hire one.