It’s beneficial to consider your budget early in the decision making process of building a new home. Sure, things can change, but having a good understanding of the finances you are prepared to invest in the whole process will shape many aspects of the build.
One of the first things to do is to get some help to set your budget and understand what it needs to cover. Talking to investment consultants, real estate agents, financial brokers, your bank or solicitor or can assist to guiding you through this process. KM Construction can help provide support and advice as to whom to approach.
Consider also why you are building this home and how long your finances will be invested. For example, if you are considering building as an investment, the turnaround time to realise potential capital returns will be different than building your family home. All These points are just some of the things you should consider and factored in early.
Have as good an idea as you can about your budget prior to meeting with your builder or architect as they can then guide you through the types of homes that this will cover.
It’s important to understand that the planning and design stage is of consultation and interpretation, so be sure to speak your mind about your goals for what you want to achieve with this your budget.
Another important factors to consider aside from the hard costs of building a home are architectural design, engineering, government/council fees, stamp duty, relocation/removalists, rent, permits, insurances and the like. Not all of these will apply to every build , but it is important to make allowances for all of these expenses initially.
Below is a list from a build and the cost areas associated with the completion of the home.
Total building costs:
- Land costs
- Kitchen, laundry fit out
- Bathroom, ensuite and powder room fit out
- Carport and driveways
- Decks, retaining walls, landscaping and fencing
- Curtains, blinds and other fittings
- Swimming pools, lifts, staircases
- Architects fees
- Surveyor, structural engineer, quantity surveyor
- Council and building certification fees
- New furniture and decor items
Have you heard about the importance of having a contingency before? Industry professionals suggest a reasonable contingency is to allow 5-10% of your total budget. This is to cover any issues that might arise such as building issues ( type and method of construction, design, market forces or contractual conditions).
Top Tips for setting your budget
- Work out what impacts and guides your budget (available funds, investments etc)
- Discuss with your team what options you have to meet your brief within your budget
- Planning with accuracy and fore thought usually takes twice as long as the build.
- Allow 10% contingency
“although budgets are flexible the key is trying to stick to them”
Two ways to calculate your budget
1) Square Metre Rate
If you know the size of the home you are looking to build, you can calculate square metre rates to give you an estimate of your budget based upon the level of quality and finish you are after.
KM Construction can work out a precise estimate based upon your design, site and wishes. We do not use a square metre rate to quote jobs, but it can help give you an indication of a budget.
- Basic/Standard level finish – allow $1400 – $1600 per square meter
- Medium level finish – allow $1600 – $1800 per square meter
- High level finish – allow $1900 – $2100 per square meter
- Custom/architectural level finish – POA
2) Budget estimate
Download KMC Home build estimation tool to work out a more accurate estimate.
Talk to KM Construction today about your new home build and how we can help you establish your budget.