Building Prices – variables to consider
Sharpening up your knowledge of building prices will help you to be a more informed consumer (and not get ripped off!). With building prices going up, it pays to make wise decisions straight off the mark.
Firstly, there are many factors that influence building prices in Australia, including:
- The nature of the project (house or commercial use)
- The season
- The Builder
- And more
Where to start- the first decisions
When building a new home, your basic choices are project homes, kit homes or having an individual home designed from scratch by a draftsman or architect. Keep in mind that prices vary dramatically. The cheapest homes are almost always project and kit homes, which start at around $750 sq/m. One-off custom designed homes can set you back thousands a square metre.
- Buying a project home:
One of less stressful and most economical routes to take, as can see finished display homes before you buy. An added bonus is that many project homes are now also building to green principles.
- A kit home:
The most basic kit homes generally start at around the $30,000 mark. This does not include electrical, plumbing, building or site works or items such as kitchen cupboards.
- Custom designed home:
Having your home designed from scratch by an architect or a draftsman is the most expensive option, but it can also be the most satisfying. Hiring an architect to design and oversee the construction of a home usually costs 10% to 15% of the total expenditure.
Remember that before you start any building project it pays to learn as much as possible about the building industry. As you gather industry and local knowledge you’ll find that you’re able to save money and get the outcome you desire.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan