Budgeting for a custom home is more cost-effective than you might think. There is no fixed price for a standard house plan. And you are not only relying on the builder’s chosen raw materials, fixtures, and furnishings. When you are free to choose everything from raw materials to finishes, you end up spending on the home building costs you can afford.
If you are looking for custom home builders in Melbourne, you must start with understanding the cost factors of customising a home. Because knowing how much can be spent is better than your willingness to spend on unnecessary construction.
In this blog, you will discover all the cost influencing factors that add up in custom home construction. So, keep reading the blog till the end to get started with planning a budget first hand.
Checklist of Cost Factors for Budgeting Your New Custom Home
Letโs start with understanding the initial expenses and slowly progress towards the large costs associated with constructing a custom home.
- Cost of the Lot:
Buying a lot is an expense that covers more than half of the total home-buying costs. Choosing a plot in an ideal location is a crucial step in the custom home building process.
Custom home builders in Melbourne have knowledge and experience in providing the right advice to choose the total square feet of the plot to build a well-integrated home. Here are a few factors to keep in mind:
- Cost of land on average.
- Shape of land.
- Changes required in a land like excavation, compaction, and soil-testing.ย
- Landโs access to water, electricity, sewer, and cables.
- Home Layout:
A home layout is one obvious cost factor in designing a home and must match with the lotโs size. Custom home builders in Melbourne have a standard to custom house plans. When you choose a customisation benefit, you also have to consider your priorities. And for this reason, it is best to create a list of features you need versus those you want. Essentials should take priority in your budget, while you can scale back or eliminate the wants if necessary.
Consider the following features in a house plan when budgeting:
- Number of bedrooms, bathrooms, and any outdoor area.
- Decide on the total square feet area for your house.
- Location of the house.
- Inclusions available in a home plan, including appliances, doors and handles, tapware and basin, flooring, wall details, electrical connections, stairs, roof tiles, bricks, garage door, fascia, downpipe colours.ย
Many custom home builders in Melbourne offer promotional packages to include some of these features as a bonus inclusion without additional costs.
- Construction Loan or Mortgage:
You must also budget for a mortgage or construction loan. Besides the initial application fees and legal costs, paying deposit and interest over the term of the loan is a high-end expense. To reduce these costs, availing a benefit of a pre-approved construction loan confirms your financial capacity to build a custom home. Many house builders offer flexible financing options in the House and Land packages as well.
Here are some costs you must consider:
- Construction loan costs including interest-only payments, loan establishment fees, valuation fees, lenderโs mortgage insurance.
- Home loan costs involving stamp duty, legal fees, loan application & settlement fees, and title registration fees.ย
- Ongoing costs on water, electricity, and council taxes after owning a land.ย
- Cost of Materials, Finishes, and Fixtures
Besides all of the above cost factors, you must take into account the costs of raw materials, finishes and fixtures. The more premium quality materials you choose, the higher the costs will be. Consider these factors:
1. Price of Raw Materials:
- Lumber for framing.ย
- Concrete for foundations, driveways, and other sidewalks.ย ย
- Drywall sheets for walls and ceilings.ย
- Asphalt, metal, or tile for roofing or bathroom flooring.ย
2. Price of Finishes:
- Hardwood floorsย
- Laminate or tile flooring.ย
- Wall tiles for bathrooms and kitchens.ย
3. Price of Fixtures:
- Lighting.
- Bathroom plumbing fixtures.
- Faucets.
- Cabinets.
- Door handles.
- Other essential fittings.ย
Bonus Tips for Budgeting:
Here are some additional benefits to have when you are considering custom home builders in Melbourne.
- Home and Land Packages:
If you donโt want to get into the hassle of buying a land and then hiring a builder separately, then consider home and land packages are your ideal solution. Some builders offer this package that bundles the cost of land and home construction into one. In these packages, the cost of buying and excavating land is also included.
It is a fixed-price package, is cost-effective, and a convenient way to reduce the costs of buying both of these separately.
- Turnkey Package (Move-in Ready):
It is a fully furnished home package that is ready to move in. With a custom home builder, you get all the standard inclusions. Along with this, you are benefitting from the front and gear landscaping, coloured driveway, builders range blinds, builders range letter box, and clothesline.
- Partner Upgrades Promotion:
Partner upgrades promotional package is a limited-time offer for house owners. You get entitled to certain premium features or upgrades like free of cost appliances. That too, at reduced or no extra cost.
If you are a value-focused buyer who does not hesitate in spending a few extra dollars in exchange for a higher homeโs market value, then consider the promotional package as your best option.
Final Words
We hope you found this blog useful. As you see, planning your budget for building a custom house in Melbourne is crucial to avoid last minute surprises. Now, you are well-familiar with the cost factors behind purchasing a dream home from custom home builders in Melbourne. This involves assessing your desired home features, considering the total cost of the plot, the house layout, construction loan or mortgage house, and lastly the cost of fixtures and finishes.Remember, the key is to understand the estimatesย and choose the right package among the standard to custom home design packages, turnkey package, house & land package, or promotional packages. Choose Shri Homes in Melbourne as your ultimate partner for custom home design needs.
