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The Hidden Costs of Building a New Home

If you’ve ever built a home before, it’s likely you were surprised at the difference between the actual cost of the build and the advertised price of the home design you had chosen. As an outraged friend of mine said after she’d attended her pre-start for a new home “it’s like they’re selling you a car with no tyres!”. More accurately, it’s like they’re selling you a house with no floor coverings, window treatments or light fittings (just to name a few).

Typically, the advertised price of a house and land package includes the cheapest possible block in the advertised location, and a house that doesn’t include many of the essentials such as carpets, window treatments, internal painting and other often overlooked details such as light fittings, exterior lights and more. Often, it isn’t until somebody signs for a block and sits down with the builder for their pre-start that they find the home needs many costly inclusions.

Perhaps worse still, it’s easy to get caught out after the build is completed to find that you aren’t getting the home you thought you were. Clients of ours told us a story of an investment property they had previously built which, unbeknownst to them, did not include internal wall painting – and it wasn’t until the keys were handed over and a tenant was ready to move in that the owners discovered there was not a single drop of paint on the walls. Given the timeframe, it wasn’t possible for the owners to arrange a painter, and with the husband working away FIFO it meant the wife had to spend a week painting the new house solo so the new tenants could move in as planned.

So, how can you avoid unexpected costs and nasty surprises?

If you’re building through a regular residential builder, it’s important to make sure you always read the fine print and don’t expect that the advertised price for a house design is going to be the price you pay. Even the little things like extra power points really do add up, and it’s easy to add several thousands of dollars to the price of the build during your pre-start just by adding small, but most likely necessary, details.

When choosing a builder, take the time to compare all the details. Oftentimes, there will be many additions required to the base specification as advertised by the builder to have a finished home that is ready for a tenant to move in to. For example, does the home you’re building include a letter box? A washing line? Front and rear landscaping? These additional items may cost more than you expect, so it is important to consider all of the small and not-so-small details before you sign on the dotted line.

We take the stress out of building

Not only do we ensure your newly built home is all inclusive and ready for a tenant to move straight in, but we take all of the other stresses out of building a property.

We take care of dealing with the builder, developer and settlement agent as much as possible on your behalf to ensure your build is completed on time and to a high standard, with as little impact on your time and your lifestyle as possible. We also assist you with securing a property manager and importantly a tenant, because unlike a builder, our relationship with you doesn’t end when the build is completed – we will always be here to assist you to make sure you’re getting the best possible return on your investment and that your financial strategy is helping you to achieve your goals.

Our service is free, so if you’re thinking of building an investment property give us a call.

 

 

 

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