Buying a house is often the investment of a lifetime and it’s essential to be well prepared. With the current property boom we’re all experiencing, for some people, building is a reasonable decision, and the advantages are plenty: choice of land, layout, energy efficiency, modern systems and amenities, and more. All these points can seem enticing, but they also come at a cost! A successful , satisfying project is therefore highly dependent on a well-established budget.
1. Buying the land
To make a wise choice, make sure the location matches your present and future needs. Generally speaking, the cost of your land will represent 25% to 30% of your total building budget.
Don't forget that several other costs will be involved in making your land buildable and viable. These include important connections:
- Water and sewage — $1000
- Electricity — $300 for less than 100 ft to an electrical connection
- Gas — if applicable — $300 as a basic fee
There’s also the surveying of your land, for which you can budget around $2000.
Depending on the area you’ve chosen, you may also want to evaluate soil and water quality. Expect to pay between $800 and $2000 for this geological survey.
If your land isn’t serviced by the water and sewer system, you’ll also need to budget $25,000 to $35,000 to install a well and septic tank.
2. House plans and design
When opting for a new construction, know that you’ll need to call on an architect or a technologist. They specialize in creating the detailed plans for the design of your future home. The architect's fees represent 5% to 15% of the construction costs. This includes support from beginning to end, throughout all the steps. If you decide to work with a technologist however, you can expect to pay $1500 to $3000.
3. The construction
This is where your project starts to take shape and it’s also where most of your budget will go. Naturally, depending on the quality you choose, materials have a major impact on the cost of construction. To give you an idea, here are ball park figures for what you can expect:
- Lower bracket: $150 per sq. ft.
- Middle range: $175 to $225 per sq. ft.
- High-end: $275 per sq. ft.
And finally, there are other expenditures you’ll want to keep in mind...
- City permit — more or less $250
- Property transfer (Welcome tax) varies according to the property value
- Notary — $1200 to $1600
- Landscaping — More or less 10 % of the property value
- GST and QST on materials and services
For a successful construction project, each of the parties involved must be selected with care. If this type of project has been on your mind for a while, please don’t hesitate to reach out. Building is what we do and we’re eager to help build your new home.