Kiwis should know that groundwork and building permits are just some of the hidden costs of constructing a home from scratch, according to CoreLogic. The property services provider said that aspiring homeowners must foresee all expenses for the actual price of building a house or risk spending more than necessary.
Determining Hidden Costs
Foundation specialists at Waikato Post Ramming say that if you plan to build a home in the North Island, the cost of drilling services in Waikato for groundwork are some of the expenses that will require an estimation beforehand. Choose a contractor with decades of experience in foundational drilling for the residential sector. This ensures that your money is well spent.
Administration costs serve as another hidden cost that could be overlooked, and this usually refers to fees for dividing the land into strata title or freehold lots. Some of these costs include lawyer’s fees, land surveying, and resource consents. Once properly estimated, the cost of building a new home may be more cost-efficient than buying an existing property.
ANZ economists believe that it has become more affordable to build a house in New Zealand, instead of acquiring an existing property. Existing home prices have risen by 50 per cent since 2012, compared to a 30 per cent increase in the cost of new home construction in the same year.
Still, the relative affordability depends on where you plan to build a house in the country. For instance, a government report showed that the initial cost of building a home in Auckland costs $445,000. It costs $395,000 elsewhere in the country.
It is best to consult with a general contractor who could provide you with a detailed list of expenses for a new home project. While it may be cheaper to construct a house, you run the risk of overspending if you fail to anticipate some expenses that may not be obvious from the beginning.