Last modified: 2019-03-13 | Approximate reading time 4 mins
Every self-building project inevitably starts with one pressing question: how much will it cost? Indeed, it seems impossible to put this question on the back burner.
The vigilance with which you will define some aspects of your project will have a great influence on the accuracy of your budget and will help in avoiding unpleasant surprises incurred by additional expenses. But how can you plan your self-building project adequately?
To begin with, we have to admit that it is impossible to provide exact numbers when it comes to the cost of building your own home, each project having its own specificities. Many factors will, in fact, cause the total amount of your bill to vary, including the quality of materials used, the number of employed people working on your project or the location chosen for the construction of the new residence.
However, some guidelines can be very useful in order to avoid leaving out the calculation of an important element or spending an excessive percentage of the budget on a single stage of the project.
In order to know if you're able to build your own home, you first need to know the amount you have available in order to avoid any financial problems. Thus, an appointment with a financial advisor is recommended to know how to plan accordingly. In general, the repayment of your debts should never exceed 42% of your gross income.
In these calculations, your financial advisor will evidently take your current financial obligations into consideration before deciding on the matter. Following this meeting and the decided amount for your maximum budget, you should reserve about 15% of this sum for unforeseen events to avoid exceeding the costs incurred by your self-build project.
For the budget linked to buying the land: Expect approximately 25% to 30% of the total price of the project regarding purchasing of the land. It should be noted that from this percentage, a proportion of 7% to 8% will be reserved to pay the notarial deed.
For the budget allocated to the construction of the house itself, you'll have to respect the following proportions:
Note that a municipal sewer connection alone costs at least $2500. On its part, the cost to be paid regarding the connection to electricity will be evaluated according to the distance of the new home from the electricity network.
Note that the above-mentioned proportions must be respected regardless of the workforce mobilized as part of your project.
Other fees will need to be considered, in which the prices will vary according to your project. Thus, don't forget to establish a budget for:
Despite all these steps required in order to complete a project of such magnitude, it should be noted that a self-building project will manage to save you about 30% compared to a turnkey project (with similar characteristics).
Do you absolutely want a basement? You'll have to increase your budget by at least 5% to do so. In order to get the best possible price for necessary materials regarding your project, make sure to get at least three quotes from suppliers.
If defining a budget and sticking to it is an important part of the overall planning of your self-build project, complying with established requirements is also another major step that you will need to take into account.
Before taking the plunge, you'd like to know about the challenges of a self-build project? Head over to our article about the matter!
Author: Karine Dutemple
Translation: Christine Simard
RenoQuotes.com can help you get quotes for your auto-construction project. If you submit your project to us, we’ll put you in contact with top-rated contractors. Fill in the form on the homepage (it only takes a few minutes), and you will get estimates from trusted professionals.
Toronto - Calgary - Edmonton - Montreal - Ottawa - Vancouver - Halifax - Winnipeg - Windsor
© 2019 RenoQuotes.com