SPECIAL REPORT 11 Hidden Costs when ... - Alphaline Homes

11 Hidden Costs when Building a

House

In this report we identify 11 areas that can be overlooked

by a typical home buyer.

SPECIAL REPORT

Intro.Building the right home is becoming more confusing than ever.

Generally the home buyer wants something unique they can

call home, but one burning question always remains:

What’s included and what’s not included in the package on of er?

Often our attention is drawn by advertising with a price

attached. And then, once we have fallen in love with the overall

layout and design we realize that the completed home can cost

signifi cantly more than the original price that was advertised.

With more and more builders competing for your work, this

can be frustrating and can be dii cult to compare features and

prices. So where is our best return on investment?

First, let’s be clear about the pricing of any new home. Your

fi nal cost cannot be determined by a list of standard inclusions

and a base price supplied by a builder. There are many variables

and associated hidden costs that can alter your budget,

especially if you aren’t aware of these essential costs.

In this report we identify 11 areas that can be overlooked by a

typical home buyer. In any building exercise, small or large, it’s

critical that collaboration and open discussion is held between

you and the builder to ensure the experience is enjoyable, and

more importantly, that you get what you want for a fair price.

Don’t just take a builder’s word for it: this guide will allow you

to reduce those hidden costs and budget accordingly.

1. Extra Features & Upgrades

Keep in mind that most home designs come with a completely modifi able and fl exible base

price so that the price seems attractive to most buyers. This means that any add-on or

upgrades will cost more.

Ideally, it’s best to consider all your extra features and upgrades before you commit to

building with a certain company. Variations to the plan are more costly once building is

underway. Ensure that all your variations and extras are tabled and costed before the

building process begins.

Create a dream list, consider items like, studios, fi replaces, decorative lighting, and even the

type of tiling you want in your kitchen and bathrooms. Browsing the internet can be helpful

when creating a draft budget on extra features but make sure it is AUD (Australian Dollars)

when looking online.

As long as you are well organised, clear and decisive and know your budget when designing

your home, you shouldn’t have any problem in arriving at a dream home within your budget.

1300 584 663 / alphalinehomes.com.au

Be well organised, clear, decisive and know your budget.

TOP TIP

2. Soil Classifi cation

A great site with awesome views and healthy vegetation could be very misleading as the soil

underneath could be terrible to build on. A soil test is critical for the builder and the owner so that

they are aware of the substructure they intend to build on. This classifi cation is based on the content

of clay, sand, rock, moisture levels, compaction levels and how reactive the subsoil is to movement.

This classifi cation will determine what the foundation and under slab design will consist of.

It’s not uncommon for poor quality fi ll to be used by a developer or an old land owner at some

point in the past. For example, soil may have been dumped to level an area or fi ll a hole, but not

compacted.

Before a builder can quote accurately for any build they will need a Geo Technician to carry out a

soil test. This test includes at least 3 bore holes drilled down into the soil on the area of the intended

house pad. Di� erent blocks will have di� erent types and compositions of soils, and this will vary

depending on how the local area has been developed over recent years. One of the most important

things to consider when you are building is how ‘reactive’ the soil is and what extra footing

requirements necessary to reach a stable foundation.

This soil classifi cation also relates to the next subject - site survey so the builder can best determine

the foundation depth. The soil testing costs can vary anywhere between $300 - $600 and once

the soil classifi cation has been determined the foundation type can be engineered accordingly.

A standard foundation may consist of screw piles, bored piers fi lled with concrete, or a standard

conventional concrete slab design with strip footings.

The majority of home builders will include ‘M’ classifi cation in their general base price. If the soil

test is classifi ed below an ‘M’ class, extra costs will no doubt apply. These could vary substantially

depending the actual classifi cation.


A soil test is critical for an

accurate quote.

TOP TIP

3. Surveying the site

It is vital that we understand the costs associated in making a building site suitable for any

desired views, storm-water runo� , and more importantly, ensuring that we are able to make

good contact with solid natural sub structure so the house remains stable. A site survey may

have already been carried our recently by the land developer, however in some situations a

new site survey may be needed which may or may not be included in the builders cost. A full

contour surveyors plan could cost anywhere from $800 to $2500.

Once an accurate site survey has been located or completed, the builder will have to analyze

the results and determine the costs associated with building on your land.

You may have to pay extra if the survey highlights extreme variances with your block. For

example, sloping blocks require a lot more work before building can commence. If a sloping

site is to include a slab construction, a cut and fi ll process is normally utilised making it

rather cost e� ective, however in order to achieve the correct fi nished fl oor level, sometimes

soil needs to be imported or removed and taken to another site. Removing soil from a site

and transporting it to another approved site can add substantial costs. Ensure this is covered

within the contract.

Additional landscaping and safety costs associated with the installation of retaining walls

also needs to be considered as covered below. If the soil is mainly sand, barriers or walls

may be needed to prevent it from being washed away.


An accurate site survey helps

determine costs to build on you land.

TOP TIP

4. Excavation & Retaining Walls

As noted previously, some sites can be more costly to build on than others. The most

common cause of expensive site costs is when the site is situated on the side of a hill and

has a signifi cant slope. Remember, soft or unstable sites can also require more work than a

standard block.

Retaining walls are designed to hold back soil, preventing it from falling or being washed

away onto yours or an adjacent property. Retaining walls must be built well to take the

normal load plus the added weight of very moist soils such as clay which will expand. In

addition, no one wants the trouble of having to replace their retaining walls every few years,

not to mention the safety concerns that come with poorly constructed walls, so the right

design and budget allowance is critical.

Unfortunately, high quality retaining walls can be expensive. You need to make sure that

you consider this when you are designing your new home to make sure that you don’t get

hit with extra, unexpected costs. At times, it may be dii cult for a builder to determine what

walls are going to be needed till the building pad has been fully developed, therefore this is

a discussion that needs to be held with your builder.

If your site is an acreage block with slopes you may be able to achieve a solid building pad

without the extra costs of retaining walls as you could have room to batter the building site

without it a� ecting adjacent properties.


Site excavation and retaining walls can

be expensive, so talk to your builder.

TOP TIP

5. Development Covenants

Most estates and developed areas come with developer guidelines often referred to as a

covenant. This could include a variety of details that are mandate. We recommend that you

know what the covenant includes and make sure that your builder is fully aware of these

guidelines and have allowed for any associated costs so that your house complies.

The best thing to do is to sit down with your builder, give them a copy of the developer’s

covenant, and ask them to factor any items into the costings. Keep in mind that some

covenants are quite strict, and you may have to pay more than you had budgeted for in

order to comply.


Covenant compliance helps

to protect your investment.

TOP TIP

6. Energy E� ciency

Making your home energy ei cient is an absolute must in the modern world. Saving of

electrical consumption and minimizing power bills is vital in todays’ economic climate. It’s

important to be aware that a lot of basic home designs don’t come optimised to save you

money on your electricity bills.

Even the addition of simple things like insulation to reduce your heating and cooling costs in

Australia’s extreme climates can incur extra charges, especially if you want something better

than the basics. Make sure that you talk to your builder about insulating your home before

you commit to anything, so that you have an idea of what’s included. Failing to do this may

leave you paying a lot more than you expected by the time your house is fi nished.

The same thing can be said for sources of renewable energy such as solar panels and solar

hot water systems. Double glazed windows is another area that needs attention, particularly

in colder regions. Things like this can dramatically reduce your electricity consumption,

saving you a lot of money in the long term. However, it’s important to consider energy

ei ciency when designing your home, as it can cost a lot to add on later.


Energy e� ciency isn’t just about being

green - it’s about saving money.

TOP TIP

7. Buying from a Display Home

Visiting display homes is necessary in helping the buyer to understand design layouts, what

are the best fi xtures to include, understand how the space can be best utilised and getting a

general feel for the quality of the build.

A well-furnished home will always be more appealing to a buyer than an empty fi nished

house. An area that is often overlooked is the fact that a display home has also been built

to impress the buyer. It’s best to request to see houses currently under construction or near

completion so that you can experience fi rst-hand the quality of the product provided by

the builder as furniture can often be used hide defects. Always qualify where the builder

is currently building and explore the option of visiting a couple of their homes under

construction. Yes, safety needs to be considered, but that should not be a road block in

stopping you visit a site under construction.


Display homes are a good start, qualify the quality of homes under construction, respect

site safety!

TOP TIP

8. Renting whilst building – Construction time

On many occasions people rent or live with friends and relatives during the construction

phase, prior to moving into their new dream home. This can have fi nancial and physical

challenges. As part of the planning process and calculating your extra rent, it’s important

that you understand up front what the general construction time is when selecting the right

builder. This will vary immensely depending on the initial site excavation, size of dwelling,

number of levels & pool construction. You may also want to engage an independent quality

inspector to approve of the home before moving in.

Generally construction time will exclude the planning, design work, selecting colours,

appliances and having the approval council to start building. Normally the construction time

would commence once earthmoving begins or the fi rst fl oor level is set in place.

Your builder should be able to provide you with a clear detailed schedule outlining the

weeks needed to fi nish the build. Be aware that there will be some wet days where the

project will be held up. Some builders may provide you with a guarantee build time - always

qualify this in detail with the builder so you can plan for any extra fi nancial or rental costs

prior to getting full ownership.


The road to success is always under

construction.

TOP TIP

9. Electrical - Su� cient Lights & PowerPoints

Nothing is more frustrating than moving into your dream home, to fi nd that you haven’t put

in enough power points or in the correct location. A similar frustration is a lack of adequate

lighting throughout your home. Installing power points and lights after your home is fi nished

is not impossible, but will cost you a lot more than if you had included everything in your

initial design.

Often only one power point per bedroom is allowed. Make sure you discuss your electrical

requirements closely with your home builder to ensure what is included is sui cient. The right

builder will help you plan exactly where you need power points and lights within your home.

If you are not sure what you need in your new home, consider taking a look at a few display

homes so that you can get an idea of the options. In some places – such as the kitchen or

study - you will need more lighting than in the rest of the house.


Let there be lights!Let there be power!In the right places!

TOP TIP

10. Floorcovering / Driveway

There are times when a house builder will advertise attractive prices with the words in front

‘starting from’. Mostly these call to action prices only include the absolute basics and that is

all okay if you were just wanting basic features.

Unfortunately, the likes of fl oor covering and driveways are not always included in these

‘starting from’ prices, so it’s essential to be aware and ensure you understand what is

included. In addition, there can be several upgrades of fl oor coverings and driveway options;

so it’s critical to insist that you can touch and feel the options and see the additional price

upgrades, before agreeing to the fi nal quote. When meeting a builder, always ask about how

you can see, touch and feel the upgrade options. Most builders o� er a design studio of their

own, with everything under one roof rather than needing to visit many di� erent showrooms.


Visit our design studio today!

TOP TIP

11. Utility costs whilst under construction

Even though your house is not livable, it’s important to understand that you will be faced

with extra utility costs such as power, rates, water and possibly gas. You may take ownership

of your land a week or two prior to building and in 3 months whilst construction is well

under way, as the new land owner, you will receive bills for some if not all the utilities.

These need to be carefully budgeted for as in most applications, you may now have two sets

of utility bills to pay for. Hence the reason to research the building time to identify what the

cost there will be. If you were able to get a home built quicker, there could be a substantial

saving in the utility costs.


Consider all the associated costs.

TOP TIP

1300 58 HOMESCONTACT US TODAY TO GET STARTED

www.alphalinehomes.com.au

Get In Touch for More InformationWe would encourage you to meet us at our Design Studio in North Lakes,

where you can touch and feel many options including; the kitchen features,

tap fi ttings, toilets, fl oor options and fi nishing accessories just to name a few.

We can also provide a free design concept to suit your land. This will give you

a clearer understanding as to what is included in an Alphaline Home.

We hope that this article has helped clarify things for you with regards to the

hidden costs of building a new home. If there is anything that you are still

unsure about, then please get in touch with our customer service team today.

SPECIAL REPORT 11 Hidden Costs when ... - Alphaline Homes

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