The most important thing before embarking on the process of building a private house is examining whether one has the economic means to cover the entire expenditure. Financial planning is a key to success in many processes, most surely when building a private house.
When realizing the dream of a private house, one often sails off into unrealistic dreams. Financial planning stabilizes the boat and leads the project to a haven. In order to begin examining the possibility of building a private house, it is important to understand the composition of the overall pricing, in order to assess the ability to meet the financial demands of executing the project.
* Buying a plot – Buying the land to build a private house on is the first and most significant component. The price range is very wide and depends on geographical location, size, land type and more. An integral part of purchasing the area for construction is of course obtaining a building permit, so that the development phase can begin.
* Development taxes and levies – Beyond the building permit expenses, there are a number of different levies that the local authority charges for the construction of a private house in its territory. Usually, these levies are calculated during the building permit stage. These are levies for road construction, sewage and plumbing, open public spaces and so on. The levies can be for both the plot of land itself and the built-up area. Each local authority sets its own levies, and one must check the cost when preparing the economic plan for the entire project.
* Construction of the skeleton frame of the building and plot development – Another important component is the total cost of plot development works and the construction of the skeleton frame itself. This refers to walls, floors, balconies, interior landings and more. The price of building the skeleton frame varies, of course, depending on the chosen method of construction – traditional or prefabricated – and the corollary prices of construction materials, the amount of manpower required, the type of foundations and more.
* The costs of the final stage – After completing the work on the skeleton frame, begins the work on the final stage. Sealing and insulation, paintjobs, aluminum works, electricity and communications, plumbing etc. The costs of these are determined by the type of materials and quality of work, and necessarily vary from project to project.
* The costs of the contents of the building – Personal taste has a great effect on the contents of the building. Interior design, furniture, kitchen, lighting fixtures and so on, are factors that are entirely dependent on the personal taste of the tenants and of course their financial ability, therefore it is difficult to make a general calculation in this area.
Largely, after calculating the costs of the contents, one can say that the main aspects of calculating the costs of building a private home are covered. However, it is important to know that there are still additional expenses to consider, such as various insurances, assessment services, opening a mortgage portfolio and various tax payments.