Before you start building your house, there are a few rules to follow and some questions to ask yourself. What are the costs related to the work? How to choose the right terrain? What materials should be favored? Which professionals should be called upon? From Eric Arnoux Luxe you can have the smartest options now.
Prepare your budget for the construction of your house
Evaluating your budget is not only adding up the price of a piece of land and that of a house but it’s also predicting the additional costs that you don’t immediately think of. An inventory is to be undertaken before any decision is made. And this process takes time, especially when you go to your banker and to its competitors, of course. In order to develop a financing plan and know the content of the envelope, you will have.
Next comes the distribution of this sum according to the items: the price of land, house, but also other costs that are difficult to compress. And there, you quickly understand that the adjustment variable is, unfortunately, the very object of your dream: the house its surface, its number of rooms, finishes, equipment, etc.
Costs related to mortgage
Application fee: They represent around 1 to 1.5% of the principal loan amount and are negotiable. Discounts of 20 to 50% are possible.
Interim interest: As mortgage loans are released, you will begin to pay the interest on these amounts until the delivery of your home. Payments will be added to your current rent. With the builder’s call for funds schedule, ask your banker to estimate the interim interest and continue to negotiate with him.
Geological study: Recommended in case of doubt about the stability or the nature of the basement. Cost of the operation: between 800 and 2000 dollars.
The commission of the real estate agency: Most often, it is included in the price of the plot and paid for by the seller. Confirm it anyway from the first contact.
Notary fees: They are divided into emoluments and registration fees. It takes about 8% of the purchase price for average land.
The viability: It’s like connecting your land to various services: electricity, gas, water, sanitation, telephone networks. In a housing estate, these costs are almost always included in the price of the land which is sold serviced. For a diffuse isolated plot, the prices depend on the distance between the boundaries of the land and the equipment to be connected.
The boundary: It is essential to diffuse. In general, its cost is borne by the seller, but not always. Have it specified and, if necessary, request a quote from a surveyor.
The building permit: The procedure is free, but a file prepared by an architect is not. The fees are free. It takes between 1,200 and 5,000 dollars.
Damage insurance: It is compulsory and, as the contracting authority, you must subscribe to it. It is expensive 2 to 3% of the price of the house, but it guarantees you the reimbursement and the repair of the damage which can occur after the reception of the works without having to wait for a court decision. Please note, it does not cover the risks of non-completion of the site in the event of failure of the contractor. Do not hesitate to consult several insurers to find the best price.