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…to your liking, according to your needs, tailored to your needs… with the crisis, the collapse of construction, the bankruptcy of numerous promoters… more and more families and individuals have opted for self-promotion in order to gain access to a home at cost price by avoiding the extra cost of buying directly from a developer.
Knockdown rebuild your own house is not an easy task and a mistake in calculating the budget can be devastating. You have to be very clear about the costs involved in knockdown rebuild your own home. It is convenient to take the calculator so that the accounts balance.
First of all, you should know that the bulk of the budget -approximately 80%- is used to buy the site and carry out the works . However, there are many other expenses that are not usually taken into account and that can cause more than one disappointment. Knock Down Rebuild Sydney is talking about taxes, technicians’ fees, municipal licences, management after the work, financing…
The most important expense, the purchase of the plot
Broadly speaking, only the purchase of land can eat between 40% and 50% of our budget, it is convenient to carry out a sweep of the market to form an idea of the prices in a certain area.
Taxes: vat, itp, ajd…
To the price of the plot must be added the expenses derived from the deed of sale of the plot: notary and registrar fees that are usually around 0.5% of the purchase price. In addition to the property transfer tax (itp), between 7% and 9%, depending on the autonomous community and as long as the seller is an individual. If it is a knockdown rebuild, you will have to pay 21% vat. Without forgetting the tax of documented legal acts (ajd).
To these taxes must also be added the vat that is applied to self-promotion works and that is approximately 10% of the contract budget, that is, the knockdown rebuild company’s budget. The vat applied to technical fees -architect, surveyor, builder…- is 21%.
House construction
We need a knockdown rebuild company to carry out the works, it is advisable to request several budgets and sign a contract at a fixed price. The contract budget is usually 19% higher than the material execution budget of the works «as it includes general expenses (13%) and the benefit of the builder (6%).
This is the second most important item that we must take into account when preparing our budget, it is the material execution of the works that ‘eats’ approximately another 40% of the expense. In this section it is also necessary to consider the fees and the benefit of the builder and some taxes such as those that are levied on his fees.
An indicative value that can serve as a reference is the 750-900 A$ that the constructed square meter of housing costs, before starting to knockdown rebuild it is necessary to carry out a topographical study (250-400 A$) and a Geo technical study (650-800 A$). for the good foundation of the house and necessary to prepare the knockdown rebuild project. It is at this point when the basic knockdown rebuild project must be entrusted to an architect who, obviously, charges a fee for his services. This expense is usually around 4-6% of the material execution budget.
Municipal licenses.
Before starting to knockdown rebuild, a building license from the city council is required, as well as a health and safety plan. In addition, the start of the works must be communicated to the competent authority. Contracting civil liability insurance for all construction risks and ten-year material damage insurance is mandatory. Without forgetting the contracts with a technical control body and a quality control entity.
Once the works are finished, the architect and the technical architect will have to sign a certificate of completion of the work and once endorsed, the first occupancy license can be requested at the town hall, for which you also have to pay and without which you cannot you can enter to live in the house, as well as by issuing the certificate of occupancy, although it is usually a very small amount.
Likewise, a tax must be paid on constructions, installations and works, the percentage of which varies according to the city council, and a construction and demolition waste management bond must be deposited, which is returned at the end of the works if the correct management of the waste is proven. Waste.
Scriptures.
Although the works have been completed, the self-promoter still has to face another series of expenses. For example, he must carry out the public deed of a new work before a notary and register it in the land registry. As in the sale of land, you have to pay the fees of the notary and the registrar, around 0.5% of the value of the home.
In addition, the different supplies such as water, electricity, gas and telecommunications must be registered, the price of which already depends on each knockdown rebuild company, although it can be around 200 A$ per supply.
Read also : How to value property : Adelaide Property Valuers Guide
