There’s nothing as fulfilling as having your dream home. However, before taking this bold step there are some vital information you should know to avoid financial crises.
Due to fluctuating market prices, contemplating the price of building or acquiring a new home can be very stressful.
While building cost in South Africa is quite affordable depending on your desired location. It is necessary to determine a realistic budget before launching a construction process.
Urban areas are more costly compared to less congested places; therefore, it is necessary to come up with a realistic budget based on the location of the project.
And how does location (as in which province in the country) affect building costs? Let’s find out…
How do I estimate the cost of building a house?
Following the successful acquisition of land, start by highlighting all the likely costs in your financial plan. Some critical elements of the budget are building costs and professional fees which change reasonably depending on the scale of your construction. Discussed are some essential cost items you should consider to make sure that you build your house within your intended budget.
The price of building a house varies considerably across the state as provided by the municipality building plans released in 2015. Different types of buildings come at different building costs as gazetted by various local government institutions. Below are the types of houses and their cost per square meter.
- Flats – R8,163/m2
- Office spaces – R8,092/m2
- Shopping space – R7,364/m2
- Townhouses – R6,802/m2
- Free-standing houses – R5,932/m2
Here are some fundamental elements involved in estimating new house building expenses in the country.
1. House building expenses
Quality and design details are two key factors involved in estimating building costs. High-end market quality houses are expensive and always on-demand at costs ranging between R8,000 and R13,000 for every square meter. Some South Africans construct at lower costs of about R5,000/m2 while other quality-oriented homeowners are willing to pay an excess of R20,000/m2.
Besides intricate design details and quality, the difficulty of construction also affects the end amount to be spent. Registered quantity surveyors are a reliable source of building costs. Historical data is also helpful if you can access materials with information on prior constructions surrounding your site. Historical data concerning the surrounding of your preferred site of construction is also important. Historical data and surveyors help estimate the average cost of a proposed building. Different components comprise the building cost, and here is a breakdown;
- Construction cost
The cost includes expenses incurred when setting up a building structure. Construction costs include materials such as bricks, cement, sand doors, plaster, windows, and paint among many others. Your contract will include all these materials necessary to establish the basic shell of the building structure.
- Specialist items and PC amounts
PC amounts comprise financial allowances covering unconfirmed details during the allocation of tender. Such items include a specified rate for every square meter. On the other hand, specialist items are excluded by the main contractor. Such include essential items such as cupboards, light fittings, kitchen, and bathroom fittings among other accessories. The PC amount, alternatively called the prime cost, should be inclusive in every one of these items to give realistic building expenses.
2. Professional fees
Different professionals are necessary for the completion of your project such as quantity surveyors, architects, land surveyor, structural engineer, electrical and mechanical engineer, and geologists among other relevant specialists. Architects are fundamental when building a house because of the leadership role. Quantity surveyors are also crucial in the early estimation of building expenses. Interior designers are also useful professionals when building a house in South Africa as they will help make your dream home exactly as you desire.
3. Other project costs
Besides material acquisition, building a house will involve project costs such as:
- Plan plotting expenses
- Architect disbursements
- Plan printing expenses
- Travel and accommodation for remote sites
- Submission and approval expenses
- Estate approvals
It is always challenging to state the exact amount of money to be used in setting up a house because of varied preferences in the quality and choice of materials.
How much does it cost to build a 3 bedroom house?
For a spacious and beautiful three bedroom house the price variation ranges between $150,826 and $434,187. The cost of building a 3 bedroom house often varies considerably and may be lower or higher depending on your budget, site of construction, availability of materials, and desired quality. However, the average of new houses continues to rise on a year to year basis. For instance, Cape Town homeowners who built at the price of R5,967/m² in 2015 later incurred R6,417/m² in 2016. The current year to year rise now stands at about 7.5%.