It is critical that you are aware of all of the costs associated with building a home. You will need to keep a tight rein on expenses and ensure that you have budgeted correctly for the overall project. That dream home can turn into a bottomless money pit if you don’t factor in all the potential costings, work to a strict budget and employ the right professionals.
The budget for a new house will be split roughly into two parts – the amount you pay for the section and the amount you pay for preparing the site and building the house.
While the new house is being built, you will have to live somewhere so there’s also the cost of either rent or two mortgages to consider. You will probably pay for the section up-front (unless it’s a design and build package in a new subdivision) and will pay for materials as they are used as well as making progress payments to the builder.