When considering building a brand new house on a vacant block of land, you’ve probably come across the term, site costs. Those that have not, here we discuss what site costs are and what they include.
When obtaining a build quote, it’s important to understand all of the costs required to build your dream home or investment property. A full turn-key build has become widely popular as the price is fixed and includes everything necessary for you to either move in or lease without any further work. A full turn-key also includes site costs within the price eliminating any uncertainty.
What are site costs?
Site costs are the expenses associated with getting a block of land ready to build on. The site must be carefully prepared in advance to meet the requirements of the constructing the slab. The slab will set the foundation of the structural integrity of the property.
- Site costs include a number of works:
- Site preparation
- Earthworks
- Engineering requirements
- Council applications and approvals
- Build permit applications and approvals
- Levy costs such as bush fire, infrastructure etc
Are site costs the same for every block of land?
Site costs will not be the same for every block of land. This is because not all block are made equal.
Site costs should generally include the following:
- Testing the soil, surveying the lot of land and structural engineering assessments
- Levelling your block
- Upgrading foundations to be in line with the engineering requirements
- Developer guidelines (depending on the estate this may cost tens of thousands)
- Council requirements
- Bushfire attack levy
- Termite treatment
- Rock removal if required
- Arranging sediment control measures to prevent any pollution going down drains
- Connecting water supplies, drainage and other necessary services
It is critical you understand your builders quote. Some of the above site costs can be expensive, particularity if the block isn’t flat or if it has excessive rock or issues with soil. Builders may pass these costs on to customers. As highlighted earlier, a full turn-key includes site costs within the price eliminating any uncertainty.
The photo (above) is an image of a brand new completed house.
How are site costs calculated?
This is a question you should ask your builder. Builders calculated site costs in a similar way. However each builder may deem the cost differently, while other builders may find the site less problematic to others.
Site costs will increase based on the block of land complex issues to construct on. For example, the more problematic the soil or the greater the slope of land, the higher the site costs.
In conclusion, do your research. Obtaining advice from a property advocate will help you make the right decision. Most should be unbiased as they have access to many builders who can cater your needs. If you need more help, please feel free to click ‘how to choose the right builder‘. It has some meaningful information to help you complete your due diligence.
If you’d like to learn more, please don’t hesitate to contact us. We can help arrange a build quote or a full turn-key house and land package.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
October 2020
