Building Costs
To determine the costs involved
in building a house is no easy task, simply because
of economical phenomena like inflation and price
escalation. There are so many different factors
affecting the cost of building a house, you just
as well ask yourself how much does a car cost?
The prospective house owner should therefore at
least be aware of the different costs involved
when building a house:
The cost of the property itself can vary considerably
and many factors can play a role, including location,
slope, view, zoning etc. Fact of the matter is,
you pay for what you get.
Apart from the purchase price of the stand, the
property must be registered in the buyer's name.
All property in South Africa is registered by
the central authority in the Deeds Office, and
transfer of ownership must also be registered
there, by means of a Transfer Deed. This is done
by a competent person, usually a lawyer, and a
transfer fee is payable, as well as a fee to the
lawyer. If a prospective owner of land can not
afford to buy the property for cash, he/she can
apply for a bank loan to buy the property. This
is called a mortgage bond, because the financial
institution offering the bond will take the property
as security, should the owner be in default of
payment. This mortgage bond must also be registered
in the Deeds Office as Mortgage Deed, and a mortgage
registration fee is payable.
inhouseplans.com prefer not to list transfer
fees and mortgage bond registration fees here,
due to the varying nature thereof. Prospective
owners are advised to contact a proper qualified
person in this regard.
Before building work can commence, the stand
must be provided with services connection points.
This includes connection points for water, sewer
and electricity. The costs for these connections
vary amongst local authorities, and will be provided
by the local authority on request.
The next cost is that of the building plans and
the approval thereof. The prospective home builder
can either draw up his/her own plans, or pay somebody
else to do it, or opt for the easiest way, namely
to buy the plan of a dream house right here on
the inhouseplans.com website! This is our
business, and customers can choose from a wide
variety of architect-designed house plans, at
extremely competing prices. Apart from the cost
to obtain a suitable building plan, the next cost
involved is the plan approval fees payable to
the local authority. It is not possible to list
those cost here, because it tends to vary considerably
amongst local authorities.
The actual building costs are by far the main
component of the total costs. This usually consists
of material costs and labour costs. Due to the
continuous escalation in building costs, it is
extremely dangerous to list typical building costs
here. This may also vary from city to city, and
will also vary depending on how luxurious the
owner intends to build, and what degree of finishing
is required.
For more luxurious houses and finishing, the
average unit price can easily be R4,000 to R8,000
per square meter, but it is the opinion of inhouseplans.com that around R4,300 per m² is a realistic average
for a typical suburban house of 200m² during the
year of 2008.
During the building process, it may also be required
to make use of other professional disciplines
that will involve professional fees. An owner
might for instance have to use the services of
a professional engineer to design a reinforced
concrete slab, or a land surveyor to point out
the exact erf boundaries. Remember to check out inhouseplans.com' business directory for
a list of companies specialising in design and
supply of reinforced concrete slabs.
The last category of costs may include extras
such as landscaping and gardening, a pool and
paving.
Apart from the actual building costs, and the
abovementioned extras, all other costs are pretty
much fixed. The only variable element where an
owner can save costs, is in the actual building
costs. Even here the materials component is pretty
much fixed, and one can only try to save on the
labour element and that portion reserved as profit
for the builder.
If an owner wishes to make use of the services
of a building contractor, a profit margin will
most likely be added on all material and labour
costs. Although this is a safe way to go for the
layman, it is also the more expensive. An alternative
way is to appoint an architect or building consultant
to look after the whole building process, but
then the owner must be prepared to pay another
mark-up on all costs.
If the owner possesses the necessary knowledge
and skills, he/she can become owner builder and
appoint his/her own sub-contractors to do the
job. Going this way, the owner cuts out all profit
taken by somebody else, and will only have to
pay the material costs and the labour costs of
the sub-contractors. Following this route, one
should however take into account the time that
will be spent on the project, which means time
away from one's own income generating business
or work.
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Building cost 
