Everyone wants a house where they can live comfortably with their family. It is common to choose the easiest option and buy a property already built thinking it is more economical. But this is not always the case, prices do not vary so much between building a custom house or buying one already built. So how much does it cost to build a house from scratch? Continue reading, in this post we will explain in detail the expenses incurred.
How much does it cost to build a house from scratch? The plot
In the first place, an aspect that decreases the cost of construction is owning the plot. Only the purchase of the plot and the other associated costs (related to building and construction licenses) represent approximately 40 to 50% of the total cost. This may be due to the scarcity of available land, which means that prices, despite the fall after the crisis, remain very high.
But the purchase of the plot is not an easy step, it is necessary to conduct an inspection of several areas of the area where you want to buy to know the average price, the conditions of the land, and payment conditions. After making the decision it is necessary to go to the Town Hall that corresponds to you according to the area and check that the land is suitable for building.
Also, you must check the ownership, location, accessibility and the measures in the deeds of the land and verify that you have no debts. Also, determine if you have basic services (drinking water, sewage, electric power, street lighting)
After choosing the most optimal terrain, the one that covers our needs, you must go to the competent body and inform you about the expenses that are generated as: fee of the registrar and notary (0.5%), Tax of Patrimonial Transmissions (7-9) %) according to the area of residence, VAT for self-promotion (10%), VAT for technical fees (21).
You can take a look at the articles on the choice of land:
How to build a custom house?
When we decide to build a custom house it is necessary to hire the services of professional people (architects, surveyors, etc.) to whom we will communicate our interests and needs and will be in charge of designing the house we have always wanted, for whose work we should pay an approximate fee of 8%.
The second most important expense in the construction of a house is the execution of the work, which covers 40% of the budget, and covers costs of materials, labor and taxes.
The first thing that is done in the construction stage is the topographic study of the land, which has an approximate cost of 250-400 euros, as well as a geotechnical study with a cost of 650-800 euros.
To build the project it is necessary to have the regulatory permits and be up to date with the taxes stipulated in the law for the construction of works, such as: electric current and water supply. In this last aspect, the position will be occupied by the architect who was hired.
By having all the legal requirements proceed to the hiring of a construction company who will be responsible for executing the work. To do this, we must request a budget from various companies to choose the one that best suits our needs and budget.
This contract budget is 19% higher than the budget for the material execution of the works, since 13% are included in the general expenses and 6% for the builder.
Before starting the construction of the work by the selected construction company, it is necessary to have the works license issued by the City Council. The start of the work must be communicated in writing and a safety plan must be submitted. It is mandatory to have a full-liability civil liability insurance.
When the construction phase is completed, the architect has to sign the certificate of completion and will obtain the license of first occupation and the certificate of habitability in the Town Hall. These are small administrative expenses that must be taken into account.
In the same way, it is necessary to cancel the tax on constructions, installations and works, and a deposit for the management of construction and demolition waste, which will be returned upon completion of the work. The public deed of new work will be drafted and registered, generating an expense of 0.5% of the value of the home.
The budget is divided as follows: 45% purchase of land and expenses that it carries; 40% for the execution of the work and some taxes it generates; 8% professional fees and 7% for the payment of taxes and licensing procedures.
Arquifach, architectural studio in Alicante: advice on the purchase of the plot
Arquifach, architectural studio in Costa Blanca, requests and interprets the urban planning report
It is important to relate and interpret all the information gathered in the urban planning report and also request additional information that is not usually included in the standard requests. As a general rule, they are not related provided that some concepts are specifically requested, such as how the porches and the basement and semi-basement floors are calculated or how the plot can be transformed as far as land movements are concerned (clearing and filling), for perform their development.
Contact Arquifach, architectural studio Alicante, without commitment. We will assess the feasibility of your project and offer advice on the construction of new single-family homes or tourist apartment buildings. It has the support of a specialized team in Costa Blanca.