In my earlier blog “Location Location Location” I made mention of detracting factors on the land that can impact its value. What a lot of potential buyers don’t realise is that a lot of these very same factors can sometimes drastically impact the cost to build a home on the land.
The obvious example of this is a block with a heavy slope. We recently designed a home specifically for an extremely steep block, and there was a significant extra cost for construction due to the amount of earthworks and retaining walls required. The benefit to the owner despite the additional cost is that usually sloping blocks have great views (see the attached photo).
Two of the more common factors impacting construction costs are bushfire and acoustic ratings. For bushfire (depending on the rating), the house may be required to have things like fire resistant screens and external materials. For acoustic, the house may need things like additional insulation or sound blocking external materials, even double glazed glass windows. Typically, it is possible to design the home to mitigate the amount of acoustic proofing (and therefore extra cost) the house requires. Placing the garage in front of the source of the noise (typically a main road or train line) is the most common method.
One of the other common factors is covenants (which I will get into in a seperate blog) which can impact on the cost via the facade of the home you need to build, amount of landscaping required, and a number of other factors. Most estates have a covenant, and most covenants are basically identical, but nevertheless it is important to look at the covenant and make sure your builder has accounted for its requirements.
Contact Equity Build Homes for more information about potential costs for building on your block.