10 Costs to Consider When Building a New Home in London Ontario tips, House refurb guide, Online Residential Advice

10 Costs to Consider When Building a New Home in London Ontario

18 May 2021

Building the home of your dreams is an exciting adventure for any homebuyer. You get to choose a layout you love with the features you want, colours that make you feel at home, and no one has ever lived there previously. When researching new home builders in London, Ontario, you want to ensure you’re hiring a reputable company that will provide you with an excellent experience. Even with the most experienced and best builder, there are some additional costs you need to plan for when building your dream home.

  1. Upgrades

When you’re choosing your new home, your builder will likely have some upgraded features included in the base model, but if you want to go all out, you’ll need to budget for the extras you’re adding in. Typically flooring, appliances, finishes, and other extras will cost you money, and those are what they’ll feature in the show suites. If you can afford to get everything you want in your home, and you feel it’s worth the investment, they certainly add value to your home if you choose to sell or rent it out down the line.

  1. Fees

In London, there are fees and permits that you’ll need to cover when you choose to build a brand new home. It’s essential to have some money set aside for those expenses. Fees for permits range based on the size of your property. Your builder may include all of these in the price of the home, so double-check with them.

  1. Taxes

The City of London will have property taxes on all the properties in the city, but these tend to be a bit higher for new construction homes. You can consult your builder on what similar properties pay in tax or contact the city directly.

  1. Landscaping

Many new builds don’t come with the landscaping as a standard feature, aside from front yard sod. You could potentially be responsible for landscaping your backyard, plus putting up fences, decks, or trees and shrubs. Talk to your builder about what’s included and start a budget for a professional landscaping company to put the finishing touches on your dream home.

  1. Preparation of the Site

Before the building begins, the site of your future dream home will need to be excavated, cleared, and drainage indicated, especially if you’re adding a basement. The builder could encounter some objects underground like giant rocks, powerlines, and pipes. You’ll be responsible for paying for if they need to be removed. You will want to clear up who is responsible for what before building.

  1. Upgrades

Suppose you decide you want to go a different route during the building of your home and you want to make some changes. Your builder may have a strict policy around how much notice they require to make changes, depending on how labour-intensive they are. If you want some extra lights added or some significant changes to the kitchen, you may be stuck with what you’ve already agreed to. Most of the time, the cost for all the materials is taken care of before building, so you may be on the hook for an extra bill if you make notable changes halfway through.

  1. Unexpected issues

Human error will almost always happen when building a home, and there are some details that will get overlooked. You may find cracks in the siding, tiles that become broken, or other defects. Any common problem in an older home can happen in a brand new one too. You may want to pay for two final inspections to make sure that nothing is ready to break. Discussing your warranty is important to know what is covered and what is something you’ll need to pay for if it breaks down.

  1. Furniture

Many people opt to buy new furniture for their brand new home, but especially if you’re upsizing and have plenty of extra room, you’ll want to pick up some extra furniture.

  1. Extras

If you have many windows in your new home, you will need to budget a substantial amount for window treatments. Whether you opt for blinds or curtains, they are considered an extra. Your builder will let you know what is not included in the home price for you to budget for extras.

  1. Unanticipated expenses

Things can always go sideways, so it’s essential to have a safety net for expenses that pop up that you weren’t expecting. It’s recommended for you to have at least 5% of the cost of the home set aside just to be safe.

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photo : Ken Lund from Reno, Nevada, USA, CC BY-SA 2.0 https://creativecommons.org/licenses/by-sa/2.0, via Wikimedia Commons

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