Are you considering building a house? Building a house is a major investment — so it's also important that you're well prepared, so you avoid unexpected expenses and budget overruns.
You can read more here and get a detailed overview of the various costs associated with building a house — that way you get a more realistic picture of what it will cost you to build a house.
At Bomae, we take you by the hand through the entire purchase process. With expert buyer advisory services, you get, among other things, a thorough technical building inspection and/or advice and guidance around your dreams and options. At the same time, we can help create an overall overview of your finances.
Table of contents:
- The costs of a self-build house
- Land costs
- Building permits and insurance
- Contractor, architect and engineering costs
- Building materials
- Energy optimisation of the house
- Tradesperson costs
- Overview of the costs
- Does it pay to build new rather than buy?
- Help with financing and loans
The costs of a self-build house Building a new house requires careful planning and budgeting. To get a truly realistic estimate of the costs, you also need to take several factors into account — this could be the size and location of the house, the materials you want to use, and whether you want an architect involved in the drawings.
Some building companies can offer a standard house at a standard price — with the caveat of extra costs.
As a rule of thumb, you can expect a price per square metre for new-build to be around 11,000 kr. per sqm, with an additional 1 million kr. for further costs that will give the home a more personal touch.
Land costs
One of the biggest expenses you'll run into is the cost of buying the plot of land you're going to build the house on. The price of the land varies depending on location, size — and of course also the current market situation. There may also be additional costs in the form of soil surveys.
Building permits and insurance Before you start construction, you need to apply for building permits from the relevant authorities. It's also particularly important that you have insurance in place, so you're covered if damage should occur during construction. Before excavation work begins, the plot must be surveyed and marked out, and this will also cost a sum of money.
There may also be an application fee to the municipality, which can vary from municipality to municipality. Before the project is fully complete, the municipality will often require that the work on the house be checked by an independent third party.
There will be expenses and fees associated with, among other things, connection to water, wastewater handling and electricity. You'll need the necessary utilities, installations, and sewerage and drainage. These tasks are also referred to as "site development" (byggemodning) — and the price will depend heavily on the plot and its location.
The condition of the building plot is important if you want to reduce costs. If a house has previously stood on the plot, the plot is already "developed," and you won't need to spend money on new installations such as sewerage and ground levelling.
There are also some fixed costs for things like land registration (tinglysning), mortgage deeds (pantebreve), and fees for a solicitor and estate agent.
Contractor, architect and engineering costs
After securing a building plot, the next step is to settle on the design of your house and get building plans and drawings prepared.
When you're going to build a house, it can also be a good idea to use an architect or engineer, who will help produce a design and ensure the construction meets all building regulations and safety standards. The costs for the architect and engineer will vary depending on the scope and complexity of the project.
Building materials
The building materials you choose also make up a significant portion of the construction costs. If you choose to build in concrete and brick, it will often be more expensive — but these are also materials that will require less maintenance over time.
Energy optimisation of the house
Many people today are interested in energy-optimised and sustainable houses. If you want to build a house with a focus on sustainability, there may be extra costs associated with, for example, installing solar panels, adding extra insulation to the house, and installing other energy-efficient appliances.
Tradesperson costs
Tradesperson costs make up a significant part of the construction costs. They will include the wages for the various tradespeople involved in the construction, such as carpenters, bricklayers, plumbers and electricians. The costs can vary depending on experience, qualifications and the scope of the work itself.
Overview of the costs It's important to note that the prices given are approximate and will therefore vary depending on location, size of the house and choice of materials.
The figures in the table above are based on the most recent prices and estimates.
Does it pay to build new rather than buy? It naturally depends a lot on the situation whether it pays to build new rather than buy an existing home. But the cheapest solution is a standard home purchase, where the house is ready to move into. If the existing house needs a complete renovation, then it will pay off to build new rather than buy used. If you choose a prefabricated/standard house (typehus), you can more easily make sure the construction doesn't exceed the estimated price.
Help with financing and loans
There are a number of financing options, such as loans and mortgage loans, that can help cover the costs of building a house. It may be necessary to draw up a budget for the building project before you apply for a loan offer.
Get help from Bomae to secure the best offer on a home loan, bank loan or mortgage loan.
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