Budgeting for a house or an apartment
A full budget includes land or property, additional costs and work, not just the headline price.
For a self-build house, separate land, planning, advisers, permits, contractor, utility connections, excluded work and furnishing. For an apartment include purchase, applicable taxes, legal fees, brokerage if used, inspection, renovation and moving. Enter VAT-inclusive amounts where applicable without adding VAT twice. Track paid and remaining amounts. Never count both a contractor subtotal and its detailed instalments.
A contractor costs 1,000,000: 300,000 paid and 700,000 remaining. Adding the subtotal again would double-count it.
Choose house or apartment and enter five cost categories.
Official source ↗Check your understanding
A cost has 100,000 paid and 40,000 remaining. What is its total?
- 140,000
- 100,000
- 40,000
Answer and explanation
140,000. Add paid and remaining once.
Flooring is already in the turnkey price. Add its full cost again?
- Always
- Only with a mortgage
- No; add only excluded work or approved extras
Answer and explanation
No; add only excluded work or approved extras. Double counting inflates the budget.
Continue learning
Who builds the home? Contractors and supervisors — A contractor performs work. A turnkey contractor coordinates a delivery package defined by the contract and specification.
Mortgage basics: principal, equity and security — A mortgage is a loan secured against property. Principal is the amount borrowed; interest is the cost of borrowing.
Contingency and construction cash flow — A contingency covers overruns; cash flow also checks when payments fall due and funds become available.