Financial considerations
When building and decorating a house a lot of direct and indirect costs are incurred which one needs to take into consideration. The initial cost of appliances, home lighting, home heating, home cooling is the less significant part of the cost. One needs to ask: How much energy will my refrigerator consume per year? What about our airconditioning units? How about all my household appliances and lights put together? Click on the link available in this section to calculate your energy costs and carbon footprint!
Factors affecting price
There are several factors which can affect the cost of building, renovating and designing a home. This goes way beyond the price of raw materials themselves. Planning, delivery and labour costs also have to be considered. You must also consider the cost of running the various appliances, including heating and cooling equipment, you install.
Planning and design costs
When a young couple or family decides to build or renovate their home, they will likely do a lot of research to choose their ideal design. They then set off to consult with the experts - architects and designers - to find out what is feasible and realistic and how much it will likely cost.
Architect and designer fees can be fairly high, and the more visits you or they make, the higher the bill. It is alsways good to be very well-prepared before such meetings with sketches, photos and even a good set of questions.
Material costs
Young couples and families building or renovating or refurbishing homes learn quickly that material costs can make or break a construction project. With so many technological and creative innovations, the supply of materials whether for structural purposes or embellishment purposes is huge. One has to make informed choices by consulting with experts in the area, with relatives or friends who have been through a similar process recently and even with the suppliers themselves.
The cost of building materials and basic plumbing and electrical fittings is often dictated by the market. Often, the greater the demand, the lower the price. So it is wise to shop around to get the best deal.
A well-known reality is, however, that contractors and suppliers will try to upsell their clients on wall finshings, floor finishings, windows, doors, bathrooms and furnishings that can increase home building, renovating and designing costs by thousands of Euros. One should look carefully at the differences between similar materials when building a home. For example, laminate floor tiles and kitchen counters have advanced in recent years to resemble marble and granite at much lower costs per square metre than the real thing.
It is always wise to be on the alert and time shopping around to take advantage of discount periods. One can often get very good deals on ’last year’s’ or ’last season’s’ stock which is still of good quality and modern (if that is the style you seek).
Delivery expenses
Every door knob, door and drawer that is used in construction or renovation is delivered from a local or foreign supplier. Service providers incur delivery costs that are generally passed to their clients. These costs include the fuel used to deliver or collect materials, as well as the wages of the driver and delivery personnel and a small amount of markup to cover vehicle wear and tear (if local). One should work with service providers contractors who have connections to local suppliers to keep delivery costs down. Materials which are flown or shipped in will likely cost more. Alternatively, where feasible, one can go directly to local stores and negotiate own pick-up or free delivery of items in the final price.
Labour costs
Labour costs change as excavators give way to builders, roof layers, insulators, plumbers, electricians, window and door installers, interior designers, carpenters, soft furnishings maker etc. All these people may be involved in the construction or design process. They earn different wages. Again it is best to know the standard going rate before signing any contracts.
Cost of running heating and cooling equipment and other appliances
Your choice of heating and cooling equipment (e.g. solar water heating versus immersion heater, ceiling fan versus air conditioning), as well as the appliances for your home (freezer, fridge, washing machine, oven, kettle etc.) will greatly impact your energy bill.
Choose energy-efficient equipment and appliances with an A+ energy rating, and use electrical equipment as little as possible.
To read more about choosing and maintaining heating and cooling equipment, lighting fixtures and appliances in the home click here, here and here.
Click here for an online calculator which will help you estimate energy consumed by different equipment and appliances. You can also calculate your household’s total energy consumption and total carbon footprint for one year.
