The third step towards building your new custom home is to determine the total cost.

When determining your budget, you will need to consider five components that make up the total cost of building a new home:

  1. Land
  2. Soft Costs
  3. Site Servicing and Site Works
  4. Construction Costs
  5. Design and Engineering

Land: In the area surrounding the GTA (Greater Toronto Area), land costs have become a very significant part of the overall cost of building a home. Typical costs for a lot now range from $250,000 (town lot in Fergus) to $600,000 (2 acres in Caledon), depending on the location, the amenities, and the features. To establish an approximate cost for the land, it is best that you search realtor.ca or local papers, and meet with a good realtor. A good realtor knows the available land in the area, and will be able to give you some initial, realistic costs for the land that you will need to include in your budget. If required, Rockhaven can recommend a realtor, to help with your land search.

Soft Costs: Soft Costs include all the permits, fees, development charges and HST that are required. Soft Costs are very dependent on your building location, both in number and cost, particularly in certain areas. For example, did you know that the Development Charges for an un-serviced, country lot in Caledon are currently almost $43,000? Development Charges can be found on each Town's website, and are made up of the Town, the Region, and Education charges. Please note if there is a house on the property, Development Charges do not apply. However, there will be costs for the demolition and removal of the house. In addition, the number of permits required to get your Building Permit continues to rise. For example, to build on a serviced lot in Georgetown typically requires nine separate permits, each with their associated costs.

Site Servicing and Site Works: As you know, your new home will require water, hydro, heating and sanitary services. Either the local utilities will provide them, or you will have to build/provide these services on site (i.e. well, septic system, propane tank). Your new home will also need a driveway, and depending on the lot, may require the export or import of dirt, and the demolition and removal of existing buildings or trees. Sites also vary widely, in size, topography, features, type of dirt, and distance to utilities. In turn, the total cost for Site Servicing and Site Works can vary from $40,000 to $80,000, and for deep lots, even higher.

Design and Engineering: To be able to build your home, you will require design and engineering, for both the home and the site. These drawings capture your dream, but they also enable a Building Permit to be secured. In addition to the architectural drawings, you will also require structural engineering, HVAC calculations, roof and floor layouts, a servicing design, and a site and grading plan. A complete package for the design and engineering of a new home and the site ranges from $6 to $10 per square foot.

Construction Costs: The cost to construct a new home varies widely, and depends on a number of critical factors, including the size, the shape and the style of your home, as well as the design, the finishes and the features that you choose. Unit costs for a large, simple home with inexpensive features and finishes can be built for as low as $115 per square foot plus HST. A small, more complex home, with high-end features and finishes can cost as much as $350 per square foot plus HST.

Example: Now let's consider a new home, built on a country lot in Georgetown, where the construction costs for the home are $500,000 plus HST. The total costs for this home would be approximately:

  1. Land$400,000
  2. Soft Costs:
    1. Permits and Fees$10,000
    2. Development charges$45,000
  3. Site Servicing and Site Works$50,000
  4. Design and Engineering$20,000
  5. Construction$500,000
  6. HST (on 1, 3, 4, and 5)$125,000
  7. Total cost$1,150,000

As you can see, the actual cost to construct the home is only 44% of the total cost. Soft Costs and HST are 16% of the total, and the land represents 35% of the total cost.

As an experienced design-builder, and having built in 11 different municipalities, Rockhaven Homes is aware of all of the actual costs associated with constructing your new custom home, including the cost to actually build the home. Rockhaven reviews your requirements, your site and location, the design and features you are looking for, and only then provides an accurate and honest total project budget.

As a final comment on costs, please note that "custom" does not automatically mean expensive. Rockhaven can build your dream home, whether it is modest or majestic, as we customize each home to our client's dream and their dollars.

As noted earlier, Rockhaven's goal throughout the process is to minimize surprises and to maximize value. Over the years, building a quality, custom home by a reputable builder, has proven to be a very good investment for Rockhaven clients.

> continue to the next step towards your new home

Rockhaven Homes: 13106 22nd Side Road, RR # 1, Georgetown, ON L7G 4S4   Tel: (905) 873-1582 | info@rockhavenhomes.ca
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