1. Working out your budget
When it comes to working out costs, the construction industry doesn’t make it easy. According to The Australian Bureau of Statistics, the average cost of building a home in Australia as of June 2018 was 1,270,80 per sqm. Of course, an average figure is hardly an accurate one, but it does give you a foundation from which to work.
Other experts will need to be consulted to determine if construction is feasible for your financial situation. In general, you will consult with a bank, real estate agent, investment consultant, builder, and architect.
Once you know your financial constraints for a project, you should then consult with a professional building cost estimator who can work with builders and architects to develop a financially feasible design.
2. Your goals – both short term and long term
Your goals will play a significant role in determining how much your outlays will be. If your short-term goal is to sell, then your focus will be on maximising your ROI.
If the project is going to provide a home for you and your family for the long-term, then it will generally come down to what you need in a home, versus how much you can afford.
3. The Sydney suburb you plan to build in
The suburb which you plan to build will play a significant role in setting the budget for your project. Any home construction, whether it be a home to live in or a development project to sell, requires that you carefully consider the suburb in which you are planning to build.
Overcapitalisation is always a risk, so you want to plan a construction that is in line with the property values of the area. Invest too much in the project, and you may lose out because you may not be able to attract buyers to the area who are prepared to pay the properties ‘real’ value.