After evaluating your various financial resources, it is time to calculate your construction budget .
But remember, there are several expense items to consider in your budget .
Don’t panic, we’ll send you a list of expense items that will help you estimate your budget :
The cost of the land : the price can vary depending on its location, whether it is in the city or in the countryside, whether it is close to all amenities or the ring road, whether the land is of good quality or sloping, etc.
Land preparation and development : the land will need to be prepared before building your house (clearing work, uprooting trees, clearing brush, creating an access path, etc.). Remember to take into account the costs of connecting the land to the various networks such as water, electricity, sanitation (total sewer), etc. for the proper functioning of your new house.
The boundary marking : will be carried out by a surveyor who will precisely establish the boundaries of your land between your neighbor and yourself.
The soil study : will be carried out by a geotechnical engineering office which will allow us to understand the nature of the soil in order to best adapt the foundations of your house.
Notary fees and land taxes : you will also need to take into account transfer taxes, notary fees and expenses related to formalities.
The cost of building a house : you will need to take into account the project management, construction materials, labor, permits, interior and exterior finishes, equipment, as well as various insurances (such as damage and construction insurance).
Here is an article from Qualitel that answers this question: What insurance should you have when building a house?
Allow for a margin : for unforeseen events that may arise during the work on your house.
Financing construction of house two women office computer
Real estate loans and possible assistance for building your house
After establishing your own personal contribution (which includes all of your income and financial commitments) (such as your current loans, the rent you pay, your taxes, for example). These financial commitments will help determine your debt ratio regarding your personal contribution, which will correspond to the amount you can invest in your home without resorting to a bank loan.
Here are the different financial aids that you could potentially benefit from:
The zero-interest loan : for first-time buyers, it allows you to borrow without interest, to finance up to 40% of the total amount (this loan remains possible until October 2023).
The social accession loan: which is a state-backed loan dedicated to people with modest incomes.
The housing action loan : if you are an employee of a private non-agricultural company with at least ten employees.
The home savings loan: which will allow you to benefit from advantageous conditions for the construction of your house.
There is also local authority assistance .
Do not hesitate to find out what assistance you may be entitled to; ).
With all this information in hand, it’s time to calculate your borrowing capacity . It’s important to consider that you won’t be able to exceed a certain percentage of your (annual) income, also taking into account your debt ratio . Obviously, depending on each profile and file, your rate can change and be increased according to your income and your ability to negotiate with your banker.