How much does a house cost?
A case Study exploring the actual costs of a building project.
So as to give you a general idea of the agents and costs involved into the process of building a home a case study will be developed as a reference. The values here mentioned are mainly averages but they should serve as a guideline to help you come up with an estimate of how much your new house will cost.
1. The plot of land
The initial step is, of course, acquiring a plot of land. According to the 2014 statistics from the Belgian Federal Government, the average price per square meter of buildable land in Belgium was just under €120/m². Although this figure is somewhat outdated and exhibits significant variation, ranging from an average of €622.09/m² in Brussels to around €50/m² in the Walloon area, let’s consider settling in the Brabant Walloon province for reference. If one finds a plot for €200/m², with sizes typically around 800 m² due to council restrictions counteracting developer pressures, the estimated cost for the land would be €160,000. Additional taxes and registration fees, averaging around 15%, amount to an extra €24,000. Therefore, the total expenditure for the plot of land can b estimated at €184,000.
2. Determining the surface area to be built
Certainly, individual needs and requirements vary, but for the purposes of this exercise, a detailed example is provided here. The intention behind this example is not only to guide through the exercise but also to offer a preliminary estimate of the surface area one might need to fulfill their needs. Many individuals not immersed in the building sector often struggle to determine an appropriate number (or surface area) to meet their requirements. Furthermore, this example can serve as a benchmark for future references, allowing individuals to obtain a rough estimate if they wish to scale up or down. In this instance, a 3-bedroom house with 2 bathrooms will be considered for the example.
Programme
Kitchen
Dining room
Living room
Main bedroom
Second bedroom
Third bedroom
Bathroom 1
Bathroom 2
Circulations
Total
Width
3.00
3.00
6.00
3.00
3.00
3.00
2.00
2.00
–
Depth
5.00
5.00
4.00
5.00
4.00
4.00
2.00
1.50
–
Surface
15.00
15.00
24.00
15.00
12.00
12.00
4.00
3.00
30%
130.00
3. How much does it cost to build?
For detailed pricing information on materials, construction works, and industry professionals within the Belgian context, consulting the “livios” (in French) database is recommended. These figures and considerations cater to individuals undertaking the construction of their own houses.
In the context of this exercise, a fixed budget of €1600/m² is established, positioning the building costs for the aforementioned house at approximately €210,000. This cost is typically determined by the client based on their needs and resources, with the architect evaluating its feasibility.
4. How much do architectural fees cost?
Augspach Architecture determines its average fees for a new-built home based on the home’s size (see our services area for more details). Given the diverse nature of projects and their complexities, we meticulously tailor our fees to each client and project. During contract drafting, we systematically consider various factors to identify potential cost reductions without compromising quality. This individualized approach is undertaken with each client, ensuring a thorough understanding of their specific needs. It’s worth noting that some individuals may be uneasy with architects charging fees relative to the project’s total costs, perceiving it as a conflict of interest. At Augspach Architecture, we prioritize openness to negotiation on this aspect.
5. Who are the other agents involved and how much do they charge?
Depending on the scale of the project one would probably also need:
- An expert surveyor
- A Health and Safety coordinator
- An engineering office for everything related to the HVAC (heating and ventilation) systems along with the sanitary installation
- A structural engineer
- A PEB (performance énérgetique des bâtiments)
- An interior designer(optional in most cases)
This should not be a cause for concern, but it should be taken into account the moment a contract is drafted with the architect. Many architectural offices include these services into their fees, but most don’t, unless it is specified. We at Augspach Architecture may include the services for the engineers into our fees and we are more than willing to provide interior design services.
6. Conclusions
For our hypothetical case, the total costs come up to:
1. The plot
2. Taxes and registration
3. Construction costs (hard costs)
4. Service fees (soft costs)
5. Total
€ 160.000
€ 67.000
€ 185.000
€ 20.000
€ 430.000
37 %
16 %
43 %
4 %
100 %
When outlining the program requirements and budget, it is more prudent to allocate a small budget to a smaller space than attempting to spread the same budget across a larger area. Opting for the latter often results in unfinished projects, leading to dissatisfaction for both the homeowner and the architect, creating tension. Even if the project somehow proceeds, it typically involves compromising the quality of finish materials. In such cases, the selection of materials is no longer a real choice but rather a compilation of the cheapest options available, which can prove costly to replace later. It is both logical and advisable to establish a fixed budget for different elements, and a skilled designer will discern, based on the project, where it is essential to allocate more resources and where savings can be made. However, this decision should be an integral part of the design process and not the outcome of budget cuts.
7. Financing
If one should be so lucky so as to be able to enter this whole endeavour with 30% of the total project costs, meaning roughly about €140.000 that should mean that € 320.000 should still be financed. If we divide this outstanding amount into 240 months for 20 years the capital to be repaid on a monthly basis is of €1350 and if the mortgage is at a fixed rate of about 1.75% the interests would be another €450/month. Making the whole project cost € 1.740/month, after the initial down payment of €140.000.
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