The cost of building your dream home in Canada will vary between provinces, but there are other factors. Prices can range from $120 to $250 per square foot, so the average cost would be $185. This takes the estimated cost for a 2,000 square foot home in Canada to around $370,000. When it comes to Vancouver, the averages are higher, ranging between $430 to $1090.
Let’s provide you with the details and information as well as the necessary steps for constructing a home in Canada. This can help you to make the best informed decision for you and your household.
The Real Costs of Building a Home
Cost # 1 – Buying Land
Land is likely going to be your biggest expense when it comes to building a home. If you are looking in an urban area, you will find that land alone could cost as much as an existing home. This is why you often see real estate investors buying older buildings, demolishing them and rebuilding them from the ground up. But if you are willing to move out of the city and into a rural area, you will find land available at more affordable costs. You will be able to purchase a larger lot at a lower price, so you are left with more budget to build your dream home.
Cost # 2 – Preparing the Land
Now that you have sourced and purchased your land, you will need to clear any debris on the land. This could include rocks and trees, etc. Preparing the land also includes setting your foundation, and depending on where you purchased your land, you may have to connect water lines, add drainage systems and power lines. The latter tends to be necessary when you purchase land in rural areas that are still mostly untouched by civilization.
These tasks will vary in cost depending on the land itself. There are some properties that will require more work than others based on the time of year, the current market etc. If you want an estimate, you can give us a call so we can visit the property and let you know what you can expect to pay if you choose us as your builders.
Cost # 3 – Builders Risk Insurance
This insurance provides coverage for worst case situations. This cover is important during a construction project, and during renovation projects as well. When you do not have this cover, worst case scenarios can lead to major losses. Sometimes this loss may be minor, but sometimes it can be major, such as irreparable damage to the structure of your home.
What Does Building Risk Insurance Cover?
This type of insurance is ideal for when a building is being constructed. The insurance covers the building itself, as well as tools, equipment, machinery used in the construction of the building. The coverage offered during a renovation job is the same.
When a building is under construction, it is exposed to multiple risks. Many of these are due to uncontrollable environmental factors, such as high winds or even flooding. And sometimes it’s just an accident that occurs, causing major damage.
The policy price will often dictate the extent of what is covered or not. It also indicates what sort of damage is covered and what requirements need to be met before a payout can be made.
Cost # 4 – Obtaining Building Permits
To build your home, you will need permits from your municipality. The fees for these permits vary from city to city, and different areas may have different cost structure setups. You can find the current schedule of fees as of September 2022 for the city of Vancouver here.
Cost # 5 – Architecture Planning
It is recommended you reserve 12% of the estimated cost of your home for architecture fees. This cost again varies depending on where you choose to build your home. If you already have a home plan, this offers a reduction in costs by a few thousand dollars. If you would like to have a professional review your existing plan and make changes, this will incur a cost, but maybe not as much as having them create a whole new plan.
Cost # 6 – Construction Costs
The cost of construction mainly consists of materials and labor. The total costs have a lot to do with your choices of materials and the company you hire. As such, it is challenging to provide a cost estimate without knowing your specific needs, goals and dreams.
Contact us today so we can help you build the home of your dreams. We can help you every step of the way and have a team of professionals working alongside us to help make your dream of owning a home become a reality. We will help you every step of the way, where we can’t assist you ourselves, we will put you on to a professional that can assist you at any stage or phase of the home building process. Give SIlverBeam Homes a call today!