With some frequency, friends, acquaintances or clients ask us how much it would cost to build their own home.
The fact of building your own home has, in our opinion, only one advantage: being able to choose its distribution; although, from our experience, it is never entirely possible to distribute the property exactly as it is projected. And there are a number of conditions that are not always compatible with our wishes. For example: the shape of the site, structural requirements or municipal regulations. These are, generally, the factors that most affect the final design.
The objective of this article, however, is not to analyze this question, but simply the costs of execution and legalization of a home.
First of all, we have to buy a house to tear down or a lot. In this example we are going to opt for the first option, since at least in our area it is the most common case.
We visited the website of a local real estate agency and found the following case:
500 m2 of plot with 300 m2 built € 120,000.00.
EXPENDITURE 1: THE INITIAL PURCHASE
Notary fees will be according to law; Therefore, the buyer, with respect to the notary's fees, will only have to pay the expenses of the first copy of the deed.
To determine both the notary and property registration fees, we use the OCU calculator, which gives us an approximation.
The IMTP, in general, is 8%; but cases are collected in which the rate falls:
| 7% in the transfer of property intended for habitual residence, if the real value does not exceed 130,000 euros. |
| 3.5% in the transfer of real estate whose real value does not exceed 130,000 euros when they are used as the purchaser's main residence and the latter is under 35 years of age, or 180,000 euros when it is used as the purchaser's main residence and the latter is considered a person with a disability with a recognized degree equal to or greater than 33%. |
| 3.5% provided that the purchaser is considered a member of a large family and the property is used as the family's habitual residence and its real value does not exceed 180,000 euros. |
| * Source: Junta de Andalucía website |
The basis on which we are going to pay this tax is the purchase price; That is, in principle we will pay 8% of € 120,000. But there is a minimum value on this purchase price.
To calculate this minimum value we have to visit the website of the Junta de Andalucía and have at hand the cadastral value of the house we have bought. In our example, this cadastral value is € 86,279.13.
Surrounded we have the minimum value of our purchase; from € 120,000 we have gone to € 232,869.88. On this value we have to apply 8%. In seconds, the property we have acquired has gone from worth € 120,000.00 to € 232,869.88, almost double.
| Floor | € 120,000.00 |
| Notary | € 47.27 |
| Property Transfer Tax (Junta de Andalucía) | € 18,629.59 |
| Property registration | € 131.99 |
| € 138,808.86 |
EXPENDITURE 2: THE PROJECT AND THE WORKS LICENSE
Once we have our land, we have to hire an architect and a technical architect, who will be in charge of drawing up the project and carrying out the construction management.
The house that we plan to build will have on the ground floor: two bedrooms with a dressing room, a double bedroom with a bathroom and dressing room, a living room and a large kitchen. The upper floor, for its part, will be made up of a diaphanous area, a bathroom and two offices. The total constructed area is 350 m2, and the rest of the plot will be for patios, garden areas, or swimming pools.
Normally, the family profile that opts for this option is already looking for a definitive house where they can have the greatest possible comforts and that is mostly developed on a ground floor. It is not often that a family buys a plot or plot to later build a house of 100-120 m2.
To determine the cost of the technicians and taxes that will be paid associated with the construction, the data that we will need is the Material Execution Budget, hereinafter PEM. Regarding the writing of this, we will have to carry out a geotechnical study, which can cost us an average of € 950. On the other hand, when calculating the PEM we will need the table of modules from the architects' association of our province.
In our case - a single-family house in between, urban typology, three nuclei -, according to the table, our PEM will have the following cost:
| € / m2 | m2 | amount | |
| 566,58 | 350,00 | 198.303,00 | home |
| 35,41 | 34,00 | 1.203,94 | courtyards |
| 70,82 | 116,00 | 8.215,12 | landscaped areas |
| PEM | 207.722,06 |
The amount of the technicians and their official schools is at least € 14,438.48. This item will depend on the technicians we hire, since not all professionals charge the same for their work, although as a starting amount it is quite adjusted to the average. The same did not happen a few years ago, since the calculation of the fees was carried out on 10% of the PEM. Currently the prices are somewhat cheaper.
The building license is made up of three concepts:
- Tax on constructions, installations and works: 4%.
- Town planning rate: 2.60%.
- RCD bond: 1%. This amount will be returned to us at the end of the work, after presenting the management certificates of the construction waste.
| kind % | PEM | amount | |
| Tax | 4,00 | 207.722,06 | 8.308,88 |
| Rate | 2,60 | 207.722,06 | 5.400,77 |
| Bail | 1,00 | 207.722,06 | 2.077,22 |
| BUILDING LICENSE | 15.786,88 |
But also, in our case there is a construction prior that we are going to demolish; we have 300 m2 built.
| € / m3 | m3 | amount | |
| 4,60 | 1.350,00 | 6.210,00 |
| kind % | PEM | amount | |
| Tax | 4,00 | 6.210,00 | 248,40 |
| Rate | 2,60 | 6.210,00 | 161,46 |
| Bail | 1,00 | 6.210,00 | 62,10 |
| DOWNLOAD LICENSE | 471,96 |
Adding, therefore, all these concepts - construction license and demolition, geotechnical study and project, and construction management -, we have a total expense of € 31,647.32
EXPENDITURE 3: THE WORK
This amount cannot be given exactly either, since it will depend in part on the materials we choose and also on the construction company. And it is that like the technician, not all charge the same for their work.
As starting data to calculate the execution budget per PEC contract, the PEM will be used as always, to which 13% will have to be added for general costs and 6% profit, and also VAT, 10% in the case of the houses.
General expenses are those indirect costs related to the execution of the work, which do not intervene directly in the construction process, but which serve as support or complement.
| PEC | ||
| EMP (including knockdown) | 213.932,06 | |
| CG | 27.811,17 | |
| BENEFIT | 12.835,92 | |
| SUBTOTAL | 254.579,15 |
When the developer is also going to be the future user of the home, the PEM tends to rise, since the qualities that are finally chosen, both for coatings and metal and wood carpentry, are superior. In addition, improvements are also usually added in terms of air conditioning, so to be as realistic as possible the PEM should be increased by at least 20%.
| PEC | ||
| EMP (including knockdown) | 256.718,47 | |
| CG | 33.373,40 | |
| BENEFIT | 15.403,11 | |
| SUBTOTAL | 305.494,98 | |
| 10% VAT | 30.549,50 | |
| TOTAL | 336.044,48 |
Water and electricity distribution / supply companies. If our home does not have supplies and we have to hire them again, we will have to pay a series of concepts to these companies. But if we also have to bury the distribution network that we had stapled to the facade of the house that we acquired, both the price and the problems soar. However, we will not address this topic now, which would be for more than one article.
| WATER | € 733.86 |
| ELECTRICITY | € 386.83 |
| CABLE HOLDING | € 4,598.50 |
| € 5,719.19 |
EXPENDITURE 4: FIRST OCCUPATION LICENSE AND NEW WORK DECLARATION
Once our work is finished, we must first apply for the 1st occupation license. Said license will be necessary both to contract the water and electricity supplies, and to be able to do the deed of our new home. This is a process as essential as that of the building license.
| FIRST-USE LICENSE | 207.722,06 | 1,30 | 2.700,39 |
| RCD DEPOSIT RETURN | -2.077,22 | ||
| DECLARATION OF NEW WORK AJD (Junta de Andalucía) | 207.722,06 | 1,50 | 3.115,83 |
| NOTARY | 180,12 | ||
| PROPERTY REGISTRATION | 435,89 | ||
| TOTAL | 4.355,01 |
In summary, and as a result of the sum of all the previous quantities, we have:
| EXPENDITURE 1 | 138.808,86 |
| EXPENDITURE 2 | 31.647,32 |
| EXPENDITURE 3 | 336.778,34 |
| EXPENDITURE 4 | 4.355,01 |
| TOTAL | € 511,589.53 |
We hope that with these data we have resolved your doubts about what it would cost to build the house of your dreams.
