As an Architect, I agree with you 100%. However, your architect should have advised you on what costs to anticipate with the Estate, the appointment of an engineer, and Municipality. An unfortunately expensive experience. The drawings produced by the Engineer and the Architect are not just drawings, but detailed and accurate instructions for the contractor and the building team. Any deviation from the drawings could have catastrophic consequences. A heads-up for when you start building; 1. If your estate hasn't conducted a Geotechnical Report, you will need to appoint a Geotechnical engineer to do a soil report so you can determine the correct type of foundations. 2. Contractors often try to present "cheaper" shortcuts to building and that never ends well. Make sure that all decisions regarding the structure of your building are approved by the Engineer and the Architect and communicated through your project manager/ Principal Agent.
I’m currently thinking of buying stands and building houses for sale. But after watching this video I am scared and I’m wondering will I even make profit from this business 😭😭😭
Your Architect knocked you. I finished building a 367 sq at the Hills Eco Estate in Mooikloof in Pretoria east. Paid R50K to my architect, R10k for my engineer to draw foundation and slab designs. It helps to ask around when building otherwise you will pay for things you are supposed not to pay. Obvious, my cost where not bad because I was the builder. Before building, I registered with NHBRC. I went around estate looking for builders and paid them a daily rate rather than looking for a contractor who will charge by sq. Trust me building is cheaper if you know. My advise, manage your own project if you can. If you get a contractor, they will charge nothing less than R10k per sq.
My brother. You seem to be very knowledgeable in these things. I'm in the process of buying a property too. Can I please have your number or contact details. I'd really appreciate your help
Your architect actually severely undercharged you. SACAP provides a fee metric so that any member of the public can calculate how much an architect should be charging them. Architectural fees are not thumb-sucked, we work according to a national fee structure. Unfortunately you're unaware that your Architect and Engineer did you a favour. You're also perpetuating the "discount" mentality which is crippling many businesses, especially black-owned businesses and professionals in SA. If a person has no experience of building, they will definitely not understand how to manage a project; There are timelines, a construction sequence, penalties building methodologies and many more considerations which need to be taken into account. I would strongly advise against this for someone who is not a construction industry professional. Remember that all costs will fall on you as the project manager if something goes wrong. This is the reason we have so many cracked, incomplete and non-compliant buildings in SA. Do not underestimate the importance of building professionals in a project, it is much more expensive to pay for a mistake than to pay for a professional. You're speaking from a position of privilege as a builder because you understand and have experience in the building industry.
@@atumsiska9450 Oh, I forgot to mention that He is a friend I met at Varsity. Same as the engineer who is my wife cousin. Things have changed, we have friends in many professional areas. It also helps to get connected with relevant people. As for discount, that is why White companies are ahead. They help each other in many ways. In construction, sometimes we charge less just for exposure. When you get a chance to build something in an estate, people passing do come to check your work. That is how I stated my construction company.
Emakhaya you don't need this fancy stuff,we dont need to buy a plane,we just copy and paste from the internet and makhi will draw it for u for free,no stress shame emakhaya
My wife and I are busy with the process but atleast we bought from the chief and the cost are much better. We are excited even though we haven’t started to build
@@mojakipitso5955 I hear you. Granted you may require the entire team in order to see through your project, and that would depend on a wide range of issues which would be unique to your specific project. To answer the question at hand / video topic, the employment of a QS would have solved our Financial Bunny's problem which is 'Unknown costs associated with building your own house.'
@Ak Grant Wow, that was prompt and to the point. Kudos to you once more. Quite a professional response, and I’m impressed! 👋🏿👋🏿👌🏾👌🏾👍🏾👍🏾 Right, let’s confine ourselves to the topic at hand. Though I guess the idea is to generally educate, isn’t it?
"Not a young brick..." LOL you are hilarious. My dad worked for the NHBRC for 30 years. He passed away in June due to COVID but just before he passed he told me not to buy a stand and build. He said it's too expensive these days. He was really clued up about these things. He advised me to buy an existing home that can be upgraded. So now my wife and I dodged a bullet.
Bathong Nicolette!! Please also explore the financial difference in buying in rural SA vs the suburbs and if it's worth making such an investment in rural S.
At least you bought your land cheaper Nicolette. The one my hubby and I made an offer to purchase is R1.6 million in Wood............... estate. Sadly, we are still going to be subjected to the same process, including hiring the quantity surveyor, paying for the geo tech report for testing the soil because soil needs to be tested before the building can begin. It's a lot... I personally think it is cheaper in the long run, but very expensive at initial stages. I think the upside about building your home from scratch is that you are able to design your it to suit your needs, lifestyle and preference than an existing house (pre owned). At least the transfer costs are still lower because it's only a piece of land that needs to be transferred to your name than the whole, for example, R4.5 million of the cost of an existing house. The best way is to do research before one buys a piece of land, especially if it's in an estate. The pressure of having to complete building your house within two years is also something people should also take in consideration. I just wish banks can review their policies or terms and offer at least 90% of financing such. That will certainly ease the pressure on individuals. But people must also note that once the bank has approved your finance application, it pays in phases and some banks starts charging interest from the amount they've released, say in phase one. So you start paying bond before the house is even completed, including levies, rates and taxes, refuge collection, water that your builders are using to build your property etc. You still need to have a gardener for your lawn, even though it's just a piece of land because a lot of estates have a rule that your grass should be maintained at a certain level, otherwise they penalise you.
Yuuuh I am just about to settle for a land I bought at an eco estate. I’m a QS by profession and I know all these processes, but still I am weary of what I’m about to embark on.
@@pdpash I think it helps if you're aware of the lengthy process and the costs that you are going to incur. And being a QS by profession works towards your advantage because you have the industry experience.
So true, infact I also paid for a Soil Test/ Geo Tech Engineer. This to test how deep the foundations should be. The soil is sent to labs. I am happy i did as i discovered that the soil was sinking and so the contractor had to bring in stabilising sand as this would have created cracks once the house was completed. Building is so damn expensive especially if you are doing from your savings and short term loans but it is worth it as it is a house that was never occupied in the past, meaning new tubs, custom design etc.
Never laughed so hard. Yeah no we live and we learn, I think the lesson is to do research even with the said assumptions, and experiences. There's always something hidden. I don't know. Something like that lol.
My husband and I bought a stand long time ago in Limpopo, Namakgale for 10000 and we planning to build a foundation, we got the shock of life thus far but we saving to start building in December, so no alcohol during the festive season, it will be us and cements all the way, Lol
i love your videos, very informative and humorous😂 at the same time. lets just say this video came just in time for me! great video once again nicollete❤
Dankie for the lesson ausi Nicolette 😂🤣I always thought building was a hustle, now I know it's a job and it's very costly before even the building starts. By the way, how much did the architect charge if you got a 120K discount 😨
Taking into consideration the economic conditions of this nation, can we agree all those external costs are actually a barrier to entering the housing market?
@Thage Segopotse I don’t think they are “hidden or extra” costs. If working with reputable professionals, everything should be above board and upfront. The only hidden or extra should be covered in the “Contingency Amount”, which comes as a percentage of the project and is already shown in your overall project cost. And this too should be under your control, I mean approval.
@@mojakipitso5955 you have a point the unfortunate part is most people aren't well equipped with information about the property market,you can even find the very same Predicament even in the Automobile industry hence some first time buyers turn to find themselves in unfavorable Financial position..
i think it depends on where you choose to build Sis, obviously when you build in the estate its gonna be different to when you build outside, like in the township or a village. there are no such extra fees when building outside the estate
Great content as always Nicollete. Just a piece of advice from my experience with building, if you already know how your want your finishes to look start buying them now. Things like bath tubs, tiles, vanities and mirrors get these items when they are on sale. It makes a huge difference. What you don't want is to pay a premium price for something that was cheaper a few weeks ago because the builder needs it now.
Building or buying. Both have pros and cons, you just have to choose what’s best for you. The Pros of buying an existing property are but not limited to: 1. You won’t have to deal with all the logistics detailed in the video, but you deal with a portion of them like transfer costs, levy fees, municipal rates etc. 2. You move in to your house sooner than you would if you were to build. And many more. Cons: 1. The house wasn’t designed around your needs and lifestyle, so you might have to remodel. A remodeling process can be nerve-wrecking just like building from scratch because you still have to engage an architect, structural engineer and others depending on the complexity of your structure. In addition to that, you now have a set of constraints in place. e.g. i) The existing walls might not be strong enough to take an additional load as they were designed for the existing conditions you bought into. This means you might have to knock one or more walls down and rebuild them to accommodate your additional spatial needs, this is the part where you need both the structural engineer and architect 🤗. i) the building codes in the area you bought in don’t allow for an additional storey as it may be necessary for your needs. etc. 2. You might not find the best property for you at the desired location, so there’s a trade-off. 3. Risk of hidden structural defects. A few years down the line you might start to realize defects in the structure that may be as a result of poor quality management during construction as you were not there or did not have someone in place to represent your interests. The list is endless just like in the Pros. Consider all the negative and positive aspects before making a decision. All the best with whatever you end up going with, you deserve only the best!! 🖤
I'm from Lesotho, and embarked on my building project in 2020 during lockdown. Needless to say our regulations differ immensely.You mentioned a building schedule, and it grabbed my attention. It would have saved me tons if I had that before I started the project, delays more than doubled my building budget, and I had quite a few of those due to the lockdown, as I had outsource some material from South Africa.
I salute women and men that buys building materials bitjie bitjie magaeng, yoh am building from the ground at home and I won't lie as much as we don't need approvals or buying an expensive land, building on its own is expensive. The guy charged me 70k and material on its own is expensive. Kore I don't know bafwethu. I just want to hear him saying we are roofing now. Even had to change from scotch roof to straight roof.
Our problems started when we started to identify ourselves with western ways and honestly majority of us black can't meet those standards njee. Kodwa emakhaya it's possible
Congratulations. And good luck with process of seeing your dream house come to life. Yea. Banks also expect a 40% deposit if you just want financing vacant land and not an entire building package.
The pain of building comes from all the upfront costs of legal admin, professional team, building materials and the most expensive part the finishes (tiling, painting, sanitary ware)....the bond on the other hand everything is in place you're just paying for the finished product eg 10k/month VS chunks of money that need to come out in one go
The 120k discount from the architect !I died myself lol. I can't wait to start the process...we were torn between a golf estate and a freestanding beachfront stand in an exclusive suburb, and we went with the latter to avoid the Estate costs...Getting builders quotes now while we wait for the council to approve :-) It's going to be a long journey, we're anxious, but when we do the Maths of the estimated value of the house and how much we'll spend vs what we'll get for the amount we're spending on the market right now, we sleep much better. Also building is a lot more flexible, we're probably going to borrow very little because we plan to put in whatever cash we have with every stage for most of the project because we don't need to move in now. Whereas buying would force us to get a mortgage.
There's an endless amount of information out there so yes we can and should do our research but the live experience always slaps different. 😅 Thanks for sharing yours. To those comparing with rural areas, it's definitely much cheaper but getting a market value for a property in the rural areas is really difficult , people struggle alot with selling their houses. But if you are building for leisure and not investment then I guess it won't matter.
Thank you for the video. I only watched 5 minutes of the video, and I made my decision. I will buy and renovate an existing house.🤣🤣🤣 asoze kaloku. My head is spinning already ngathi ifunwa kum le mali
Thanks Nicolette that you had to do this video. Alot of big houses are built without the involvement of the Engineer which is fine until the owner decides to sell the house, the reality kicks in. One will be having a huge house thinking he'll sell it and make millions, shock of their life is that, the owner will struggle to sell it because it was never certified by the Structural Engineers.
So very true! My cousin and her husband were halfway through the buying process for a house in KZN and then it came up that the house had never been certified when it was built like 6 years ago. The owner had already emigrated and getting a hold of them as well as finding an engineer to assess etc ended up being too much admin and they actually dropped it. They bought another house and that first house is actually still on the market cause no one wants to spend extra to get the house certified/ explore the options on getting that process done.
Hi Nicollete this a side topic question I've been listening to yo past videos and they are really inspiring😁 esp. the rental property ones u made a few yrs back but I hv a few questions which I think will make a great video 🤗✨ 1. When we talking about rental property the 1st thing that comes to mind are these huge apartment buildings 🙀 n obviously this is discouraging bcos I'm sure they cost millions of Rands which is not affordable for any regular Joe even tho in 1 of yo prev vid u said u can buy a floor/part of a building (this is also linked to Q3 below) (basically can u plz clarify the types of properties one can buy) 2. Managing a yo property (hopefully u did eventually figure it out cos u once made a vid about which option was better btwn self managing the building or hiring a management company which u prev said it was expensive, but u never came to a conclusion about which option is better esp let's say u also hv a 9-5 job) - let's say u managing it yoself, do u go to that house/apartment every week or day or month? to do wat exactly? Esp since there is gonna be a person there (imagine the awkwardness lol😂) or do u wait for the person to complain about something 3. Property buying - where do u find properties to buy, is there a website like property 24 (never logged in by the way) cos I'm sure it's not practical for a person to start driving around looking for 'for sale' stands or are there other websites where u can look at different properties (house, building or wat ever) 4. Let's say u want to buy an old building/rental house or wat ever (linked to Q1 also types of properties to rent) do u get a loan that will encompass buying the house/property n also renovations (if u want to do that) 5. Contract - obviously u must sign yo tenant, do u hire a lawyer to draft the contract or is there a basic format that is downloadable 6. Additional cost involved in buying a new building or old building I know this a long read but it will kinda every into perspective when it comes to buying for rental purposes (ps some of the Qs may seem silly🙈 but so someone who is still a student like me😁, it is useful) Pray that u c this n make a video on it 🙏🙏🙏🙏🙏🙏🙏🙏🙏✨✨✨, it will be highly appreciated
You first have to be pre-approved by banks and see how much you can afford, most estate agencies don't take you to view a unit in an apartment or a house before they know you can afford it. You can search property 24, iol, private property, there's a lot of channels depending on where estate agencies decide to advertise, call any agencies you advertising some properties and they will tell you whenever there's a new property on the market. After your pay for registration fees and all cost involved which the agents can explain the process for you, you can also choose any real estate agency to manage your own property and you pay a fee monthly, the fee is a percentage of your rent. Which is not a lot usually 7-9% it helps when they manage it, they look and advertise to get tenates and screen them and drafts contracts for tenates and go through the procee of eviction if they don't pay and also collect rent for you and pay your municipality fees. You can do it yourself if you don't mind getting calls in the middle of the night about how their neighbor is making noise or have guts to evict someone. The costs and how to navigate which is a good buy is best you get a mentor cos it's easy for it to turn into a bad investment. All in all is not complicated.
Isn't there a difference between building in an estate and a free standing land? This is why I avoiding buying land in an estate. Haven't started building yet so maybe I'm in for a surprise🤭 I think building on free standing is cheaper because there are less restrictions and you can take your time
Well obviously there's a difference between building in an estate and building in a chief or municipal land. A huge difference for that matter. Yes, it is way much cheaper to build a house at chief land. I have recently been there and could build a bog house cheaper. The only challenge is the property does not have that much of money value compared to the one ya ko estate, depending on where you build it of course.
There definitely is a difference so you’ll probably get away with not paying HOA fees but you now need to Worry about Maintanance, security costs in the future
I also bought a free standing land. Everything is very affordable. I've started building and the costs are cheaper than buying a house. I'll definitely spend less than 300k for everything including labour
So if you're buying municipality land, there's no HOA & NHBRC, and you don't need a registered builder right? It's just plan registration,rates & maintenance of the land? Is there anything else I've missed out?
You need your plan to be approved by the municipality and they'll take you through on what will be happening during the construction stage. Part of those is the municipality inspection after foundation, after superstructure, after roofing, after plumbing etc. I would suggest that you get an NHBRC certified builder, it will make it easier for your municipal inspections. Nicolette's route is actually a good way of doing things. Remember at some point you'll need to sell the house and make millions. Noone will be buying an unapproved house.
Most to be home owners get the shock if their lives when they find out the hustle involved in building a house. My advice is dont build a house thats exactly the amount of your house because there are a lot of costs that come during construction
My dad is almost done building, it’s at the finishing stages, the patio and outdoor floor .. and still he is still paying for all this every though he had saved to build. My mom however bought a house , STILL transfer fees and municipal fees, she wasn’t ready as well. So either way Kuyanyiwa either way. I prefer buying , am thanks.
I guess it all depends on where you are building your house, I still think building is cheaper than buying, obviously depending on where you are building. This video is very informative, I've learnt quite a lot. Thank you sis❤️❤️❤️
The reality is, all of the things she mentioned are what the legal process is like. Whether you're building on an estate, or free standing house at the Suburbs or the Townships. What happens is that in the Townships or Rural areas, it is not enforced as much as it is in these other places. However, should your place require municipal assistance, the first thing they'll ask for is the paperwork.
Ha ha ha…. I love the “Yey” part!!!! You need to do serious research on such big purchases. I’m glad you are sharing this experience with many more people. I built my parents house and have architect friends and they don’t come cheap!!! Happppppy building
I am building in savannah country estate Pretoria east.from my experience building in an estate is not the same as building in rural areas or a surbub. Estates have rules and standards and as owner u must comply with what they call code of contact. Building in an estate is very expensive, I bought my land 4 R560, 000 for cash, is a stand of 910 square meter.yes I pay 4 vacant land of R5000, levy R1200 and rates and tax of R1400.already paid architect, engineer, land saver each with his own fee.the plan must get approval from the estate first b4 manucipality approves it and the is a fee u pay at manucipality according to square meters of your house.my engineer said I must do raft foundation bvos of the soil on the stand which cost R250, 000 at maximum based on the size of my house.yes u put 10% of of wat qualify for if u use building bond through bank. So I can say building in estate is very very expensive b4 u even put a single brick on the land. It is not cheap but it worth it.in my estate u are given 2 years full to complete your structure
@@preciousprecious7581 what I can say to u is so called estate lifestyle is not cheap it cost a lot money. Do your proper calculations b4 u start.another advise is buy newly developed Estates bcos u gonna get things at the most reasonable prices. Well developed Estates are very expensive.google new development in your area or areas that favors u grab such opportunities u will save a lot of money.most new development don't charge things like vacant land u only pay levy, rates & taxes.it is a possible dream it need right moves and calculations.not perfect once but correct info will take u far.another different is Estates differ country estate are not the same as golf estate or nature reserve estate rules are different from one estate to another.
@@preciousprecious7581 one last thing that is so important, when u build in an estate u must have cash on u, way b4 bank step in and finance you.if u qualify 4M they want u to put down 400k as a deposit if is 3M u put 300k is 10%of wat u qualify 4 that is y need real cash.the 400k or 300k is the 1 u gonna start the project with bcos they will tell u, u can only claim from your building bond when u arrive at window level or first floor if u building double story.the bank monitor the project like watch they don't just release money 😂
@Mapule Mdletshe “Yho!”, I dare repeat! Are you saying this 50% should be applicable in both cases? I’ll confine myself to building. Yeah, maybe to the lower-tier market, but once you start looking at mid to high-end, that would be a killer. I have a question: By quotation you mean from the Contractor or you engaging the Professional? Nevertheless, if your project is handled professionally, then the contingency generally amounts to 10%. Not many people would be this blessed, my sister. Personally, I sure like how you’re going about it though.
Building will always be cheaper because all those costs (Architect, Engineer, Contractor, etc.) are already included in the price for an existing house that you could buy on the spot. So the beauty of building is that the professionals (Architect & Engineer) are there to actually help save you optimize your budget, thus saving you money.
You left our a couple more of costs - a land surveyor for marking out the site, deposit for water at the municipality plus electricity... Also, thr 60% loan thin applies for buying a stand only...when it is a building loan including building costs and land...you can get 90-100% loan.
Building in Pretoria East going great so far for me. Went with a contractor he is taking care of everything. Already had a house design that I liked. Went with a building package only paid 20k bond registration fees with attorneys.
I love you 😂😂😂❤️❤️ I am looking to building a house, I'm subscribing for info and for the way you tell stories 😂😂😂😂❤️ I'm binging your channel after this video
Same here, building in Namibia and I am already more than over bubget at the moment but we move😂. It is a proud a moment when you see the the structure taking form🤩 but woeg, I was not ready for this. Cement is my biggest headach at the moment, just when I think we’ve got enough I get a call that we’ve run out
Doing your research before purchasing any asset is a necessity...it's a mistake not to do your "due diligence"...Building is cheaper if you do due delligence first. 1019 sqm in Sandton goes for R1m and above. In Meyerton outside of Joburg is R150k and its the best ran Municipality in Gauteng. If you want comfort you simply have to pay for it..it's as simple as that lol!!
eish I thought you were gonna talk about building a house as an everyday normal person. Meaning no engineers or any fancy stuff.... just a village house or something
@@FinancialBunny Ausi you should have watched a at least one season of Grand Design you've just explained what I have been watching throughout the year on Grand Designs Building is a nightmare especially if you are building a sort after estate. Love you video though
Hi. Can you also include figures please. Great video but would like to know what more or less should be expected. Also if you don't mind, where did you purchase the stand?
Some people literally have cash saved for building especially in the rural areas and is because the logistics are also not as complex. You have full control of the process unlike in her case
Can I share this very important advise, if you can and infact, Must, please do the preliminary first phase of your house with your own resources, then you can engage the bank for completion, this way, you will save yourself from the significant interest charges that kick in as early as the first disbursement. Make sure you don't claim more than 3 times, so building the first phase from your pocket helps you to achieve this, also, if you can, buy most of the material, yourself, you will build a multi-million house, with ease if you can possibly add this to the already beautiful guidance provided, here...
Good advice. Yet you still have a lot of hurdles to go through. Not many people would know how to navigate those. The materials issue is especially a sore thumb. All building materials are graded, no correction, there are those “fongkongs” by the way, which are way cheaper and people not in the know seem to fall for. Know the adage: “Cheap is expensive” - in the long run. As much as one would want to make a saving, it’s far advisable to get yourself professionals, especially in something you don’t know much about.
@@mojakipitso5955 pretty well heard, but again, it's also very advisable to first seek information, knowledge about what you want to venture into, when I built my first house, in commercial land, I was smart enough to use my brother's construction company, where the disbursements made were directly invested back into material buying, it was exactly as buying materials, myself, it saved me chunks of hundreds of thousands, if you can, try to stay away from getting the key to your house, be involved, smartly, some of these construction companies will use cheap materials and hand you keys...
@@duffydon1741 My point exactly! You had resources and connections. You were well-informed and also committed to your project. I wouldn’t be exaggerating if I said almost 80%+ of homeseekers don’t have an inkling of the magnitude of the task. You have my vote for taking your destiny in your own hands. Would you do exactly as Nicollete, scripting out your project journey to educate the others? Or at least those around you, as property ownership and everything about it, is a huge task, even for our government to educate on.
@@mojakipitso5955 @Pitso, we need to be there for our black community, one thing that I have realised is that, we are far and very much behind in comprehending financial literacy, we black community Infact have cunning strategies of how we can squander money visa vee creating generational wealth, property is one of those investment portfolios that you can't go wrong with. We have a long way to go untill we can liberate the black child from poverty, poverty tendencies and poverty mentalism.. Let's share as much as we can..
It depends where you buy land. Buying far from the northern suburbs and out of an estate works out way cheaper. So location is key!! You will always need to submit building plans to the municipality so that you can get the correct legal rights of the property.
😂 headache x3 for you. I'm glad you still share these stories. I've been viewing with no intention to buy anytime soon, but I'm just learning these things I hear from the likes of you and others
Ĺove love love you Nicole Nicolette ❤ thank you so much for sharing your knowledge and planting the seed of financial freedom in each and every one of us listening/watching
Man I would need an architect to come answer. Some of them look you in the eyes or the car you drive and come up with fees. Just need to check with mine what the calculation was based on
