Building a new home can be a very exhausting exercise; no one wants to burden themselves with an excessively high mortgage you can’t afford. The first step is to be straightforward with yourself about your budget. Several people feel they need to keep their cards close to their chest to secure they get the best deal from their builder however in reality it works best for both parties if you’re open and honest about the budget from the start.
Below are a few ideas in specific areas that might help you in avoiding a budget blow out.
Budget and Finance:
Before you go any further, it’s important to authorize your budget. Speaking to a mortgage broker regarding this right type of loan to suit your needs and obtaining a pre-approval at this stage.
Building your new home on a tightened budget is achievable.
The cost will vary depending on things like:
- The type and quality of material
- The Tradespeople you use
- The quality of finishes and fittings
- The size of the job
- The site location
One big con to working with an architect is price. Working with a homebuilder solely during your planning stages, will likely save you money on drafting, plans and any necessary revisions.
Get an electrical plan done at quoting stage, as it is a typical area for budget blow outs therefore plan early for this in the process.
Considering the size, shape, easements and setbacks of a block a builder can offer their knowledge as to what type of floor plan would be best suited on the block. It is also important to make sure the land you purchase is compatible with your home design, such as; size, shape, orientation, slope and soil type are all points you should consider.
Finalize Building Contract:
It is very important you go through both your written contact and your final contract plans. To assure you understand everything and they are exactly as you want. Furthermore, you’ll need to check that all works are within your allocated budget. If there are any hiccups or you have gone over your allocated budget, now it the time to fix things! As many builders will charge you to make changes after contracts have been signed.