Building a home can be a very demanding exercise; not least because you don’t want to burden yourself with an excessively high mortgage you can’t afford. The first step is to be honest about your budget. Many people feel they need to keep their cards close to their chest to ensure they get the best deal from their builder, but 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 certain areas that might assist you in avoiding a budget blow out.
Budget and Finance: Before you go any further, it’s important to establish your budget. Speaking to a Mortgage Broker regarding the right type of loan to suit your needs and obtaining a pre-approval at this stage.
Research: Building a home on a tight 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
Design: One big drawback to working with an architect is cost. Working with a homebuilder, exclusively, 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 common area for budget blow out, so plan for this early on in the process.
Floor Plans: 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 suitable on the block. It is also important to make sure the land you purchase is compatible with your home design, with the size, the shape, orientation, slope and soil type all points you need to consider.
Finalize Building Contract: It is important you go through both your written contract and the final contract plans, to ensure you understand everything and they are exactly as you want. Also, you’ll need to check this, that all works are within your allocated budget. If there are errors or you have gone over budget, now is the time to fix things, as many builders will charge to changes made after contracts are signed.