How To Set A Realistic Building Budget
Have you decided to build the custom home of your dreams? Congratulations! You’ve got an exciting journey ahead. You’re probably wondering what comes next. How should you go about turning your dream into a reality and what can you do to make the process stress-free and simple?
The first (and most important) step in the process is to set a realistic building budget. Before you can get into the nitty gritty of the design and construction, you’ll need to sit down and map out a budget that allows you to build the home you want, with the resources you have.
So how do you set a realistic budget? Read on to find out.
Step 1: Make a ‘needs’ and ‘wants’ list
Before you start selecting the flooring, tapware and paint colours for your home, it’s important you determine what exactly your goals are. To start, ask yourself:
What features do you need in your new home?
What features do you want in your new home?
Why are you building a new home?
What is your current home lacking?
Once you’ve considered your goals, it’s time to make a ‘needs’ and ‘wants’ list. Your needs are all those necessary items that you cannot do without – for instance, a spacious kitchen with plenty of bench space, an ensuite for the master bedroom, a functional study for working from home and so on.
Your ‘wants’ will be special items and features that you could live without, but you’d like to include if you have the means – for instance an outdoor fireplace, dual basins in the ensuite or a luxury appliance. Your budget should be shaped around your needs first, with several desirable features being included should the budget allow.
Step 2: Engage a builder
You may think you might need to work with an architect before you engage a builder, but we suggest choosing an architect and builder early on and working collaboratively with both during the design stage.
Builders have a more hands-on and experienced understanding of the costs of construction and will ensure your design is suitable and stays within budget. There’s nothing worse than having plans drawn up that you love, only to find that the cost to build will exceed your budget. Avoid disappointment and heartache and engage a builder to help you build a home that fulfills your design brief without blowing your budget.
Step 3: Make allowances for unexpected costs
Being realistic about your budget means having the foresight to see unexpected costs on the horizon. While a high-quality builder will help you avoid this scenario, sometimes it can’t be avoided. For instance, if large rock is found on your block of land, this may require excavation or the additional services of an engineer. Be sure to put aside a “just-in-case budget” so you aren’t stressed when faced with unexpected costs.
Step 4: Make selections early and stick with them
Once you’ve set your budget, it’s all about sticking to it and ensuring that there aren't major changes down the track. This can be avoided by thinking hard about your design choices before signing your contract and making detailed choices about fitting and fixtures early in the build. Variations made during construction can be costly and can easily lead to your budget blowing out.
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Do you want to work with a builder who can help you set a realistic budget? Get in touch with Olsson Building today.