How to Avoid Budget Blowouts During a Home Build
Building a home should be an exciting experience. It can be a great way to gain independence in the property market, create your own space, and let your imagination go wild. However, too often the process is stressful and overwhelming, due to the numerous financial aspects to consider. Most people building a new home worry about their home build project going over budget.
The Perway Constructions team has built many new homes: here are our tips and tricks to keep your finances in check so you can complete your dream home without breaking the bank.
1. Set Realistic Budget Goals
Being realistic about your budget goals in the first place will help you avoid financial stress and go a long way towards ensuring a successful home build. It's important to have a clear understanding of how much money you have coming in and how much you have going out.
Your savings and bank loans will most likely be the biggest element of financing the build. You should have a rough idea of how much you can borrow for the project: if not, speak to a bank or a mortgage broker.
It’s important to ensure you also have cash on hand for expenses. Sit down and evaluate your monthly income, including your salary, any additional sources of income, and any potential fluctuations. Then, list out all of your expenses, including bills, groceries, transportation, and any other regular expenses.
By analysing this information, you can determine how much money you can realistically allocate towards your home build project on a month-to-month basis.
2. Plan and Prepare for Unexpected Costs
Make sure to plan and prepare for the unexpected by setting aside some extra funds as a buffer.
When it comes to building a home, there are bound to be unforeseen expenses that can quickly blow your budget. These may include unexpected soil conditions, delays in material delivery, or unforeseen structural issues.
By having an additional financial cushion in place, you can handle these unexpected costs without derailing your entire project. Determine a realistic amount to set aside for these unforeseen expenses. Be conservative and err on the side of caution when estimating these costs.
3. Do Thorough Research
Once you have decided on a home building project, it is important to conduct comprehensive research and plan thoroughly. Researching materials, fittings, costs, and layouts will help you to get an accurate picture of what your project will cost. Consulting with an experienced home builder like Perway Construction can help you to understand building regulations, local council laws, and other legislative requirements that may affect your project. We can also help with materials costings. You may also wish to engage an independent designer or architect to help you to visualise your project.
By conducting thorough research, you can also discover alternative materials that are affordable, durable and sustainable. Consider options like recycled or reclaimed materials, which can be repurposed and give your home a unique touch. Additionally, consider exploring local suppliers who offer competitive prices.
Don't hesitate to consult with professionals in the industry who can provide valuable insights and recommendations. With a little effort and creativity, you can find cost-effective materials that will help you save money without compromising on the quality of your home build.
4. Choose the Right Builder
It is important to shop around and look at online reviews to establish a builder’s reputation. Ask for recommendations from friends or family, or visit home building sites to get an idea of a builder’s work. You should also ensure that your chosen builder is registered with the Australian Building Codes Board (ABCB) in order to guarantee best practice during your home build.
During a consultation, make sure to ask about the builder’s qualifications, licences, and insurance coverage.
It's also crucial to get detailed written estimates from each builder, including the scope of work and a breakdown of costs.
Trust an experienced builder like Perway Construction to help you navigate the building process and ensure your project is completed to agreed specifications. We will ensure that your home build stays within budget and avoid any financial surprises along the way. Get in touch today.