You’ve decided that you’d love to build a new home and enjoy all the benefits that come with being the first owner of a freshly built house. Brand new fixtures and fittings, new product warranties and guarantees, low maintenance, you get the home you want and the best part of all – no one else has ever lived there!
The big question is how much will it cost? Or more importantly, how much do you have to spend?
Establishing your true budget before you embark on this exciting adventure is the most important thing you will do to avoid disappointment. As they say, dreams are free, but in reality you need to carefully analyse what you have to spend so that there are no unwelcome surprises along the way.
To begin with, establish what your total project budget is. What is the total amount you have to spend to get you crossing the threshold of a fully finished house on established grounds? Now that you have this number written down you can calculate what you have to spend on all the elements that make up your dream property.
There are several costs that can impact the bottom line of your budget and a significant number of these happen prior to commencing the construction of your home. It doesn’t matter what the home you’re thinking of building looks like, how big it is or who is going to build it for you there are a number of costs to consider that will then help you to establish what is left in the kitty to construct your home and do the landscaping.
This is where a relationship with an established builder becomes very important so that you can seek the best advice. For example when looking to purchase land you need to consider what extra costs there are going to be to establish a suitable building platform on top of what might seem like a reasonable purchase price for the section. Some of these potentially costly factors are site costs such as excavation and retaining, covenants, local council requirements, services and location.
Once you have a clear idea of what’s needed prior to construction, put a figure on establishing and landscaping your grounds after the house is finished. Now you have a true figure left for your construction budget and your builder can work with you to get you the home you want within that budget. Without a true construction budget you may find that you are presented with a house plan that you just can’t afford, or you might even find that you’ve sold yourself short and miss out on some of your wish list because there’s more money available than you first imagined.
Try not to get hung up on ‘square metre rates’ as these too are largely irrelevant in the greater scheme of things. House size, shape, specifications, kitchens, bathrooms and all manner of other factors will determine the cost of your home. What you really want to know is that at the end of this exciting adventure you can move your family into the home you’ve always wanted, on time and within your true budget with no surprises.