How to Fix a Budget for Building a New Home? These Tips Will Help You Decide
What is the biggest obstacle in building a dream home? For most people, it is the budget. It is difficult to stick to the budget when you are looking to build your dream home. You do not want to compromise with anything and yet, the budget is a constraint. So, what to do? You need not overshoot your budget to build your dream house. Here we are sharing some tips that will help you save money during the building process. Quality builders Adelaide may help you in planning your dream home within your budget.
1. Setting a realistic budget is the key:
Many people avoid counting additional costs such as stamp duty, conveyancing, council or utility rates, mortgage insurance etc. while setting up their budget. Later, these costs come as a shock for many. So, in excitement to build a home, never forget to set your budget right considering all the costs.
2. Choose a simple design:
Want to save time and money both? Go for a simple design than a complex one. Rectangular or square designs need a minimum amount of construction works. Several best new home builders Adelaide offer simple designs that will save huge architectural fees.
Most people do not have sufficient budget for everything they like. In that case, you have to decide which elements of the home are most important to you. For example, if you have a growing family and you need more space, you have to allocate more budget on the size of your house rather than the high-end finishes like expensive carpet or ultra-modern appliances in the kitchen. There is always scope for upgrading the finishes in future but once the house is built, it will be difficult for you to add extra square feet to the construction.
4. Wisely choose the block:
If you are building a home from scratch for the first time, it is most likely that you will overlook the cost of site preparation before commencing the construction work. Choosing a land that is flat, easily accessible, plain and well connected to utilities at the street level will help you save a lot of costs. Sloping blocks and rocky soil might unexpectedly shoot up your budget to the sky. Never shy away from taking professional advice before finalizing the block.
5. You don’t have to choose everything that is expensive:
Of course, the more you spend the better you get. But everyone has a fixed budget. Overshooting budget means borrowing more money and inviting unwanted stress to life. Who likes to live in a dream home with a huge amount of stress? Before choosing fittings and materials, keep the budget in mind and try to stick to it. It is okay if you do not choose high-end floor coverings or kitchen appliances. “It will cost us just $200 more”, this mindset will shoot up your budget astronomically at the end and you will repent it. So, from the very beginning, be wise about choosing materials and fittings that fit well in your budget.
6. House and land packages are great money-savers:
One smart and cost-effective way to build a new home is to go for house and land packages. They are affordable, the stamp duty is lower and you get a clear idea about your budget before the building process starts. They come with a large number of inclusions and thus prove to be great cost savers.
7. Make things clear with the builder:
Customers have to sign a legally binding contract with the builder before the construction work begins. Ensure that there is utmost clarity about the rights and responsibilities of the customer and the builder to avoid future conflict. It is always advisable to insist for a transparent fixed-priced contract to make sure that once the construction starts, there is no conflict between the customer and the builder. It is best to choose materials and finishes before construction so that the builder can give you a perfect quotation and there are fewer chances of going out of budget.
Understand where will your most money go:
Most home buyers hardly have an idea about how much money will go into what during construction. That is why we have tried to break down the cost of construction so that you have a clear idea where you can trim your budget and where you can spend more.
Framing- $28,000: Framing is the most expensive part of home construction. Premium quality wood that is long-lasting will cost you a bomb but it is essential. Sheathing, trusses and framing will cost you around $28,000.
Foundation- $17,000: Building a house requires extensive excavation activities. It is important for a strong foundation and ensures that rainwater always flows away from the house. Excavation activity and laying foundation will cost you around $17,000.
Landscaping- $11,500: Landscaping like creating new grass lawn, a driveway will involve a great cost. The existing lawn or path will be ruined during the excavation activity and you will need a place to park or sit back and relax in the garden. You will have to spend around $11,500 for landscaping.
Doors and Windows- $11,000: Good quality windows and doors are essential for homes. Exterior doors will cost you a lot more than interior doors. If you want to install energy-efficient windows to lower down your energy bills, you will have to spend a good amount on window materials as well. You should spare around $11,000 from your budget for the doors and windows.
Plumbing- $11,000: Installing pipes and plumbing throughout the house is an extensive work. With the cost of raw materials touching the sky, the plumbing work might cost you about $11,000.
Cabinets and Countertops- $10,500: High-quality material like maple cabinet or marble countertops require skilled labour to fix it to perfection. This will cost you around $10,500.
These are the areas that will eat up most of your budget. In Australia, the average home building cost is around $184,000. It may vary as per geographical area, personal preferences like the material you choose and other factors. Considering these factors, you should fix a budget for building a home.