Updated May 2021
We Kiwis are known for our laidback, “she’ll be right” attitude. While this approach can work well in some circumstances, coming up with a budget to build a house isn’t one of them.
Money is one of those topics that people can feel uncomfortable discussing, but unless you recently won Lotto the reality is that you will have a fixed budget for your build. So if you don’t do some careful planning around your budget right at the start, you may find that at the end of your build you don’t have any funds left for curtains, landscaping or that new lounge suite that you had your heart set on.
Reputable building companies definitely do not want their clients to end up in this situation which is why we like to establish early on what your budget is for your building project. After all, if we don’t know what your budget is, how can we make sure that your building costs come in within budget?
Once we know what your total budget is for your finished home, we can deduct costs that need to be allowed for such things as driveways and street crossings, fencing and landscaping and curtains or blinds. If you are building in a rural location, you may also need to allow for the cost of installing services such as power, a water tank or septic tank.
Working backwards by deducting these costs enables us to determine the actual build budget and design a house to suit that budget.
The next step is to decide on which are the “non-negotiable” features that you really want to incorporate in your home, and which items would be “nice to have” but not essential. For example, a separate office so that you can work from home may be non-negotiable for you, whereas a butler’s pantry may be less important.
To help you with your decision-making the Fraemohs team can then prepare an estimate of building costs including your non-negotiable items and list your “nice to have” features as extra costs. This gives you the ability to work through your wishlist with a calculator and decide which of the “nice to have” items you can afford. We find that this isn’t always a straightforward process as couples often have different views on which features they can or can’t live without!
Another aspect to consider when determining your budget to build a house is how long you are intending to live in the home. If you are intending to stay in your new home for many years to come, it makes sense to think about ways you can future-proof your home to allow for changes in your family or health.
By thinking carefully about what you really want and need in your home, you can make sure you get the best home possible within your budget.
Shirley and the team take a sensible, realistic approach to budgeting for new homes. If you want to make a start on building your new home and need some assistance in creating a budget to achieve this, drop us a line today via our contact page.
An affordable range of new homes
Fraemohs Homes is pleased to introduce Fraemohs First; our new range of affordable home options, specifically for first home buyers.
Our first home options in Christchurch and the wider Canterbury region fit the price caps required for first home buyers, wishing to make use of the Kiwisaver Homestart grant and First Home loan facilities. We have house and land packages in Christchurch available in a number of popular subdivisions in locations such as Lincoln, Rolleston and North Canterbury.
Fraemohs Homes is one of Christchurch’s longest running building companies, having been established in 1968 by Danish immigrant, Monni Fraemohs. While Monni has since moved on, we proudly carry on the exacting standards he set, along with his commitment to sustainability and efficiency. Building your first home affordably doesn’t mean you need to compromise on quality. The Fraemohs First range is by far our most affordable range of homes, but the quality and design is there as our customers can rightly expect of a Fraemohs home. We hope you enjoy living in our Fraemohs First range so much that when you come build another home later in life, you will again choose to build with us.
Our experienced team will help you navigate the entire process from choosing your section and home design, through to arranging finance and selecting colours and fittings. Our homes are designed to make the most of your section so that you can maximise sun and indoor-outdoor living opportunities.
Fraemohs believes in building homes, not just houses. A home is much more than four walls and a roof. It is where your child learns to crawl, then walk, then throw a rugby ball. Home is where family and friends get together to celebrate milestones. Home is where the memories of your life are made. Building strong relationships with our clients is important to us, and over our half century of building homes in Christchurch and beyond, we’ve had hundreds of clients build multiple homes with us. So while this may be your “Fraemohs first”, it may not be your last.
Home And Land Packages
Traditional house and land packages in New Zealand offered by many building companies involve the purchaser buying land from the building company. However this is not necessarily the most cost-effective way for a purchaser to secure a house package in New Zealand, due to the additional legal fees and finance costs incurred.
For purchasers with a deposit of 10% or more, Fraemohs Homes offers new home and land packages that are both more flexible and less costly. All you need to do is let Fraemohs know your budget, your requirements and the preferred location of your new house and our team will do the hard work for you. Fraemohs will then present you with a costed proposal that includes a section and house design.
If you like our proposal (and we’re confident that you will), we can put the section on hold for you for 20 working days while we finalise the land purchase and build contracts and get the financing sorted. Many people worry that they won’t be able to manage to pay for a home and land package while still paying their existing mortgage or rent. At Fraemohs, we have a superb finance team who specialise in new build financing and will work with you to arrange a payment structure that you can afford.
Our Fraemohs Homes guaranteed build time also means that you won’t be left paying the mortgage on a nearly finished house that you can’t move into. What you will end up with is a completed architecturally-designed home on a section of your choice and possible savings of $15,000 or $20,000 over a conventional New Zealand house package.