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 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 out contact page.