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3 Ways to Stick to Your Budget When Building a New Home

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Deciding to build your new dream home means making a series of decisions regarding the cost. Almost all future homeowners have a strict budget. To avoid the anguish of a budget blowout there are a number of strategies anyone building their new home should undertake. The first step is to understand exactly what your budget is. This will help you make decisions in line with what you can and cannot afford, and be able to make the right financial decisions based upon the budget.  

Make a 'Must-Have' & 'Would-Like-to-Have' List

Always understand needs versus wants, as this will help you list what you need right now, and what can wait. Not everything for a new home needs to be purchased at the building stage. Instead, pay most attention to the structural integrity, foundations, wiring, plumbing and drainage as these are expensive and complex to retrofit later.

Consider the design of your home when on a tight budget. A smaller home will save you significantly, not only in building costs but also in heating, cleaning and maintenance costs after the home has been completed. That doesn't mean you need to settle for a shoebox, but a smart home design that makes best use of available space will always be cheaper to build and maintain.

Remember, flashy decorative features that have no purpose including complex pitched roof designs, entrance facades, and other features all add significantly to the cost of the home design and may provide limited functional benefit.  

Account for Every Cost

Make sure to understand exactly what your building contract includes as this will differ depending on the building company. Get them to spell out every inclusion and expense and not all building companies will include these as standard. For example solar hot water may be included with one builder, but another it will be a necessary purchase to budget for.

Remember, there can be many other costs associated with building a new home including obtaining a soil test before construction can begin, site works if the land requires levelling or drainage, and other stamp duty taxes and application fees. Solicitors can help to look over your construction contract and negotiate terms most suitable to your needs.

Shop Around and Keep Things Basic

While you shouldn't skimp on roofing, electrical, plumbing and insulation expenses, other fittings and fixtures in certain areas of the house including kitchens and bathrooms can be added later. Speak to your new home builder about the most affordable way to proceed when it comes to the internal fit out of the home and choose materials that will be durable and last a long time.

Many of the materials may be cheaper to source yourself and there are ways to repurpose existing window frames, reclaimed timber and other materials that can be worth considering for those on a tight budget.

Staying to budget can be a delicate balancing act when building a new home. Since there are always bound to be expenses that you didn't expect or account for, always allocate $10,000-20,000 for unforseen expenses or other additions or features that you just can't resist. When it comes to building your own new home, the more you budget and understand what things cost, the easier it will be stay in control of the process and avoid a budgetary nightmare along the way.