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Avoiding Building Budget Blowout

If you’re knocking up a cubbyhouse for the kids, it’s not the worst thing in the world if you go over budget. An extra set of nails or timber won’t require you to tap into any additional savings.

However, if you’re building a new home, those additional costs can amount to a series blowout of your budget.

So how can you avoid this dastardly fate?

Pick the builder right for the job

If you had a suspected broken leg, chances are you wouldn’t approach a dermatologist to help you set it. Whilst perhaps not with such grave ramifications, the same can be said about builders.

Make sure your builder is reputable, licensed, and insured.

Match your plans with a builder who has a proven track record. If your dream home includes a second storey, you’re going to want to engage a builder with experience in two-storey houses. Always ensure your builder has the appropriate licenses.

Cheapest does not always mean cheapest. If your builder runs into challenges along the way, the costs could sky-rocket. Also apply this principle when you get a referral about your “dad’s friend’s neighbour”.

Be Realistic and Flexible

We often use the term “dream home”, but in some cases you may need to be a bit flexible and make some concessions with what your dream will look like, complete.

Discuss with your builder what is feasible during the planning stage. Don’t be afraid to forgo and upgrade a “nice to have” in order to deliver your build on time and within budget.

Know What You Want Early

There are going to be some decisions you may defer as building commences, choices around fixtures, etc. The sooner you can provide a clear understanding for your builder, the better they can plan and manage those elements. This will also affect your builder’s ability to accurately quote from the get go.

Where possible, don’t change your mind. “Actually, can we move the door to the other wall” might sound like a simple enough request, but time truly is money and chopping and changing can set back the schedule.

It is important to bear in mind, if you are making structural changes to the house, some lenders require consent before you carry out these major works.

Building a house can represent an enormous investment, so even going over by 10% can equate to a large additional outlay. Be sure to plan early, be flexible with your dream, and engage the right builders for the job. Also, enjoy your new home!

Disclaimer: The ideas, discussions, options and details expressed in SCCU Blogs are for general informational purposes only and are not intended to provide specific personal advice or recommendations for any individual or on any specific security or investment product. We intended only to provide education about the financial and banking industry to make the complex simple, and help everyday customers realise their dreams.

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