Your web browser is not actively supported by this site. For the best experience, update your browser, or switch to a modern browser like Google Chrome or Mozilla Firefox.

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.

The investment property guide

Questions to ask yourself before placing an offer With the property market in a growth phase, rental vacancies at all-time lows and staycations replacing overseas travel, many people are considering this as an opportune time to enter the investment property market. Whilst it’s a decision that needs to be based...

Questions to ask yourself before placing an offer With the property market in a growth phase, rental vacancies at all-time...

Read More
How to drive your renovation dollar further

Questions to ask yourself before diving into a renovation For many Australians, the pandemic has increased our appetite for renovating. With more time spent at home, extra downtime and little opportunity to spend our dollars on an overseas holiday, we are looking to make our own space a little more...

Questions to ask yourself before diving into a renovation For many Australians, the pandemic has increased our appetite for renovating....

Read More
Seven Books to Improve Your Money Mindset!

It’s amazing how addictive reading about good money habits can be.  Here are seven books we think are a must for those of you keen to improve your financial habits. The Barefoot Investor: The only money guide you’ll ever need With almost 2 million copies sold, Scott Pape’s best seller...

It’s amazing how addictive reading about good money habits can be.  Here are seven books we think are a...

Read More
What Pocket Money can Teach Your Children?

Pocket money is a great way to help teach your child financial management skills. It gives them a firm idea about the value of things, teaches them to save and gives them a sense of responsibility for achieving their own goals. It’s important for parents to remember that children take...

Pocket money is a great way to help teach your child financial management skills. It gives them a firm...

Read More

Get started with an online loan application

Years of age

Years of age

Australian our NZ resident

Australian our NZ resident

Confirmed employment

Confirmed employment

If you'd like a little extra help, call our team on    1300 360 744.