BUILDING YOUR BUDGET:

The simple fact is that building costs do not ever come down. Sometimes they stay constant for a time, but they never actually come down. It is also true that building extra rooms as part of a new build will always be much cheaper than adding a room later. So you should build a home to suit you now and for the foreseeable future. But you also need to ensure you don’t over extend yourself. The home should become a millstone around your neck.

So the first step is to set your upper limit. That is what is the maximum spend you can afford or want to make.

Now the total spend is not the budget you have for the home. There are a large number of other items to be included, or deliberately left out, but you need to consider all the elements that go into a home and not be left unhappy because you have run out of money.

Items to be considered are :

  1. Site survey
  2. Design fees
  3. Planning Approval, Building license.
  4. Site access and storage facilities.
  5. Demolition and site preparation.
  6. Siteworks, including retaining walls, dewatering, removal of rock.
  7. Building Contract.
  8. Interior Design fees.
  9. Floor coverings.
  10. Light Fittings.
  11. Landscaping, reticulation and paving.
  12. Children’s play equipment.
  13. Fencing.
  14. Sporting fixtures e.g. basketball net and backboard.
  15. Window treatments.
  16. Home entertainment systems.
  17. Computer infrastructure.
  18. Furniture.
  19. Artwork.
  20. House warming party.

Now you can easily decide some of the items listed are not required in your budget. If you are dealing with a full service builder many of the items listed will be included in the Building Contract. So once you have decided what you do need to include, and you have defined what will be in the builder’s contract you then need to put monetary allowance against the remaining items. The total of those will be offset against your upper limit with the balance being the maximum amount that can be expended on the Building Contract.