Building a new home is a super exciting time however most people would agree that it comes with a lot of stress. This stress can be reduced if there were less unexpected costs that comes with the build. This video and article intends to reduce the amount of unexpected costs, allowing you to prepare sufficient funds.
There are various costs that comes with building your own home. An obvious cost would be the cost of the build. This would include the costs of labour, materials and the builder’s margin. It is generally a good idea to have forward budgeted for each of the trades and all that the materials will cost you. Another unexpected cost of building would be the costs of plans and approvals. This is normally the cost that is often forgotten. This include architectural plans and the fees that come with them, as well as the fees the council will charge to assess and approve your plans. In addition to that would be the costs of upgrades to a building contract. This would be things like better finishes, carpets, kitchens, landscapes and etc. It is always a good idea to negotiate these upgrades before you enter the building contract to avoid further costs.
Some Building Tips…
A good tip to avoid the stress of unexpected building costs is to always expect delays in your building. Almost all build project experience delays. Therefore, it is a good idea to have extra cashflow available for extended rental periods or management of interest and repayments or etc. A good rule of thumb is to have 15% of your build price worth of buffer funds available for additional extra costs. Watch the video above for more details on building your first home. For more tips like this visit Rise High Tv !
Do you have any questions or are looking to explore your options when it comes to construction loans? Leave your details below and one of our team members will be in touch with you soon!
