One of the most challenging things about homebuilding is sticking to your planned budget. It’s difficult not to get carried away when shopping and browsing through home 米乐体育m6网址, cabinetry, and facades—everything you see looks amazing, but does everything fit your budget?
Creating a budget and sticking to it is one of the most important steps in homebuilding. Not only will a clear budget help you stay on track with your build and give your builder a clear idea of your expectations, but it also makes the homebuilding process less stressful.
At Icon Homes, we always build in alignment with your expectations and budget to ensure that every first homebuyer and builder has a pleasant experience. Here are our top tips to help you plan and, more importantly, stick to your budget when building your dream home.
Begin with a plan for your budget
They say that failing to plan is planning to fail, and nowhere does this ring more true than with budgeting. Many first-time homebuyers launch into buying and building without a proper plan and find themselves more out of pocket than they anticipated, or worse, entirely out of funds.
Here at Icon Homes, we always ensure that everything runs according to plan. To ensure your project doesn’t run over budget, create a list of categories of the biggest costs you think will be. For example, block or land, exterior, and interior costs. Next, create subcategories under each heading and list the costs these categories will have.
Remember that you will most likely be living and paying for your new home for years to come, so every choice you make will affect how you feel about your home. Creating categories and discussing them with your home builder will help you visualise how and what the result will be.
Create your “fire extinguisher” fund
In building your new dream home, there may be little bumps in the road that cost you extra. Bad weather, delayed deliveries, and even a change of mind can affect your budget. A fire extinguisher fund in your budget will help to cover this.
A phrase made popular by The Barefoot Investor Scott Pape; a fire extinguisher fund is an emergency savings fund for when you need it. Rather than dipping into your overall budget, a fire extinguisher account is there for you to pay for additional costs and cover any last-minute excess.
Choose the right builder for you.
Choosing the right builder for your dream home is critical—remember that the most expensive builder doesn’t always mean the best!
A good builder will listen to your needs and thoughts and give you an honest budget estimate. Do as much research as possible and speak with several builders before making your decision.
Here at Icon Homes, we are committed to providing you with every snippet of information you could ever need when building your dream home. This includes budgets, extra fees, options for materials, upgrades, and anything else that will affect your wallet.
Communication is key
Once you have your chosen builder, prioritise being honest, up-front, and transparent with them about your budget and expectations.
Make sure to outline your budgetary needs and expectations to help avoid roadblocks, unexpected costs, and disappointment. Most builders, such as Icon Homes, will be able to give you regular updates on your build and budget progress.
Be prepared to be flexible.
While you may have an idea of your dream home, be prepared for things to change.
While you may have a strict budget, costs can shift and change, and you must be prepared to make compromises. This could look like switching from a premium facade to a less expensive one or dipping into your emergency fund for a better tiling option.
Speak to your builder if these unexpected costs are too much for your budget–communication will make everything easier to understand. Above all, remember that this is the home building process, and your builder (and fire extinguisher fund) will help.
Curious to find out what your home building budget can achieve? Looking to build your dream home without overstretching your budget? Icon Homes is here to help! Contact one of our team members to find out more about sticking to your budget, building options, and what your dream home will look like.
