Building costs are going through the roof, so it’s more important than ever to take a mindful approach to your new home budget. Make sure you: know your financial limits, have contingencies in your budget; and have open lines of communication with your builder. Another element to consider is which aspects of your new home are non-negotiable and which are you willing to forgo, if all else fails.
Begin by examining your budget. Work back from there to determine the pricing of the home you’re looking at. It’s easy to do but don’t assume that because you have got a $500 000 budget, that you are buying a $500 000 home. Build in a contingency for rising costs and materials from the start. In our experience, we would recommend you work to a minimum 20 percent budget contingency. Manor Homes works closely with our clients to keep them informed during the building process so that you can monitor how much of your contingency you may need.
Our process will actually provide more clarity about final costs. With long council wait times, often once a home is eventually approved by council, prices will have gone up. We wait until after the council process to confirm all of your upgrades and selections, so that if material costs have increased significantly in this time, you can make an informed decision on both of these. You might be better off sticking to things you can’t easily change later on, for example, high ceilings and a kitchen layout you love. The niceties of more expensive kitchen cabinet doors or benchtops are easier to upgrade in the future.
Think long term when you budget for your build to ensure you can have your dream home now and the ability to renovate when prices are more accessible. Manor Homes are available to work with you every step of the way to help you navigate these uncertain times.
