How to Create a Building Budget for Your Custom Home

How to Create a Building Budget for Your Custom Home

If you’ve decided to follow in the footsteps of others and build your own home, firstly it’s fair to say that congratulations are in order. It’s an exciting time and it’s hard not to get carried away by the idea of living in your dream home. However, you cannot let this excitement take over. The calmer and more sensible you are during the building part of the process, the happier you’ll be with the end result.

For many, the journey starts with a budget. How much do you have to spend? How much do you want to spend? With this in mind, here are some of the most important considerations for setting a building budget!

  1. Research Historical Projects

Research, research, research – this is the important first step that will prevent your project from disaster. Nowadays, we have the internet, and this is a wonderful place to contact architects, estate agents, and builders. Research similar projects whether this is similar in size/nature or similar in location. If you’ve bought land next to another custom house, speak with the owners and get advice.

During the research stage, you can also look at property prices in the area. Learn about the ‘per square meter’ value of properties in the area to discern more about the location and what you should be spending.

  1. Consider the Land Itself

If you don’t already have land in mind, find the balance between the land and the building process. Are you willing to push for a cost-efficient building process for more expensive land? Or would you rather save on the land and spend more on the building process? Remember, this is your dream home. Considerations for the ‘right’ land include proximity to work, schools, family, shopping, and entertainment.

  1. Think About Your Perfect Home

For some landowners, they contact a builder with little idea of what they actually want and need. Before reaching this stage, sit down (with your partner, if applicable) and discuss the core aspects of what will make your dream home…well, a dream. Do you want a large garage? A good-sized garden for future children? A certain number of rooms? An open-plan design in the kitchen?

When you have a list of core features, then you can approach a builder like By Projects Architecture and have early conversations about building your home. As you come up with a basic layout for the property, the builder will consider materials and designs. From here, they can normally generate an estimated cost.

  1. Remember Land Improvement

Just because you have the land, it doesn’t necessarily mean you can start the work immediately. Sometimes, you may need to perform some work on the land itself, and this is important to remember when creating a building budget. This might include the following:

  1. Don’t Forget the Small Extras

This is all, right? Wrong, and many homeowners forget to budget for the additional extras like cabinets, appliances, and other items that make a house a home. While on the topic of extras, it’s always wise to budget a contingency fund just in case the project goes over-budget.

Summary

How do you create a building budget for your custom home? Research historical projects and talk with experts in the field, consider the land, think about your perfect home, remember the potential of land improvement, and don’t forget the small extras. Also, work with builders early because their experience could prove invaluable. With a budget, you’re one step closer to that dream home!