If you’ve been loving our new podcast series Building the Dream, you’ll already have a handle on why it makes sense to build over buying an existing property, and some insights into the ideal location for your dream home.
Episode three takes a deep dive into arguably the most important consideration: how do you figure out the right budget to build a new home?
Our home-building experts at Metricon can help guide you through exactly what you need to know to make the right decision.
Keep an eye on the big picture
Richard Bryant, General Manager of South Australia at Metricon, says that building a new home is, for most people, “The largest financial and emotional investment they’ll make… it literally changes people’s lives.”
That’s why it’s so important to go in with your eyes wide open and understand exactly what’s involved in making the Australian dream a reality, especially if it’s your first time. “How a lot of customers come unstuck is when they don’t keep their design ambitions and their budget in sync,” Richard says.
So, what do you need to factor into working up a realistic budget to build a new home?
First up, get realistic financial advice on how much you can actually afford to borrow while servicing your existing cost of living, and don’t push your borrowing limit too far!
Before the builders break ground, you’ll want to understand all the costs involved in the build price. How much will the block of land cost? (if you don’t already own it)? Will you need demolition work completed? What site costs do you need to factor into your budget when building a new home? Even the best-looking block can throw up some unexpected challenges. Who is liable? And if it’s you, is there enough wiggle room in your budget to accommodate these unforeseen outlays?
Understanding your contract and who is responsible for different aspects of the process is so important. You must also be across local council planning rules and ensure your build meets the requirements. Getting this stage wrong can escalate costs pretty quickly.
Get the details right, and there will be no nasty surprises along the way.
Set, and stick to your budget
We understand it’s an exciting time, but one of the biggest risks of a budget blowout is entirely in the customer’s hands. As Richard puts it, “You can spend $200 on a bath, or $2,000 on a bath.”
When you visit our beautiful Studio M selection centres, there are so many options to consider when choosing your ideal fixtures and fittings. Take the time to figure out what works best for you, but prioritise the ‘musts’ over the ‘wants’. Once you’ve made those budget decisions, stick to them. Indulging in unplanned upgrades here, there and everywhere can soon wrack up a scary bill. It pays to be disciplined.
That carries through to the finishing touches outdoors. If you’re committed to a new build, you need to know if it includes landscaping costs, fencing, and the driveway. The last thing you want is to be five minutes from moving in and be faced with bills you hadn’t planned for.
Spend well where it counts most
Budgeting is essential, but so is knowing when spending a little bit more upfront goes a long way. Tania Tonks, the Regional North Manager at Metricon, regrets not following a builder’s advice to splash out $600 more on a better exhaust fan for her stove when she built.
“We just didn’t have the budget space at the time. But if you broke it down over 20 years, it probably would have been a good idea. Because now when we put the exhaust fan on, it’s like blasting everybody out of the house. And it’s in the main space where everyone is all the time. So every time I turn it on, I think he was right.”
Hindsight is great, but budget well from the outset and you’ll be onto a winner in your brand new home.
You can listen to our Building the Dream podcast on all major apps, including Apple Podcasts, Google Podcasts, and Spotify.
