How to Stay on Track and Avoid Budget Blow-Out

How to Stay on Track and Avoid Budget Blow-Out

Building a new home is a substantial investment and therefore it’s vital you get it right!  Unfortunately, the dream of home ownership can turn into a stressful and expensive nightmare if finances aren’t controlled carefully.

In this article we are going to look at the common causes of budget blow-out and then how to avoid these pitfalls and come out the other end happy and on budget.

Most new builds have the potential to go over budget for the following reasons:

  • Not enough time is spent planning before the project commences
  • Misleading documentation leaving room for error and quotation inaccuracies
  • Unrealistic expectations – dreaming beyond affordability
  • Making changes after construction has commenced.
  • Taking too long – overrunning the projected timeline

Cost control and preventing budget blow-outs starts from the very beginning.  It begins with the new home builder you choose, the brief you provide, the choices you make and the way you communicate with your builder – not to mention the level of restraint you maintain throughout the construction process.

The following tips will help you remain on track and avoid the common hazards of budget blow-out:

  1. Plan carefully

We all know that the success of any project is in the planning!  Whilst the decision to build your new dream home is exciting and all you want to do is break ground and get started; take the time needed in the early planning phase to avoid costly mistakes down the track. Understand what you want to and are happy to invest, then speak with your consultant about this, we help you keep things on target and manage your spending, after all we want you to be able to afford it without stress.

  1. Precise & comprehensive documentation

Select a master builder, who is committed to transparency, providing all-inclusive documentation that specifically summarises every aspect of the construction of your house.  Headstart Homes, Christchurch Builders, will give you a breakdown of costs  for the upgrades you are wishing to add and inclusions before you are required to sign the building contract.  This gives you peace of mind knowing what the project will cost from the outset, plus realistic time frames.

  1. Dream (shop) within your means

Fully understand the cost implications of the selections you make.  Have a very clear and realistic vision of what you want in conjunction with what you can realistically afford.  Headstart Homes Sales Consultants can help guide you through the selection process to ensure you get the best design and value for your money, without compromising on functionality and lifestyle.

  1. Avoid delays – time is money!

Once construction begins, any delay in the process can be costly therefore avoid slowing things down unless absolutely necessary.  Delays may result in having to reschedule tradespeople, additional interest payments, and if renting, more going to pay the landlords mortgage. These costly consequences can be avoided by staying within the original timeline.

  1. Avoid making changes during construction

As a first homeowner it’s difficult to think of everything before building starts, however making constant changes during construction can really blow the budget.  As mentioned above, when you’re in the planning stage, making changes is relatively inexpensive.  However, once the build has started, most changes will cost you – both in time, money and stress, so if you are thinking to add something later discuss earlier with your consultant to understand the implications, and together we decide if it’s better to add in now or later.

Prioritise your wish list too, this helps us understand what’s important to you, and include the things you want, and leave the things that aren’t so important, there is always a compromise somewhere!

The good news is Headstart Homes is committed to working with clients to ensure the build process is a positive experience, finishing on time and on budget.  For more information about our new home designs or house and land packages, call us today for a FREE consultation – ph. 0508 442556.