How To Set a Realistic Building Budget

So, you’ve made the decision to build a new home. Congratulations! This decision requires a lot of time and money, and it is a big commitment. However, the end result is a home you’ll love for years to come, or an investment in your future. It’s an exciting journey that can seem slightly overwhelming at the start, especially when you’re unsure of the first step. And that’s why we’re here to help!

Once you’ve decided building is right for you, it’s time to set a realistic building budget. Here are four key considerations you’ll need to establish your set of numbers.

1. Write a list of your non-negotiables, and your ‘nice to have’ items

It’s important to determine your new home must haves and what you’d like to have, if affordable, at the start of your budget creation process.

To do this, begin by making a list of everything you want in your new home. Take out two different coloured highlighters, and mark your non-negotiables and then your ‘nice to have’ items. You’ll end up with two much more realistic lists to work off when creating your budget.

This list should include things such as the ideal number of bedrooms and bathrooms, zones and spaces, size, landscaping, and structural and interior items like wooden floors, natural materials, lighting, and so on.

2. Choose the right builder

This is one of the most crucial steps in establishing your realistic building budget. Shop around, read reviews and contact builders who align with your values and vision. Choose a builder who you believe will have good, open communication, and be trustworthy and transparent with costs.

A good builder brings their expertise and understanding of construction costs to the table, and helps you establish a realistic budget for your goals. You’ll know if you’ve chosen the right builder when they are honest with what is achievable from your non-negotiables and upfront about the construction costs.

3. Pre-plan for any unexpected costs

While unforeseen costs are disappointing, having foresight can result in you saving money in the long-run. It’s inevitable that something unexpected will happen while building, and oftentimes it’s unavoidable. Put aside part of your budget for any such surprises. And, if nothing comes up, you’ll have extra money in the bank for some of your ‘nice to have’ items!

4. Make selections as soon as possible

A good way to stick to your budget is to make selections in a timely manner. This includes selecting fixtures and fittings before signing a contract, ensuring costs remain on budget as much as possible. This may seem difficult at the beginning of your building journey, so take your time to ensure you are happy with your selections. Making last minute changes can easily derail your budget.

Do you feel you’re ready to start setting a realistic budget for your new home build? Get in touch with the team at Nicon Built today, and we’ll talk with you about your goals, non-negotiables and timeline to help you establish a realistic budget to achieve your dream home.

Ready to start your building journey?