How to Build Your Custom Home in Melbourne without Breaking the Bank

We all dream of building our own home someday. If you are reading this it means you are ready to take the first huge step. Building a custom home in Melbourne can be one of the biggest investments in one’s life and it is totally normal to feel scared about the budget. It is also […]

We all dream of building our own home someday. If you are reading this it means you are ready to take the first huge step. Building a custom home in Melbourne can be one of the biggest investments in one’s life and it is totally normal to feel scared about the budget. It is also interesting while exploring several features and designs so as to pick the one that best suits you. It is important to strictly adhere to your planned out budget while planning how to build your dream home to avoid impulse buying. There are several unexpected expenses that will occur in the future so it’s better to follow your budget to be able to provide for the unforeseen expenses while preventing a deep hole in your savings or running into debt.

When you don’t carefully plan out your budget when it comes to building the custom home of your dreams, you might end up in situations that will warrant regrets for making such a decision. These are some tips and guidelines that can help you in building your dream home in Melbourne while still within your budget or at an affordable price. 

Choose a Contract for Building your Dream House in Melbourne

When it comes to building a new house, there are three contract types that can be adopted. The Fixed-price Contract, Cost-plus contract, and the Competitive Bid. 

The fixed price contract is the most common type of contract. This contract type contains a risk premium in the total contract sum that covers the unexpected cost that might arise during the construction process. 

The cost-plus contract is a type of bid where you are provided with the estimated cost of your custom house by the builders, and then the final amount for the building process is determined by the actual cost of the builder plus a margin percentage. However, this type of contract is mainly used when the building cost is more than $500,000. 

The competitive contract is also provided by the builder, but in this contract the builder provides a price for your custom home with the design you have selected. Although these two contract types have its pros and cons, you are to choose the one that works just fine for you.

Be a Realist

Do not choose a budget that doesn’t conform to the type of house you want to build, you can’t build a luxurious home Melbourne using a really low budget. You can make inquiries about your budget limitations from your bank before proceeding to select a builder, this would make the selection process easier. You need to be real with yourself on the amount you can afford or the amount you can save up over time. If you choose an unrealistic design that doesn’t align with your budget, then you might be at the verge of abruptly ending your building process midway or not be able to start at all! Make sure your bank will allow you the budget you need for your design – or else you will end up being very disappointed in the end.

Create a Budget for Extra Cost

Performing research with due diligence and being honest about your finances will help in selecting the right Melbourne builder for your construction process. Most times, the cost advertised by builders to the public is not the final price. It is quite advisable to adopt the “buffer” idea, that is, choose to sign a contract that is below your initial budget for your custom house. This is necessary because during the building process you might want to want to upgrade or add more features to your dream house, such as feature tiles or a new type of brick colour. In such cases, since you have a contract below your maximum budget it will be easier to implement these aspects along the way.

Choosing a Design that Works in-line with your Budget

When choosing a design, be open and honest with your builder as they can help you with fitting your desired design within your budget. TheMelbourne builder has a vast knowledge about the designs and if you have chosen an unrealistic, expensive design, they can help you by providing an affordable option or planning the design in such a way that it fits your budget.

You can see that building your custom home based on a budget is not as complicated as you might have imagined. You just have to control some aspects that are important and then you are good to go. Following these few tips will give you all the insight needed to build your dream house without breaking the bank.