How to Take All Potential Costs into Consideration When Building a Custom Home

Is your new dream home the result of some blue-sky thinking? Many people have a vision and want to make it a reality if they can. Due to modern-day building techniques and contractor enthusiasm, this is often quite possible. It's important to bear in mind, however, that the budget can be difficult to pin down, especially as there may be a few variables and issues to overcome as the job progresses. What are some areas to bear in mind when formulating your budget and cash flow?

Services

If you've chosen a location that is off the beaten path, then you will have to factor in some survey costs so that the builder is totally aware of what they have to work with. They will need to test the soil to determine its composition so they can choose the building method, and they may have to allocate some preparatory work to level off the site.

Registration

If yours is the first property in this general area, then you may need to register the land with the local authority. In addition, you may have to pay to extend utility lines to the property boundary or factor in the costs of septic tanks and wells.

Resistance

Many areas of Australia can suffer in the event of a natural disaster. Your property may be situated on the edge of a bushfire zone, and it will need to be configured so that it can resist this risk as much as possible. Likewise, if you are building in a low-lying area, the property will need to be altered so that it can provide the necessary amount of protection against a major flood.

Modifications

You must have a certain amount of leeway when it comes to your cash flow to account for unforeseen costs. While the builder will aim to control these as much as possible, they may have to bring in extra material or labour or apply for additional approval from the regulator. Remember that if you want to make any modifications as you go along, this can lead to additional review, authorisation and development costs.

Flow of Funds

Have a word with your financiers, if you're using any, so you get a clear picture about fund availability. Budget carefully for cash flow, and don't forget to include insurance on your mortgage to protect the risk.

The Possibilities Are Endless

You will be surprised how flexible home builders can be and what you can collectively achieve, given the right resources. Make sure you share your dream with them in its entirety so that you are one step closer to moving in. To learn more about building a custom home, check out websites like http://www.seapointehomes.com.au.