Developing a budget is the first step in achieving your dream home goal. A custom home is one of the significant investments you’ll make, and it requires careful budgeting. Even if you don’t want to overspend, the excitement of new homeownership could cause you to overlook certain expenses which are unnecessary. You wouldn’t want to exhaust your savings. Would you? It’s better to be safe than sorry.
Do you want to keep your finances on track? Here are a few money pitfalls to avoid when building your house as shared by the professional builders in Sydney:-
Don’t max out your mortgage loan
Never borrow money more than you needed from the bank. Yes, just because the bank said that you are eligible for a higher amount than you have applied for based on your monthly income it doesn’t mean that you should go for it. You’ll never know what the future holds for you. Moreover, you should always expect the unexpected expenses that come in life. Ensure not to spend more than 25% of your take-home income per month on your housing costs. In fact, you should choose to spend less than that. Remember, too much debt is very stressful.
Don’t exhaust your savings
You’ll never know when you may have sudden expenses, including medical, repairs, and other expenses. So, make sure to reserve some of your savings when investing in your custom home.
Underestimating utility costs
If you are building a new house that’s bigger than your current place, the utilities are likely to increase as there will be extra square foot to cool and heat. There is no way to know the exact cost until you move in. However, you will have to pay more than what you are spending now.
Building a home that is bigger than what you need
Two or three-storey buildings are beautiful and glorious. But, ensure that you really need a 6000 square foot house before you build it. How long your children will be living with you? Do you plan to have other family members move in with you? Will the mortgage be a burden? Apart from these, you need to consider the maintenance cost of your house, the cost of maintaining a large yard and landscaping, Heating and cooling expenses, etc. the bigger your house, the more expenses.
Overlooking the expenses in your home builder’s contract
It is easy to ignore the costs which are not included in the builder’s contract such as landscaping cost, attic, basement part, etc. It is essential to read the house builders Sydney contract and analyse the costs involved.
If you really do your homework, you could avoid spending too much on your new home and stay within your budget. Are you looking for new home builders in Sydney? We, Quantum Built, can help build your dream home.
The author is one of the best builders in Sydney. Along with the team of professionals, he assists you with architectural plans and government approvals to construction, completion and hand-over of the magical key. Visit https://quantumbuilt.com.au/ for more details.