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13 Financial Mistakes You Should Avoid While Building Your Dream Home

We all fantasize about building our own Dream House. Something that isn’t just bought off the market, but has a personal sentimental value attached to it. With innovations in building tools and availability of raw materials, your dream house can finally become a reality.

Building your own house comes with a lot of perks. Like easy customization, personal designs and most importantly, fit your budget.

But honestly, it comes with equally difficult challenges too. And the most impacting disaster that can happen is in your pockets and bank account.

But don’t fret, for your blood and sweat, won’t be in vain. You can tackle your financial worries about your new dream house with these few tips. Don’t let your dream house be just a subject of your imagination.

  1. Keep your budget slightly higher than usual

Keeping a budget higher than planned can save your house. Custom built houses usually end up costing a lot more than calculated. We often try to keep a tight budget for our house, inclusive of construction, furnishings, electronics, and maintenance.

What we fail to understand is the constant fluctuations in the market for things like refrigerator, television sets or furniture. So keep a margin when you fix a budget, so you don’t have to compromise on your commodities.

  1. Fix your floor plan

Firmly determine your designs and the room sizes for your house. Interior décor like flooring tiles, false ceilings, and wall color can either make your house look spacious or congested. This detailing has to be well planned before you start building your house.

Replacing tiles or making changes in your room size can cost you; a lot. You wouldn’t want to feel disappointed in your home after spending so much time, efforts and money. So planning your interior before you start building is a very good decision.

Exotic Modern Mansion in Singapore-The Fish House by Guz Architects Homesthetics

  1. Compare your construction bids wisely

Construction bids can be very difficult to read, especially if you’re building a custom house for the first time. Selecting the lowest bid can cost you in the long run because you run a risk of compromising on the quality of your new house.

And as mentioned in the first point, your house can cost a lot more than previously anticipated. You can choose your contractors based on their rates for square foot pricing, assembly pricing or unit pricing.

  1. Choose an experienced contractor

You might wonder that choosing your contractor can burden you with more finances. So you might be giving a thought to becoming your own contractor. As wise as that decision sounds in theory, it’s practically not.

Inexperience, in this case, can actually make you spend more money than hiring a contractor would do. Contractors are quite skilled in handling legal and estate issues, something that can overwhelm first timers a lot. They can also make sure that your dream project stays within budget.

  1. Living life, King size might not be the way to go

Exotic Modern Mansion in Singapore-The Fish House by Guz Architects Homesthetics

Don’t think of a big house, but do think of a big picture. You might think that building a big, spacious mansion fitting your budget might be possible, but it will just create a huge void in your pockets as well as your home space. Downsizing a house can financially and emotionally drain you.

What you once thought can be your dream house, can end up being a burden. If you don’t have a big family, building a house too big is unnecessary. It also saves up on a lot of maintenance like cleaning, electricals, and plumbing. Eliminating even 500 square feet of unnecessary housing area can save around $50,000 from your entire budget.

  1. Don’t compromise on your amenities

Compromising on your extra amenities is a big mistake. Building a house and later realizing that you need upgrades, like extra space in your backyard, an extra floor, or a basement, can cost you more than you think. To put things in perspective, changing tiles and furnishings can cost nothing compared to getting your house upgraded.

You must give a thought to all the extra expenditure you might have like buying a car, or school and college tuition fees. So you possibly cannot prioritize on either of them in the time of need. Thus, always try to keep options open.

  1. Don’t go for huge purchases while building your house

We’ve seen how much building a custom house itself can cost a lot. Adding another huge expenditure to it can put you in serious debt. Buying a new car to go with the new house can seem very clever and tempting, but it can drastically alter your mortgage eligibility.

So if you’re thinking of buying a new car or new furniture, wait till you have signed your mortgage papers. Or better yet, try making these purchases before you start the building and mortgage processes.

  1. Estimate the required raw material properly

Leave a margin of expenditure on building supplies. Most housing budgets only consider the raw material needed to construct the framing, millwork, and lumber. What it doesn’t include, is the cost and extra raw material required for windows, doors and roofing material.

The wood and metal needed to build the framework of the house can differ a lot from the wood needed for doors and windows. We often try to use the high-quality material for these visible woodworks, which also have different market rates; for instance, redwood costs twice as much as cedar. Adding glass and metal to that can alter your previous financial judgment.

  1. Replace old roof shingles with new ones

Exotic Modern Mansion in Singapore-The Fish House by Guz Architects Homesthetics

Speaking of external building material, we must also pay attention to the roofing of the house. The roof makes up the second most important part of the house after walls and floors. You possibly cannot haggle for a significant need for roofing.

Covering old roof shingles with new ones can cost you more than replacing all of them. New roof shingles can allow water seepage during heavy rains, which allows dirt and mold to grow, eventually damaging both old and new shingles. Thus, replacing all of them might look high on the bill, but it’s more efficient in the long run.

  1. Don’t reuse metal flashings for your roof

Another significant part of roofing is the metal flashing. It seals up weak spots on your roof where water can find a place to trickle down and drip over your heads.

Although most old metal flashing can seem purposeful for reuse, it can actually damage the roof around your chimneys and skylights. Replacing all the flashings at once can be quite reassuring than reusing old ones.

  1. Keep visiting your construction site

Check in on the work in progress. Reality is seldom as surprising as a good dream, but it can surprise you in many unpleasant ways. Plumbing and electrical wiring can be the major issue here. Visiting the site during construction can save a lot of future troubles.

In the end, it’s your house, and you get every right to ask questions and demand results. Matching your expectations is your contractor’s duty, and you must not allow them to cut corners. All that matters is your house is sturdy and safe, and convenient to use.

  1. Hire trustworthy and skilled workers

As mentioned above, plumbing and electrical wiring is where the quality of the house can be compromised. So hire licensed contractors, electricians, and plumbers to ensure the safety of your family. Make sure you build enough trust to consign them to the important task of ensuring your future safety.

  1. Discuss the resale value of your house

  2. Exotic Modern Mansion in Singapore-The Fish House by Guz Architects Homesthetics

Last but not the least; think of resale value soon. Even though you might not want to sell it early, you might not know when you might have to. A dream house that takes a lot of time, efforts, expectations, and money to build, shouldn’t deserve to be sold off at a price lowered by thousands.

A project as emotionally driven as a custom-made house shouldn’t let reality triumph over your dream. So make sure you plan your dream home smartly. Good luck!

The post 13 Financial Mistakes You Should Avoid While Building Your Dream Home appeared first on Homesthetics - Inspiring ideas for your home..



This post first appeared on Homesthetics Magazine - Architecture Art Design, please read the originial post: here

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13 Financial Mistakes You Should Avoid While Building Your Dream Home

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