Budgeting for your build
A key part of successfully completing your project and achieving these savings is putting together and working to a realistic budget.
Budgeting for your build
One of your key questions will most certainly be “how much will my project cost?” The good news is that self building is without doubt the most affordable and cost effective way of building your dream home. Self building can yield savings of up to 30% when compared to buying a new house from a builder or developer.
A key part of successfully completing your project and achieving these savings is putting together and working to a realistic budget. Running out of cash on a project is often caused by inaccurate budgeting or deviating from your original plans. In our experience, provided that you are clear about what you want and control your build, there is absolutely no reason why you cannot complete your home within budget and maximise your profit in the process.
At Potton, we always recommend that you obtain expert advice when establishing your budget and we can help put you in touch with the expert that suits you. All our specialists have had many years of experience in building and financially planning self builds and will therefore be able to help you avoid any potential pitfalls.
Our top tips for successfully controlling your self build finances:
Set a realistic and detailed budget – be clear about what you want to build and make sure that you have all the information necessary to put together an accurate budget. At Potton, we complete your construction drawings before you get started enabling detailed budgets to be based on fact.
Try not to deviate from your original plans unless it's absolutely necessary – it's easy to get carried away and start changing your designs once you're in the middle of a project, but changes at this stage can be very costly in both time and money.
Always allow a contingency budget to cover those unexpected costs. In our experience we recommend an allowance of at least 10% of the total cost of the build.
Get your cashflow right – understand how the cashflow will work on your project and at what stages your mortgage provider will release funds. If you need to borrow a high percentage of the project cost, then consider a mortgage product such as BuildStore’s Accelerator which gives you money before each stage of the build.
Plan properly - programme your build and stick to it. Timber frame is one of the fastest forms of construction and can cut the build period by as much as 6 weeks. A shorter build period will reduce financing, rental and plant hire costs making your self build great value for money.
Use tried, trusted and reliable build methods - avoid build methods that can bring unforeseen additional costs. Timber frame is an excellent solution as the offsite manufacture process enables the quality to be controlled so build costs can be fixed. Timber frame is also one of the most reliable methods of build as progress is not weather dependent. At Potton we pass these advantages on to our customers by offering clear, fixed price quotations assuring financial certainty and total peace of mind.
Always employ professionals – it is often said, and is usually the case, that you get what you pay for! Professional advisors, subcontractors and trades people will want to do the job right, first time, every time and will be happy to help you through your build. Potton is no exception; we have an excellent reputation for quality and service and will work with you to deliver the best job possible.
If you’re not sure, ask! – at Potton, we help you through your build from start to finish and are always on hand to answer any questions that you may have.