The allocation of the budget in a new home build can vary depending on factors like location, size, design, and personal preferences. However, certain areas can typically consume a significant portion of the budget. We all want the best bang for our buck, right?!
Here are the common areas where we see people tend to spend the most in the construction of their new home:
Construction & Labor Costs:
This is typically the largest portion of the budget and includes the expenses related to the foundation, framing, roofing, insulation, electrical, plumbing, and HVAC systems. Labor costs, including the general contractor and subcontractors, also fall into this category. These construction elements are incredibly important to the smooth running of your project, alongside quality trades selected by your builder, so don’t skip out on quality – select the best builder you can afford.
Foundation & Structural Elements:
A solid foundation and structural components are essential for a safe and durable home. Investing in a high-quality foundation and structure is crucial.
Architectural Design & Engineering:
The architectural and engineering design phase can involve significant costs, especially for custom or complex designs. This includes design fees, permits, and site preparation. Liaising with your chosen builder throughout this stage of the process is key to maintaining your ‘budget vs reality’.
Kitchen:
Kitchens are often the heart of a home. They are always are a major focal point for many new home builds and can be the one room in the house that really captivates family, friends and guests. An inviting kitchen brings people together.
Clients will tend to invest a significant amount in quality appliances, cabinetry, stone bench tops and timeless fixtures. High-end appliances and custom cabinetry can substantially increase costs, however, depending on your budget, can be worth the investment in terms of quality and longevity of the products. A great point to keep in mind is also resale value! If your kitchen is effortlessly charming, with high quality fixtures and fittings, it can be a huge selling point for potential buyers in the future.
Bathrooms:
Bathrooms, particularly the master bathroom, receive lots of attention (and funds!) for good reason. People often spend extra on those key and popular design features, such as double vanities, walk-in showers and freestanding baths, all bought together seamlessly with high-quality tiles and fixtures.
This often comes down to personal taste and preference, as well as potential for resale value, but it also adds a little sparkle and shine to a new home build. There is something to be said for walking into a clean, fresh and light bathroom space, somewhere that the homeowners can feel tranquil and escape after a long, hard day. A standout bathroom in terms of high quality and materials is definitely a worthy investment in a new home build.
Flooring:
The choice of quality flooring material can significantly impact the budget. Hardwood, polished concrete or tile flooring tends to be more expensive than carpet or laminate, but an area that we feel is truly important to get right. The wrong flooring can cheapen the finish of your new home and we have found that there are great hybrid ranges available for all types of flooring budgets.
Exterior Finishes:
Exterior finishes like cladding, roofing, and landscaping can be costly. High-quality materials, unique designs, and extensive landscaping can really bring your project together, however, they can also consume large portions of your budget without careful planning.
This is where your Builder can help navigate through ideas with you. A good tip would be to ask your Builder if they are able to show you examples of the type of exterior cladding that you are interested in, perhaps on previous projects they have produced, to gauge the final look vs how much it costs. This can assist you in making the right decision for your new home build – and your budget.
Another great tip would be to engage a landscape designer to create something within your budget, as they will be able to highlight all the best areas to make your home truly stand out (without breaking the bank!)
Windows & Doors:
Energy-efficient windows and quality doors can be expensive but are vital for energy savings and security. They will definitely save you money in the long run!
Energy Efficiency:
Many homeowners prioritise energy-efficient features, such as insulation, HVAC systems, and solar panels. These can be costlier upfront but can absolutely lead to long-term savings and as far as we are concerned, a good investment for added value in the home.
Customisation & Upgrades:
Personalisation and customisation, including unique architectural features, built-ins, and high-end finishes, can significantly increase costs.
Land Costs:
In some cases, the cost of the land itself can be a substantial part of the budget, particularly in desirable locations. Be sure to shop around – or – consider buying a property that needs some work, as renovations can sometimes be less costly and time consuming. We are seeing a ride here in South Australia with client’s choosing renovation works to existing properties to increase value and add space.
Interior Finishes:
Paint works and interior doors are details that can sometimes add up, especially in larger homes with intricate designs. Open communication with your design team and builder are key here, in order to maintain quality and affordability within your budget. Adding your own flare and style with unique homewares, bedding and furniture can be an affordable way to create interest in your home, without spending thousands of dollars.
Conclusion:
It’s essential to carefully plan and allocate your budget based on your priorities and needs. Prioritising quality and durability in critical structural and functional components is crucial. Your preferences and lifestyle will determine where you choose to allocate additional funds for customisation and personalisation. Working with a reputable builder and a secure, well planned budget can help you make informed decisions about your build.
