Tips You Need to Know When Building A New Home

Building a new home signifies a new phase in life. In some countries, a new home represents a new status. However, building a new home requires more than good intentions and funds. The following are some of the best tips you should put into consideration when building a new home.

Start with a comprehensive planning

In the world of construction, planning is an important step. If not well checked, an error in preparation has the potential of ruining the whole project. As a homeowner, you should not only purpose to have comprehensive planning, but you should consider the following factors.

First, you should plan where you want to erect your home. Lack of a proper deliberation on where you want to build your home can mean two things. First, uncertainty is an indication that you might have a challenge as far as your topography is concerned. Second, if you do not plan where you want to build your home, you may incur costs in the future due to the quality of soil and general topography.

Second, you should plan the time you intend to use in the construction. Labor in most countries is expensive, and lack of a proper plan translates to more working hours. However, planning for the time you want to spend in a project helps in adjusting the labor cost and evaluating if the estimated time is ideal for your project or not.

Budget for unbudgeted

In most cases, people budget for only visible expenses. However, statistics show that in any construction project, the cost budget is always lower compared to the actual cost. As a property owner, you should, therefore, budget for the unbudgeted. Although there are no criteria for budgeting the unbudgeted, you should consider the following guidelines.

First, you should consider the global inflation, which is about 1.7% per year. If the project runs for three years, you should add 5.1% on your initial budget. The main advantage of considering global inflation is that it helps in adjusting future prices on building materials.

Second, you should also consider budgeting for additional labor expenses. In some cases, the budgeted estimates may be lower, especially considering some factors such as other activities during the construction. In this case, you should budget an additional 10% of the budgeted labor cost.

The advantage of budgeting for the ‘unbudgeted ‘is that in case the amount is unused; it is still yours as a property owner.

Evaluate your financing options

Financing is an important consideration in any major construction project. Therefore, it is critical to evaluate the available financing options before starting a project. In 2019, there are many financing options for builders and potential homeowners. However, not all options are ideal for you. You should, therefore, consider the following factors when selecting a perfect plan.

First, any financing options should give you a competitive interest. One of the factors that push many people away from the financing options is unfavorable interest rates. Although there are no standard rates on interests, any financing option should give you a better option for the repayment period. The plan should also give you a chance to renegotiate the payment plan.

Thirdly, you should research if there is a financing option that gives simple interests. Although most financing options calculate interests in the form of compound interest, there are few (still) using simple interest.

Have a ‘resale option’ in mind

In the last decade, the resale option has become an important factor in the world of properties. Experts, for example, rank buildings with high resale options as better compared to others with lower resale value. As a property owner, this is an important consideration. How should you do to make your property better in the resale market?

First, go with a design that is not too common and not too experimental. Understanding which home model is versatile is an important place to start. Second, pundits point that using high-quality materials is important in possible future resale. Quality materials translate to the longevity of a property and more importantly, better property value.

However, the primary purpose of building a home should not be centered around this factor. For example, you should not fear to create a personalized home because of ‘lowering the resale value.’ learn More