Planning your budget
Invest in the long term
For most people a home is much more than a place to live, it's a long-term investment. This is your opportunity to find a home that's not only good value upfront, but holds its value over time. Your decisions at this stage will have important consequences for your future, so you want to get it right.
When you start looking at homes, it's easy to focus on the short term - 'what can I afford right now?' But when you think about it, ongoing costs are really important too. For example, an energy efficient home means lower energy bills, so you can use the savings to pay off your mortgage faster.
Times are changing rapidly and new issues need to be factored into smart investment decisions. This is sometimes called 'future proofing' - making sure that your investment will hold its value over time.
Protect your investment against rising energy, water and petrol costs by ensuring your home saves energy and water and is close to everything you need, including public transport. Choose long-lasting, durable materials that don't need a lot of maintenance.
These choices also have an impact on resale value. Regulations for new buildings are getting stricter all the time, and when you sell your home you want it to be able to compete with newer, more energy and water efficient homes.
Factor in all the costs
When you visit a display home village, the prices displayed are usually base house prices, from which point you can choose additional upgrades and features. It's often difficult to compare 'apples with apples' because what's offered as a standard inclusion by one home building company may not be offered by another.
Many home buyers say they wish they'd known about the hidden costs right from the start. To help with your budgeting, check with your builder about which of the following items are included in the price you've been quoted:
- council approval fees
- construction insurance premiums
- soil test by a qualified engineer
- connections to services
- excavation and drainage
- driveways and landscaping
- legally required construction extras (e.g. scaffolding, security fencing)
- lighting
- floor finishes (e.g. carpet, tiles etc.)
- kitchen cabinets, benchtops, sinks and appliances
- curtains and blinds.
Make sure the cost of meeting State and local council regulations (such as extra insulation, rainwater tanks, etc.) has been factored into the quoted price.