Renovate or Reinvent? 7 Reasons Why Building a New Home May Be Your Best Choice

Are you wondering whether you are better off going out and building your dream home from scratch, or buying an existing house and renovating it to suit your needs? Everyone's situation is unique, but here are 7 powerful reasons why building a new home may serve you better than trying to re-create a house that already exists.

1. It's your own dream! When you build from scratch, you can design the home of your dreams. You create the house the way you want it, to suit your family's individual needs and priorities.
2. No skeletons in the closet. The existing housing stock is invariably old, and in need of renovation, requiring more money. Often, when you buy an existing home, you will need to replace plumbing, and install a new kitchen, and and and. These costs add up fast.
3. Location location location. Many people believe that they can't afford to build new in the location of their choice, and can only choose from the existing housing stock. In reality, there are many small to medium builders who can build you a new home in the location you desire at a competitive price. Their building techniques differ from Volume Builders which allows them to access more challenging blocks, without charging the Earth.
4. New homes, well built, require little maintenance. The older the existing home, the greater the maintenance that is needed, whether you tackle these jobs yourself, or hire someone to do them for you. This includes attending to hot water systems that may be antiquated, spouting, roofing and decking. When a good builder puts it in place new, then you will have no headaches about any of these areas.
5. Orientation. You can design the orientation of your home specifically to suit your land, maximizing your particular location both for view and for sunlight.
6. Save money. Lots of money. When you maximize your orientation to North, and build accordingly, you save enormously in your ongoing costs of living, both for heating and cooling.
7. Last but not least, New Houses are better built. Much better. Building standards have improved enormously in recent years, now incorporating 6 star energy efficiency, and double glazed windows. Double glazed windows will make a house more comfortable, far beyond most people's expectations.

So while you will have your own check list to consider, take some time to look beyond any apparent differences in cost and feasibility. Building new does not have to be a financial nightmare, if you find the right builder. And in terms of comfort, quality, ongoing expenses, and your freedom to bring your own dreams to life, building your own home will often prove to be by far the most satisfying solution.

3 Fatal Mistakes When Buying A New Home

Buying a new home is truly an exciting venture and if its family home then its even more exciting. A home is so much more than just a roof over your head. It reflects your life, your lifestyle and gives a family that sense of belonging and feeling safe inside the four walls. Apart from that, any home is a significant investment and its probably the biggest investment you will ever make. For that very reason its important that you make the investment wisely.

So many people make silly mistakes when buying a new home. Some mistakes can be costly financially while some mistakes can cost you in terms of space and comfort. Lets quickly look at 3 very common mistakes.

1. Impulse Buying
Buying a pair of shoes on impulse is probably okay. Buying a new home on impulse definitely ain't. So many people get swept up by their excitement when they first see a home they really like and end up buying it - on impulse. You need to set your emotions aside when making any investment and look at it from a practical and logical perspective.

2. Location
No matter what property you buy, location is critically important. No matter how great the property, you need to look at the broader context to truly access its value. Proximity to schools, public transport and amenities are very important aspects that can affect the resale value of the property.

3. Price
No matter what you are buying there is one important thing that is always negotiable and that is the price. Sellers want to get as much as possible while buyers want to save as much as possible. Its important that you always get an accurate evaluation of the value of the property in the current market and never pay more than that.

Getting a Handle on Home Building Costs

Home building cost overruns can plague any home building or remodeling project. This occurs so frequently that it is recommended you include a 5 - 10% contingency fund in your budget. This will be used for items that you will have no control over, such as problems found with the land once excavation has begun.

Use the 5 tips in this article to control home building costs & minimize cost overruns.

Tip 1: Planning Your Home Building Costs Take the time to plan on paper what you want your house to look like. When doing your budget, visit stores to look at appliances, fixtures, cabinets, flooring, etc. In doing so, you will have a clearer idea of what you want and more importantly, what it will cost. Then, build that amount into your budget so there are no surprises later.

Tip 2: Specify Home Building Materials When working with a contractor, be sure that the specific materials you expect to be used are included in the bid and subsequently, in the contract. If your plans say wood floors and you are expecting teak and get oak, your recourse is limited because you did not specify it in writing.

Tip 3: Change Orders If you take the time to plan your home building project on paper before breaking ground, you can minimize the number of Change Orders. Change Orders frequently increase the cost of your project because they were not planned for in the original budgeting. If you agree to a change order and there is an expense involved, you are responsible for those costs unless the contractor has agreed he will pay for the change. Depending upon the extent of the change, it can involve modifying the original plans and having the local building authority review the changes including the labor and materials. Always keep an eye on any changes to the original plan and design and take the time to determine the financial impact of the change on your project. Changes to construction projects represent the single most common reason a project goes over budget and/or the completion is delayed. Take the time to plan before you build.

Tip 4: Size, Style and Shape of the Home These three factors can significantly contribute to the cost of building your dream home.

• Size - Work with even numbers and have your home size rounded up or down to increments of two (2) feet. This reduces wasted materials. Also, build a home no deeper than 32 feet to eliminate the need for specially designed trusses.
• Style - Typically, it will cost less to build a two-story home than a one-story home of similar square footage. A two-story home will have a smaller roof and foundation. In addition, plumbing and ventilation are more compact in two-story homes.
• Shape - Having more corners and angles will increase the amount of labor and materials needed to build your dream home. A rectangular or box shaped home will cost less to build.

Tip 5: Two Most Common Times for Cost Overruns The beginning of your home building & construction project - when you are doing excavation and possibly putting in a well. You won't know what is under the ground until you begin to excavate. If you are drilling for a well, you will have no control over how far down you will need to drill for water. This is where having a contingency fund is essential.

The second most common time for a cost overrun is near the end of the project when you are selecting your finishes, i.e., cabinets, counter-tops, lighting and plumbing fixtures, flooring, appliances, etc. If you took the time to shop around before you did your budget, you can more easily stay within your budget when you do your final selections.

Cost overruns are common in any home building project, but with knowledge and planning they can be kept within manageable boundaries.