WHAT DO I NEED TO KNOW ABOUT MY BUDGET?

JANUARY 2021

The budget is the very first project planning aspect to be resolved, since this will influence most, if not all decisions pertaining to your project. The home building and buying process is notorious for the unforeseen escalation of costs, the risk of which exists regardless of the size of the project that you are planning. There are a number of factors that could give rise to cost-creep, some can be controlled or avoided altogether, some less so. Correct budget allocation is a controllable aspect. It would be sensible to take a cautious view of the financing that will be made available for the project. Inexperience may cause one to disregard the need for contingency reserves, putting one in a financial bind during later project phases. Proper project execution requires a realistic budget and business plan, from which follows, adequate provision for contingencies. In addition, the following aspects need to be taken into consideration, wish list in hand, for procuring either a site or an existing house:

 

  • Location
  • Price
  • Market trends
  • Property taxes
  • Rates and levies
  • Condition of property – extent of additions or upgrades

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