It's important to dream, but before you get far into the planning process, be sure you know how much you can safely spend on your new home. Don't depend on the advice of friends or family. Talk to your banker, accountant or financial adviser.
As you plan your construction budget, don't forget the hidden expenses. You're likely to run into a bundle of costs that aren't included in the building contract. These may include:
- Phone, cable, and Internet connections
- Refrigerator, stove, and laundry appliances
- Furniture (Chances are you'll want many new items for your new home)
- Curtains and window shades
- Carpets
- Flowers, shrubs, and trees
Also consider that your new home may come with higher living costs. Be sure your budget includes:
- Utility costs
- Yard care
- Maintenance
- Taxes
Don't forget the land!
If you have not yet purchased a building lot for your new home, talk with Realtors to get a rough estimate of land costs. Although there may be exceptions to this rule, in general expect that 20 to 25 percent of your new home project will go toward the land.Learn More About Building Costs:
- How Much Will Your New Home Cost?
- How to Build on a Budget
- Before You Build
- How to Choose the Best Mortgage
