Before you start building, you should work out your budget for your home.
Here are a few points:
- Remember 25% of total household income is a safe measure or if you can try and run your household on one person’s income.
- 20/10 rule! Have 20% deposit and budget to cover for 10% of interest rate in repayments.
- Build within your means.. so you can still enjoy the little things in life!
Our budget is $450K. So far the land has cost us $157,000 with a $5,000 rebate once we have completed landscaping to the front and fence.
That means we have $293K to spend on the build.
We have some tough decisions to make!