Are you planning to build dual occupancy homes? It’s a great choice, especially since there are many benefits of having dual occupancy homes. Some of these benefits include having continuous income, increasing property value, and accommodating multigenerational living. In addition, if you want to occupy one of the houses, you can do so, and rent the other one out.
However, one of the challenges you may encounter is running out of budget. It’s not just with building dual occupancy homes, but building a new home in general. However, with dual occupancy homes, you’re going to build two houses in one property, so it can be more expensive.
In this article, we’ll discuss some tips for avoiding budget overruns when building dual occupancy homes.
1. Start with a Clear Plan
Just like any other construction project, start by having a clear, detailed plan. In doing so, it’s best to work with a professional architect or designer, so that they can turn your ideas into a structured plan.
Without the plan, you won’t be able to start the construction, and it may cost more money. Meanwhile, when working with professionals, ensure to have a list of the things you need to include in the dual occupancy homes, so that you won’t have to tell them afterwards. At the same time, you should know how to compromise, especially when things can affect your budget.
2. Set a Realistic Budget (and Save for Emergencies)
Of course, you can’t pursue your plans if you don’t have a realistic budget. Aside from the fixed budget, you should also save something for contingencies. It’s usually around 10 to 15% of the fixed budget. Usually, contingency can be delayed due to weather or schedule problems, the price of the material fluctuates, and other site issues.
In addition, don’t forget to consider the processing fees for the construction permit, landscaping, council approvals, HOA fees, and other financial or legal fees.
3. Choose the Right Builder
Another thing that can significantly help you achieve your dual occupancy homes on a budget is by choosing the right builders.
But even if you’re planning to achieve a specific budget for the construction, avoid hiring the first builder and the cheapest one. Usually, when you compare quotations from various builders, the difference isn’t too high or low. However, if you stumble upon a builder whose offerings are significantly low, don’t be tempted to take it. Instead, you should do your research, ask for recommendations, check the reviews from past clients, and look at the quality of their work. In addition, check if they have enough experience in building dual-occupancy homes.
4. Understand the Contract
Even if you’ve found the right builder, you still need to check and understand the contract before signing it. Besides, clients may have different experiences, so don’t be too comfortable even if their past clients are satisfied with the results of their homes.
You can hire a real estate lawyer to go over the contract and explain the things you need to focus on. For instance, if you agree on a fixed-price contract, you should still look at the fine print, since there may be other things that aren’t covered in the fixed price you’re going to pay, and the cost of the delays may also not be clearly stated.
5. Avoid Changing Designs During Construction
Once the construction starts, avoid making unnecessary changes in the design. Besides, if you have already worked with a professional, the parts of the design must already be in their optimal form, and changing them may just become a problem later on.
In addition, once you make some changes in the design of the dual occupancy home, the permits and other documents may also need to be updated. In the end, you’ll have to spend more than expected.
6. Hire a Professional Project Manager
If you can’t be at the site as often as possible, you can just hire a project manager, who can look out for the construction progress instead of you. However, even if you have a project manager, you should still be updated about the progress and challenges on the site.
When you opt to hire a professional project manager, make sure that they have enough knowledge and experience about managing a dual occupancy home construction project. In addition, they should be able to negotiate, track the costs, and ensure that everything is moving forward according to plan.
7. Stay Involved and Communicate
As the construction process moves forward, ensure to stay involved and openly communicate with everyone. Choose the most ideal way to communicate with the project manager, builder, and other professionals, so you won’t encounter problems, such as not being able to check their messages.
In addition, whenever you visit the site or have meetings with the people working on your dual occupancy homes, ensure to tell them your concerns, and learn to understand theirs.
Final Thoughts
Building dual occupancy homes can be an amazing achievement. However, there are also challenges that you may encounter before you can finally enjoy your new property. By considering the tips discussed in this article, you can avoid budget overruns when building dual occupancy homes.
