Budgets & Costings
At BuildStore Mortgage Services. we're acutely aware of the importance of matching cashflow to project stage. We look at each customer's situation individually and work out a tailored package with the lender that ensures adequate funding is available at each stage.
Every day is a pay away day!
- Land/project purchasse
- Build costs (materials & labour)
- Unexpected expenses (contingency)
- Ongoing living costs (mortgage/rent)
While there may be no such thing as a typical homebuilding project - each coming with its own unique set of challenges and opportunities - every project does have identifiable stages of development, from the digging of the foundations to the final fix. And at each stage, as the value of the build increases, your lender will release a percentage of your overall funds, so it's critical that you understand exactly what your project is going to cost you at each stage, so that you have enough money to meet your expenses.
Make sure that you've worked out precisely how much money you'll need to pay out for materials, tradesmen and specialist services at each stage so that your available funds match our project.
For example, a timber construction is more expensive in the early stages than a brick and block build as you have to pay for the whole system up front. It's also essential to have agreed payment terms with builders and other tradespeople in advance of work starting.
If the right funds aren't available at the right stages of the build, delays are inevitable (and often expensive). In the worst case scenario, materials may not be delivered and your builders may be forced to move on to projects elsewhere.