Thinking of building or renovating? Do your Homework!

According to the ABS, there are currently 72,000 dwellings under construction across Victoria, close to all-time high levels. The number of dwellings currently under construction is 18% above the 10-year average having increased by 10% over the year. The ABS also reports that construction costs have increased by 20% of the past 18 months. We are currently witnessing a BOOM TIME! On the flip side, the building industry is VERY VOLITILE.

The reasons for the huge increase in both buildings works and building costs has been well documented.

I have clients with plans drawn up who simply cannot afford to build. It’s a bit like being given a bar of chocolate and then having to give half of it back.

If you are in a position to be pulling the trigger on your build, then do your homework. I offer the following advice;

• perform extensive due diligence on the builder you choose

• make sure you have a very detailed scope of works, working drawings, building contract, and cost schedule. It’s what’s not in writing that will come back to haunt you.

• always allow a 10-15% buffer on your cost budget

• get a building inspector to perform stage construction inspections before you release major payments