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How To Create A Budget For Your Custom Home Design

STEP 1: How To Create A Budget For Your Custom Home Design

Are you planning to build a custom new home, and unsure of where to start? The process can be overwhelming, but it is one of those most exciting experiences as well! We have created a guide to help you along this journey.

This step-by-step guide takes you through the complex process of designing and building your custom dream home.

 

STEP 1: CREATING A BUDGET FOR YOUR PROJECT

Before you make any other decisions, it is critical that you determine what your budget is. When it comes to design, there is nothing worse than going through the process and falling in love with a design only to find out it is out of reach. We have the knowledge and skill to focus on the elements that matter the most to you. This process does not come without stressors, but your designer and builder are there to support you, and ensure you receive the best design to fit your budget and wish list.

FIND A MORTGAGE LENDER

The first step should always be determining what you can afford, either through your bank or a private mortgage broker. Your mortgage lender will need to see your tax returns, sources of income, and any savings account statements. If you get approved for a large loan, it may or may not be in your best interest to borrow the full amount. It is also wise to take your income stability and the strength of the housing market into consideration

THE 25% RULE

The quickest way to estimate your budget is the 25% rule. Take your total take home pay, including all sources of income and calculate 25% of that. Your total mortgage payment each month, plus other expenses such as your property taxes, home insurance, utilities…etc. should be less than this amount.

EXPENSES BEYOND THE MORTGAGE

Getting pre-approved for your mortgage is important, but it is only one of many considerations. People often overlook proposed yearly property taxes. The size of the home, and the neighbourhood both influence the property tax values. Generally speaking, the larger the home the more expensive the property taxes will be. You will also need to consider home insurance, utilities, and maintenance costs. Also take any other debts you may be carrying into consideration. Ideally, your monthly debt costs each month should be below 40% of your take home pay.

FINDING YOUR NEIGHBOURHOOD

Real estate values vary from neighbourhood to neighbourhood, city to city, and county to county. If you have your heart set on a particular neighbourhood, we suggest doing some research on the average costs of homes in the area, and the average cost per square foot. You can also find out the average lot price, and what the minimum square footage required to build in the neighbourhood is. This will also help you determine if the home you want to build fits within your budget.

Being honest and letting your builder and designer know this number helps us to make sure we are designing within reason and to make sure you get the best design. We have the knowledge and skill to be able to “cut” costs in areas of the design where it’s not as important and really put the focus and dollars into the areas that matter most to you.

Choosing a Residential Designer to Create Your Dream Home

Home Designing and building a home can be one of the largest investments you’ll ever make. The world of home design can be difficult to navigate and seem overwhelming at times. That’s why choosing a knowledgeable designer is key. At Boss Design, designing dream homes is all about the details. It takes commitment to the whole project, not just to one portion of the work.
It’s this philosophy that founder and principal designer, Jeremy Walter, has followed since the beginning.

Walter attended the Architectural Technology program at NAIT and then went on to work at an architectural firm. However, Walter soon realized that commercial and industrial design wasn’t the path he wanted to take. Home is where the heart is. Walter joined a local boutique home builder and found his calling in residential design.

For more than a decade, Walter and his team have been working with clients to make their dream homes a reality.

“We have built ourselves solely on referrals because of our quality of work, our integrity and our passion to design a home clients are proud of. Nothing leaves this office that isn’t something I would design and build for my family,” says Walter.

Walter adds that there’s a lot of emotion involved in designing a home for someone. No project is the same and that’s always exciting. Boss Design offers everything from design, drafting and 3D renderings to construction management, value engineering and marketing materials.

What sets Boss Design apart?
Walter and most of his senior staff have all designed their homes and continue to enjoy living in them today.

“A home designer should have knowledge of the market, attention to detail and proven expertise in their field. Every foot of development in a design directly affects the overall cost to build a home. One mistake can cost thousands of dollars, but taking the time to plan can also save thousands of dollars,” says Walter.

Walter and his team have a proven track record of success in home design, and recently took home the CHBA Edmonton award in the Provides Service to a Builder category. Boss has also shared awards with local builders who have won local, provincial and national awards for the projects Boss has designed.

3D technology for home design
The ability to see every aspect of a home before its built is a fundamental step. Boss Design was one of the early adopters of this industry game changer. The technology gives designers the ability to 3D render any house, on any angle, at any time of the day. Designers can create renderings of the inside and outside of a home with the exact finishes, before the home has even started to be built. This creates a clear vision for clients.

With technology comes great responsibility Many people can draw a house plan on paper, but this technology can showcase the smallest details in a home. And its these details that can be the most important. What some clients may like on paper, they don’t like once they see a rendering. With this 3D technology, changes can be made to a plan quickly, and new concepts and ideas can be fully explored.

3D technology for home design
The ability to see every aspect of a home before its built is a fundamental step. Boss Design was one of the early adopters of this industry game changer. The technology gives designers the ability to 3D render any house, on any angle, at any time of the day. Designers can create renderings of the inside and outside of a home with the exact finishes, before the home has even started to be built. This creates a clear vision for clients.

With technology comes great responsibility Many people can draw a house plan on paper, but this technology can showcase the smallest details in a home. And its these details that can be the most important. What some clients may like on paper, they don’t like once they see a rendering. With this 3D technology, changes can be made to a plan quickly, and new concepts and ideas can be fully explored.

Designing for success
Whether you have decided to design and build your first home, or the retirement home you’ve always wanted, Boss Design can guide you from start to finish.

“It’s our responsibility to ensure our clients have the information they need to complete the design and construction of their dream home,” adds Walter. “We believe in creating lasting relationships with our clients and pride ourselves on designing a home you can be proud of.”

Big Boss Win!

Boss Design attended the CHBA Edmonton Region Awards of Excellence, with a nomination in the Provides Service Directly to a Builder/Renovator category.

Boss Design has been very fortunate to collaborate and provide designs for several projects and clients that have gone on to win Regional, Provincial, and National CHBA Awards. At this years CHBA Edmonton Region Awards of Excellence, held at the Shaw Conference Center, we had the opportunity to enter our own category. We were so lucky to not only be named a finalist, but to go on and win the award for Provides Service Directly to a Builder/Renovator!

After 11 years of hard work, we are so appreciative to be recognized by our peers in the industry, and want to thank all of our amazing builder and private clients for helping us reach this point as a company. We also want to thank our wonderful team for the hard work and detail they put into each plan that comes through our door.

We also wanted to extend a huge congratulations to two of our long standing clients, who also took home a win at the CHBA. Alair Homes Edmonton & Bengel Custom Homes won for Best Renovation $200,000 to $500,00 and Best Single Family $600,000 to $800,000.

CHBA WIN!!!

Whole house $200,000 – $500,000 ALAIR HOMES design by BOSS DESIGN.

Thank you Canadian Home Builder’s Association for this recognition and honour!

CHBA Alberta Awards of Excellence in Housing 2016


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