5 Ways to Avoid Over-Capitalising on Your Home Build
Wembley 2 Storey Addition

5 Ways to Avoid Over-Capitalising on Your Home Build

In Perth, Western Australia, in 2024, it may seem silly to discuss over-capitalising when the real estate market over this way is HOT! However, so are the building costs, so considering over-capitalisation is essential.

At Distinct Building Company, we specialise in helping homeowners strike the perfect balance between creating their dream homes and making the right financial /building decisions.  Here are five ways to guide you in avoiding over-capitalising on your home:

Set a Realistic Budget and Track It Closely

Establishing a realistic budget is the fundamental step in any home-building project. Your budget should encompass all aspects of your renovation or build, including materials, labour costs, permits, design and contingencies. To ensure financial discipline, you can track your expenditures meticulously throughout the project.

Use budgeting tools or spreadsheets to monitor costs and identify deviations early on. It's crucial to communicate your budget clearly with your designer, builder, and any other professionals involved in the project. This transparency ensures everyone is on the same page and can offer suggestions aligning with your financial goals.

For example, opting for cost-effective yet durable materials can help you stay within budget without compromising quality. Consider a kitchen renovation. The homeowner sets a budget but needs to communicate it effectively to their designer and contractor.

As a result, the designer proposes high-end custom cabinetry that significantly exceeds the homeowner's budget. By discussing budget constraints upfront, the homeowner and professionals can collaborate on alternative solutions that achieve both aesthetic goals and financial feasibility.

Consult with a Local Real Estate Agent



 For instance, in a suburban neighbourhood with many families, an agent might emphasise the importance of having an extra spare room, three bathrooms, or a powder room. With this information, homeowners can prioritise renovations or new builds that align with market demands and increase their property's appeal. 

Imagine a suburban homeowner considering a backyard renovation. By consulting with a local agent, they discover that families in their neighbourhood prioritise outdoor entertaining spaces and child-friendly spaces. This insight prompts the homeowner to invest in a nice undercover alfresco area with an outdoor kitchenette, thereby increasing the home's attractiveness to potential buyers in the future when they may sell.

Avoid Overspending on Cabinets and Fixtures

Cabinetry and robes can be expenses in any home renovation, particularly in kitchens and bathrooms. While quality cabinetry is essential for functionality and durability, overspending on elaborate designs or unnecessary features/mechanisms can quickly escalate costs without adding proportional value to your home. 

To illustrate, consider a homeowner when they are designing their kitchen. They would love 2-pac painted cupboards with an excellent shaker profile, a bi-fold door pantry/ tea station or timber accent shelving that makes the space look ultra high-end. While all of this is great and looks amazing, potential homeowners will not see the 30% price increase on the cost of your cabinetry had you just kept it a little simpler and not gone for the higher-end costing items.

Not everyone knows what things cost when it comes to cabinetry, but I can assure you that you need to rein it in if you are worried about over-capitalising your home, as the kitchen is where we see the biggest blowouts on our home builds. 


Kitchen Scullery Mount Hawthorn

Invest Wisely in Curb Appeal and Landscaping


For example, upgrading your front yard with native plants and drought-resistant landscaping enhances the visual appeal and reduces water consumption and maintenance costs. Installing outdoor lighting or a welcoming porch area can create a warm and inviting atmosphere that appeals to prospective buyers.

Do not overlook the impact of landscaping. It creates so much curb appeal and makes driving up the driveway daily so much better!


Opt for Timeless Design Features

When making design choices for your home, aim for timeless appeal rather than following momentary trends. While unique or highly personalised features can showcase your individual style, they may not resonate with future buyers.

Opting for classic design elements ensures broader appeal and longevity. For instance, neutral colour palettes, clean lines, and durable materials like hardwood flooring or granite countertops are timeless choices that withstand changing design trends. Incorporating flexible spaces that can adapt to different uses over time adds functional value and appeals to a wide range of potential buyers. 

Imagine walking into a new home on the market, and the front living room has been painted in your most hated colour! This will automatically stop you from buying the house without knowing it. Then you will, in your mind, devalue that home.

So, if you are considering selling the house soon, just be mindful of your individuality and flair. In conclusion, navigating the complexities of home building in Perth requires thoughtful planning, informed decision-making, and expert guidance.

At Distinct Building Company, we partner with homeowners to achieve their vision of their homes. Whether renovating to improve their living space or preparing to sell, Distinct is here to help. Contact us today to learn how we can help you with your new build. 


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