Custom Home Building: What to Consider When Planning Your Budget

Building a custom home is an exciting opportunity to design a space that truly reflects your lifestyle, values, and vision. But before the first foundation is poured, one of the most important steps is setting—and managing—a clear, realistic budget.

At Terry Johal Developments, we’ve guided countless clients through the process of building custom homes in Victoria. Here are some of the key considerations when planning your budget, and tips for staying on track without compromising quality or style.

1. Start With Your Priorities

Before diving into numbers, define what matters most to you. Is it the kitchen of your dreams? A spa-like ensuite? Seamless indoor-outdoor living? Understanding your non-negotiables early will help you allocate your budget wisely and avoid costly changes later in the process.

2. Understand All-In Costs—Not Just Construction

Many first-time home builders focus solely on construction costs, but there are several other factors to account for, including:

Land purchase and site preparation
Architectural and design fees
Permits and municipal fees
Landscaping and exterior features
Interior finishes, fixtures, and appliances
Contingency for unexpected expenses

Working with an experienced builder helps ensure all of these costs are considered upfront.

3. Build With the Future in Mind

Think long-term when making budget decisions. Energy-efficient upgrades, quality materials, and smart home systems may require more investment initially, but they often reduce operating costs over time and increase your home’s overall value.

Sustainable building practices are not only better for the environment—they’re often a wise financial choice in the bigger picture.

4. Plan for Custom Details—and Allow Flexibility

Custom homes often evolve during the build process. You might discover a material you love or decide to add an extra feature. That’s why we recommend setting aside a contingency buffer of 10–15% of your total budget to accommodate these decisions without stress.

5. Work With a Transparent Builder

Your builder should be your partner, not just your contractor. At Terry Johal Developments, we’re committed to open communication, accurate cost estimates, and thoughtful guidance at every step. We work closely with you to align your vision and budget from the very beginning—so you can build confidently.

6. Quality Over Quantity

More square footage doesn’t always mean better. Thoughtful, efficient design can deliver more value than simply building bigger. Prioritize craftsmanship, materials, and flow over sheer size—and you’ll create a home that feels luxurious, practical, and timeless.

Building your dream home starts with a clear plan.
At Terry Johal Developments, we’re here to guide you through every phase—from concept to completion—with clarity, craftsmanship, and care.