Sunk Cost or Investment.
Your custom build or renovation project will incur significant costs before you arrive at the build stage. Cost for your architect or building designer, interior designer, thermal performance assessor, engineers, bushfire assessments, permits, etc.
These are referred to as ‘sunk costs’ and cannot be recovered whether your project moves forward or not.
When we incur these costs intentionally with the right design team and consultants, they invest in protecting your future home's beauty, liveability and build cost. They only really become lost or sunk if your project doesn’t eventuate- Which, unfortunately, is happening in record numbers of late.
When this happens, your pre-project costs are sunk, and so are your hopes and dreams for a new home. It’s a devastating position.
Earlier this year, I met with a gorgeous couple, George and Lisa. One year prior, they had purchased land intending to build their dream home. As empty nesters, they wanted a home that lived like a generous apartment when they were home alone but could open up and accommodate frequently visiting kids and grandkids when needed.
They’d sunk a lot of money, time and effort into design and permitting, only to learn that the build price exceeded $1M over budget. Yep- You heard right; more than $1M over.
Like most of us, they didn’t have a spare $1M lying around.
They were forced back to the drawing board to re-design, re-engineer, re-permit and re-price. Their first round of money is sunk. It didn’t eventuate into anything other than heartache and frustration. This next round, we’ve made sure, is an investment in getting it right.
I’m pleased to update you that George and Lisa are about to break ground on their gorgeous and ‘on-budget’ future home right now.
So, will your pre-build costs be sunk or invested? By creating a game plan for you and your project, we can ensure it’s the latter.
P.S. The end of 2023 is approaching fast. If your vision for 2024 includes a new custom build or reno, time is of the essence. November- January is notoriously hectic in the resi-build industry. So, if you are serious about building or renovating in 2024 and getting it right- Reach out or book a ‘Discovery-20’. I only have two Home Build Mentoring programs left available for 2023, and I’d love to help get you started on the right path.