TIP

CityPress - - Business & Tenders -

When it comes to build­ing or ren­o­vat­ing your home, it’s im­por­tant to re­mem­ber that un­fore­seen costs al­most al­ways crop up.

Adrian Goslett, re­gional di­rec­tor and CEO of RE/MAX, says: “Sev­eral as­pects could have an ef­fect on the cost of the project, such as de­lays in the sched­ule caused by weather or labour strikes. It is not un­com­mon for a project to cost 20% more than the orig­i­nal es­ti­mate. Much like sav­ing for a de­posit to pur­chase an ex­ist­ing home, those who de­cide to build will need to have some cash set aside.”

If you are con­sid­er­ing some build­ing work, one way to fi­nance it would be through a build­ing loan.

This lump sum amount is not paid to you, but is man­aged by the bank and given to the con­trac­tor as re­quired.

A ben­e­fit of this is that you don’t pay any in­ter­est on the money that has not been handed over.

“The progress of the con­struc­tion will be as­sessed by an as­ses­sor from the bank, who will de­ter­mine the amount of the loan that will be paid to the con­trac­tor,” Goslett says.

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