The Tribune

Adhering to the five ‘Ps’ can remove the hassles involved in building your own home, Raymond Antonio says.

Building a home can be an exciting venture for first-time homeowners. But it’s important for that process to be done right the first time.

Create a plan customised to fit what works best for you and satisfies your personal needs. No one wants to spend unnecessary cash, time and energy only to discover that there were a few hiccups along the way, which have to be added on top of other expenses. To avoid unnecessary headaches, I invite new homebuilders to remember the “Five Ps” before pouring that first layer of foundation: Perfect Planning Prevents Poor Performance and in doing so consider a few suggestions.

How deep is your pocketbook?

As you begin to plan your new home, the first step should be to decide on a figure that is most affordable for you. Keep in mind that the larger the home, the larger the mortgage payments, maintenance, utilities bills and taxes. Don’t forget to factor in the 7.5 per cent Value Added Tax (VAT) on goods and services, as well as Real Property Tax.

The percentage levied on properties varies according to value. The first $250,000 of market value is tax exempt. Property valued at more than $250,000 and not exceeding $500,000 is subject to 0.75 per cent. Property valued at more than $500,000 but not exceeding $5,000,000 is one per cent.

It is also recommended that a minimum of two-thirds of what you can afford be allocated toward building. Because it is extraordinarily rare for a home to come in at or under budget, it is advisable to allocate an additional amount for extras that always seem to present themselves as essentials.

List priorities

In determining how much house you will really need, be a realist. Think of how many bedrooms and bathrooms your family needs now or in the future. Do you want a family room, a living room, or both? Have you thought of any extra spaces in the home such as libraries, home office, study, playrooms? How big will the garage be and will it be part of the home or detached?

All of these thoughts will have different budget adjustments depending on the features, sizes and amounts of these rooms. These are just a few questions to ask yourself when planning out the dimensions of your new abode. Remember that what works for one household will not work for another.

It’s always good to dream but don’t overbuild - it’s one of the most frequently made mistakes. Remember that your home should be custom-made to accommodate your pocketbook as well as the lifestyle of your household providing maximum functionality.

Make proper use of your property and ensure that you obey the building codes put in place for your neighbourhood. Observe the homes around you, and build your new dwelling accordingly.

Call on experts

The best advice anyone can give you when building your dream home is to make as many preparations in advance as possible, but hire a professional contractor to make that dream a reality. Do your research and enlist the services of a reputable construction company to build your home while you stand by and watch the process come together from the foundation, up. There are many horror stories out there about persons who ended up with faulty foundations, improper masonry, poor plumbing, incorrect fixtures and leaky roofs. Pricing of these mishaps can be mind-blowing and avoided. Budget for the experts. Getting this done right on the first go will save you heartache later.

Enjoy your investment

Building your first home is a rewarding experience but while you are planning construction take some time to consider these points and make your home something that will stand the test of time. Remember, your home is probably the biggest investment you’ll ever make so planning and doing it right, the first time is key to assuring the final result if your happiness.

NEXT WEEK: Lisa Carroll on the importance of “curb appeal”

Raymond Antonio is a Sales Agent and Appraisal Associate with Mario Carey Realty with 30 years experience of the banking and mortgage industry. He is a Fellow of the Bahamas Institute of Financial Services.