CAREFUL SPENDING

BY MEGAN ROTH

Photos courtesy of Sherwin-Williams and the Tile Merchant

Which expenses deserve early investment and which can wait

When you’re building your dream home, initial costs can add up quickly. But that doesn’t mean you have to compromise on quality. It’s important to consider what warrants investment up front and what can be easily upgraded later to lighten the financial load.

When to Splurge

As an overarching principle, splurge on the more permanent parts of the home. Failure to prioritize these expenses can result in higher costs down the road. This includes the structural parts of the house, such as the foundation, framing, insulation, windows and siding.

Before considering where to save, ensure your home is built well, has a solid structure and is energy efficient. Doing so will ensure that your dream home serves you well in the long run. These foundational aspects are difficult to redo, whereas style and amenities can often be changed later with much less hassle.

HVAC systems, for example, should be a high priority. Consider a Manual J calculation, which identifies the appropriate size for your HVAC system based on the space and occupants. Not only will an oversized system cost you more up front, it will be less efficient in the long run.

Don’t be afraid to splurge on windows as well. The correct window choice can save you money down the road by better maintaining temperature inside, thereby increasing energy efficiency.

When to Save

When trying to save, think about what parts of your home can be updated later. For example, choosing modest options for the kitchen, such as flooring or even cabinets, can help reduce costs. Remodeling a kitchen floorplan later to include or change an island or cabinet configuration can be very expensive, while changing countertops or sink choices are more budget friendly.

Although solid hardwood floors are typically seen as the gold standard, engineered wood, laminate and wood lookalike tile can function well. Consider hardwood in some areas and carpeting in others.

Bathrooms present more opportunities for saving. If you want a jetted tub, consider installing a standard tub during construction. Upgrading to a jetted tub in the future will be a breeze.

Lighting is another place you can keep expenses down. The cost difference in light fixtures can be substantial. Consider going with a standard light fixture now, then upgrading to a grander one when your budget allows. Window treatments don’t need to be a splurge, either. The standard option is sufficient until your budget allows for an upgrade. You can even try to sell the standard features once you’ve upgraded.

Leaving the basement unfinished can be a significant way to save. Think about a finishing the basement down the road, but collaborate with your builder about placement of mechanicals to facilitate the best use of space.

As for paint, consider fewer colors in the home, with decorating accents to spice things up. Don’t think of this – or any of these saving approaches – as shorting your home. It’s likely that you’ll have new ideas on everything from color schemes to uses for a basement as you live in the home. Postponing some expenses allows time to better sort out future plans.

The general rule: Spend to complete the home, then improve and personalize down the line.

Keeping paint simple is often cheaper . Use accents and décor to brighten the space . Using laminate flooring can keep down costs while leaving room to upgrade later .