The Cost Of Custom Homes and Renovations Will Rise In 2018

Be prepared to pay more for your renovations and custom home build in 2018.

The cost of construction is rising and doesn't look like its going to settle down anytime soon. If you are planning to build or renovate in 2018 then you need to adjust your budget accordingly.

Here are some of the reasons why construction is going to cost more in 2018;

• A building boom. There is a building boom in our area, builders are busier then they have ever been before. That means that they have the ability to pick and choose the jobs that they want to take on, gone are the days of pricing jobs low just to stay busy.
• Material costs. Building materials have doubled in price in the last 6 months. That means that the raw building materials could cost you anywhere from 50 to 100,000 dollars more then in early 2017. It has become so bad that there is an actual lumber shortage at most lumber yards for a lot of products.
• Labour. With a bunch of law changes coming from the provincial government and a minimum wage increase the cost of all labour will be going up in 2018. All businesses will have to raise there rates to cover the increase in costs.
• Trades shortage. There is a severe shortage of trades in most areas. Tilers, masons, plumbers are getting harder to secure because they are under such a demand for their services.
• Big Business. Large corporations are buying up smaller businesses and consolidating them so that they have a monopoly. Insulators, concrete suppliers, waterproofers, mechanical contractors are just a few of the trades that are being bought up and controlled by a handful of large corporations. This means that they will be able to artificially inflate the cost of what they provide.
• Land costs. If you are looking to build a custom you are going to have to pay more for your building lot with the hot real estate market.
• Building Code Changes. The building code has had dramatic changes in the last 5 years with the amount of insulation required rising and the overall energy efficiency of homes having to rise. Eventhough this is a good thing in the long run it usually means that it will cost you more money upfront to build.

Whatever you are planning to do in 2018 whether it is building a custom home, renovating or adding an addition be prepared to pay more then you did in 2017. You will have to approach the project with a contingency fund to help offset the costs that are rising so that you don't end up in a situation where you run out of money before the project is finished.

Rob Abbott

Village Builders Inc.

Don't skimp when you are going to renovate your home!

Don't Skimp!

It's good business to take a close look at the costs of any remodeling project. We work closely with our clients to trim any fat from their budget. We're always looking for strategies that may actually improve the finished house while staying within our clients' financial targets. We call this process value engineering.
But some cuts can go too deep. These cuts are different than value engineering, we call them skimping. Skimping is not an investment. When you skimp, you save a few dollars today only to pay more in the future. This category of cost reduction can compromise the performance of your remodeled home and put its value at risk.

But when is it better to pay a bit more up front to ensure that your project performs as promised and results in your complete satisfaction for years to come?

Much of what you should not skimp on is behind the finishes. Because you can't see or touch these components, understanding their value is critical. These include areas that save energy, protect against moisture damage, enhance durability, or reduce maintenance chores and costs. In almost every case, it's worthwhile to pay now instead of suffering the consequences later.

The Structure. It probably goes without saying, but the quality of the foundation and structural frame of your home or addition is paramount and should never be sacrificed for budget reasons.
A professional remodeler will work to optimize, but never compromise, whatever foundation and framing system is appropriate for the project.

Energy and Water Efficiency. The ongoing costs of home energy and potable water are rising and are likely to continue. It makes good financial sense to invest in systems and products that achieve comprehensive and reliable savings for these resources and their costs.
Vital components include properly applied insulation, high-performance windows, right-sized and efficient heating and cooling equipment, adequate fresh-air ventilation, brand-name appliances, and water-saving faucets, showerheads, toilets, and water heating systems. Consider including these items in the budget at the highest level of quality and efficiency you can afford.

Exterior Finishes. Your home's ability to defend itself against weather conditions from the summer sun, high winds and heavy rain is critical to its durability, maintenance and performance.
If replacing or adding exterior finishes is part of your remodeling project, resist the temptation to downgrade the roofing, siding, trim, and other components for the sake of saving a few dollars. As with your home's structure and primary systems, it's smarter to pay a little more up front for exterior finishes that stand the test of time and weather. In the long run, you'll spend less money and time fixing loose clapboards, repainting the trim and replacing the roof.

Drainage. The problems associated with a poor gutter, downspout, and rainwater removal system are legend ... and very costly. Worse, they usually aren't apparent right away. Over time, moisture damage caused by poor site drainage leads to latent defects that can undermine the structural integrity of your house.
A well-designed drainage scheme within a larger scope of a remodeling project effectively captures and directs rainwater off of the roof and away from the foundation. In this way water can't find its way and fester along the foundation, under the roof shingles, or behind the walls.
Materials choices vary, but trust your remodeling contractor to understand the dynamics of storm water management and provide your home with what it takes to deliver a dependable solution for your new home.

Flooring. There is no other surface inside your house that takes as much abuse as your floors. If new or replacement floor finishes are part of your home improvement plans, it makes sense to buy the best-quality carpeting, tile, wood, and resilient materials your budget permits.
In addition to holding up to foot traffic, spills, cleaning solutions, sudden impact and other hazards of daily life, your floors must retain their good looks to maintain your satisfaction and reduce repair and replacement costs as long as possible.

Finally, and perhaps most important, you should not skimp on your remodeler. If you are going to invest time and money in an extensive home improvement project, seek out and be willing to invest in a true remodeling professional. You'll be buying a treasure chest of skill, knowledge, and experience that will be well worth the price.

Warm Regards,

Doug Abbott
Village Builders


 This is an exert from a newsletter that is distributed to all former, current and future clients of Village Builders Inc. It is written by the President Doug Abbott. If you would like to receive this newsletter feel free to email me at www.robabbott@villagebuilders.ca

Rob Abbott
Operations Manager
Village Builders Inc.