Thursday, November 20, 2008

Flywheel – Building – What are you willing to pay?

How much and how long are two phrases that come up quickly in any building project discussion. The answers to both these questions ultimately depend on how organized you are and how much are you willing to pay. But when I say how much are you willing to pay, I’m talking about more than how big or small your budget is. A large part of having a good build project is how you handle the many emotional facets of each phase of the project. This is particularly important if you are planning to be the project manager.

Embarking on a large build project, even a good one, will be one of the most exciting and taxing experiences on your families emotional limits. I’ve seen many relationships seriously tested and some ended by a project that went too long or over budget. It is not to time to build when you are having issues in your marriage or under extreme pressures from work or family commitments.

To help avoid problems you first need to sit down with your spouse and discuss the budget and how you are going to make payments and how much liquid assets do you have available. If you are counting on investments such as your stocks (if you have any left) to carry you through then you may want talk that one through with a financial advisor. Having a good relationship with your lender and thoroughly understanding your borrowing limits and what their expectations are for the project will also help you avoid many sleepless nights.

Some other items to review to reduce your stress levels and whether you should run your own project are:

Do you and your spouse make a good team or is there conflict when a decision needs to be made.

Who should take the lead, you are your spouse. Stats show that 75% of renovation decisions are by females.

Are you planning to live in the house during your reno (remember the divorce dust syndrome). Will you need to live with your in-laws?

Do you have flexibility in work schedule to run your project.

Do you have enough construction knowledge to run the show and make critical decisions.

Are you good working with others and giving directions.

Are you a good at problem solving and are organized.

Can you hold your tongue in a heated discussion with the builder, trades or inspector.

Can you make more money at your job then what you could taking time off to run your job?

Next step – Getting the right people on the bus.

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