Have you started or planned on your project last year but got stuck because of the price increase?
Maybe you are a homeowner who planned to renovate or rebuild your home last year. You have set aside your fund, you have done the research, and you have even gone as far as getting estimates to plan for your budget.
Then, in the middle of 2022 last year, everything changes!
The supply chain in the construction industry is interrupted which causes price hikes for the materials. There is also a skilled labour shortage which pushes the cost of labour to go up. Coupled with that interest rate and inflation also goes up. The estimated cost you had in 2022 has gone up to 15-20% in 2023. What you can buy with $100 last year can’t buy the same thing in 2023.
Should you proceed with the project? Should you put it on the back burner and wait till the price goes down? Will the price go down? You wish you have a crystal ball to look into the future for an answer.
One thing you know, you need to do something to your home to improve your living condition. Time is not in your corner. You have waited for this time to do your home before this global event happened.
Your future home is a home for you to grow old in. You need a home that is comfortable and safe for you to nestle in when you are not as mobile in your golden years.
Or maybe you are a family who enjoys travel pre-Covid season. However, with the recent increased fuel cost, travel becomes very expensive for your family of 5. You are more likely to stay home a lot more now, perhaps doing more entertaining at home with family and friends. You want a home that is as comfortable and enjoyable to stay in as a resort or holiday home.
Those are homeowner’s dilemmas in 2023!
Is there a solution to this dilemma? You don’t want to feel stuck in the mode of ‘wait and see’ or indecision. What can you do?
Here are some steps you can take:
- Take a deep breath.
- Keep this in mind: it is not anyone’s fault. Let’s stay focused on finding the solution and not the problem or the blame game. We are all on the same boat; you, your family and your team of experts, if you have started your project halfway.
- Revisit your goal and your Why. Why do you want to do this home project? Your Why will become the most important thing to base on for all your decisions moving forward.
- Ask yourself these questions:
- Do I have time to wait one year, two years, or indefinitely before starting the project again?
- If the price keeps on going up, would I regret not taking action now?
- What are the consequences of not proceeding with this project now?
- What are my alternatives if I am not doing this project now?
Keep in mind that your answers need to go back to your Why.
- Revisit your budget. Can you afford to increase the budget? How much more? What is your new budget?
- Revisit your project brief; your must-have list and your wish list. Strike out items that are not in line with your Why. For example, your Why is to have a comfortable and safe home to grow old in. You have on your list to design a kitchen with mostly drawers for easy access. However, you know that drawers are more expensive than just cupboards with shelving.
Even though striking those items will cut your cost, you can’t take those items off the list because those drawers are in line with your Why. You need them for easy access in your golden years to prevent injury or falling down. Their value far exceeds their dollar cost.
You can, however, find other items that are not as essential or in line with your Why. For example, a less expensive kitchen benchtop, tapware, extra guest room or lighting fixtures.
- Discuss your revised list with the person who gave you the cost estimate or work with your team of experts, if you have started the project halfway. Check and work with them on what other ways you can bring back the cost to your new budget. Renegotiate and work with them in the spirit of collaboration and not contention.
I believe when you take those steps above, you’ll not be stuck in indecision. You will be ahead and more prepared than anyone else when the market takes a turn. Most importantly, you will not live with regrets of making wrong decisions or choices.
Reach out to us if you are stuck and needed help with the steps above.
Book a FREE clarity call with us. We will help you with a one-page blueprint to move you forward with clarity and without regret.
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