Budgeting For A Passive House

Marvel Homes

Planning to build your forever home? Watch this video to discover the game-changing 5 Bucket Budgeting Analogy that will empower you to take control of your custom home build costs!   https://www.youtube.com/watch?v=YX9UFdJKVms&pp=0gcJCbAJAYcqIYzv

Transcript

00:00Welcome to our site session videos. Today's topic is all about budgeting.

00:12Budgeting and the way we break it is falls into five buckets. This is one of the analogies that

00:17I use with all my clients. Five buckets. Bucket number one is your budget bucket. That's every

00:23dollar that you would like and comfortably you put in there towards your dream home.

00:27Bucket number two is design and approvals. This is everything we need to do in terms of paperwork,

00:34architectural drafting and demolition cost. If it's a knockdown rebuild, if it's not,

00:41then you're winning because you can save that money towards your build. Bucket number three

00:45is selections and upgrades. This is everything to do with your personal touches to make the home

00:51your personal home. This is to do with finishes, floor covering, tile selections, accessories,

00:58joinery, and the list goes on. There's about a hundred line items in every custom home that you

01:04literally have an input in. Bucket number four is construction cost. This is for the built area.

01:11The built area is calculated between the porch and the alfresco. Everything in between is the built

01:19area. It's where the builder has all the control. If they have the right specification and documentation,

01:25then you're good to go. You're on a winning project and a successful build. Bucket number five

01:31is landscaping. Landscaping has everything to do with driveways, grass, boundary fences, front fence,

01:39mailbox, and swimming pools. Now, with each of those buckets, they get fed from the first top bucket,

01:47which is your budget bucket. Now, there is a critical element that needs to go into here.

01:53What's called a complexity dial. The complexity dial is independent and it goes to each area of those

02:01four buckets at the bottom. The complexity dial is, for example, I have two clients. Client number one

02:08and client number two, they both wanted a Hampton Home Passive Certified House. And we're like,

02:13okay, and these are actually our clients. Client number one, this is their facade. Client number two

02:20is the following. You don't need to be a builder, but side by side, we can immediately see that

02:27client number two requires more details. What does that mean? That means the complexity

02:34for their construction bucket, the complexity dial for their construction bucket has increased.

02:39I would need more money. So, for example, if we were to put equal percentages across all the buckets,

02:47just to make it easier for this example, right? Let's just equally percent. 25, 25, 25, 25 brings it

02:54to 100%, correct? Now, because the complexity in the construction of that Hampton design has increased,

03:02that means that 25% can no longer be 25%, it needs to be more. So, I've got two options to increase that

03:12bucket allowance or the budget there. Option one is we take from a neighboring bucket,

03:17couple of percentage, and put it into the construction bucket, right? So, this could be from the selections

03:23of the landscaping. Option number two is we increase the master budget bucket, okay? And that's basically

03:32increasing your budget. From a million, you might need to go to 1.1 or 1.2, doesn't matter. The point

03:39is, once you have that clarity, you're far better informed in making your decisions, in progressing

03:47forward and actually achieving your dream home to exactly what you wanted without sort of going into

03:54stressful situations. And that's what it really boils down to. You can build with a custom home

03:59builder. You can build with a project home builder. It is essentially the same principle for buckets,

04:07and they need to be supplied and funded by the main principle bucket. What you can affect is not the

04:14bucket, say so, but it's the complexity dial. The complexity dial is what you can turn up and turn

04:21down to allow you to achieve the outcomes you're after. So, all in all, it's not straightforward.

04:28It is complex. That's how we approach it here at Marvel. It's always four buckets. We always allocate

04:34the right resources. So, what you need to do to protect your dream home and to have what you want at the

04:41end of it and not be stressed is at design stage, whatever complexity dial you increase, the team

04:49has to be able to channel how that will impact the remaining three buckets and they cannot be discussed

04:57in silos. The moment they are discussed in silos, you've lost all control. Now, you might say,

05:04well, okay, that's a lot of specifications to kind of figure out at hello when you need somebody and

05:10you are correct and it is a lot of time and it's not straightforward. That's what makes this space

05:16quite interesting for us because of the challenges it brings. What we do, you see right here behind me,

05:23I'm on one of my sites. It's a certified passive house build. What we do with all our clients,

05:30once we start designing and working with them, we bring them to one of our existing builds. They

05:34get to see the finishes. They get to see the selections. What I do to make things much simpler

05:40is that I incorporate the same choices to a degree into our contracts, into our design, into our

05:48thinking and planning. So, when a client comes and visits one of our sites, they get to see some of

05:53the items. They know exactly what they are going to be expecting. The advantages as well, when we come

06:01to site and sort of, you know, review things that if your site is similar to this, then we can know

06:06exactly the construction costs you might be looking at. And because of that approach, it saves us time

06:13from trying to recalculate specifically for your project. It saves you time from trying to commit to

06:17anybody at hello. And as well as it's helping everybody in the space to actually achieve and do

06:24the right thing. That's pretty much it. So, I hope that video has been beneficial. There will be a

06:31series of them where we call them site session tours or site sessions where we dive deeper into longer

06:37format videos to help you build your dream home regardless who you're going to be going with.

06:43That's it for me, guys. I hope that was beneficial to help you in building your dream home.

06:47Just make sure to subscribe and click on the bell icon. It just helps to let YouTube algorithm know

06:53that we're making worthwhile content. See you on the next video.

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