Six Tips For Building On A Budget
Although building a home allows you to design a space that perfectly suits your needs, it’s a significant investment where costs add up quickly. The cost of building a house varies significantly on your real estate, building materials and design choices. The Australian average cost to build is approximately $1270.80 per square metre. And this is just the starting point and can even reach $5000 per square metre, depending on the type of dwelling and building and architectural process. Considering the average Australian earns $1225 per week, you can see why this isn’t an investment that most people leap into.
By paying attention to details both big and small, it is possible to start building on a budget and still get your dream home.
Here are six practical tips to take the stress out of building on a budget.
1. KNOW WHAT YOU ARE GETTING INTO AND BE REALISTIC ABOUT THE OUTCOME
Most people get so distracted by the excitement of building a new home that they fail to do their homework. Knowing exactly what you want from your dream home and how it fits your lifestyle will help you save a lot of money, both upfront and over the lifetime of the property. Building on a tight budget means that you may have to sacrifice on some luxuries, or defer until a later date.
Building costs are often influenced by three important factors:
- property size
- quality of inclusions
Having a clear idea of what your budget can accomplish (even when stretched) will ensure that you don’t end up over budget or invite scope creep.
Tip: it’s wise to budget more than you expect, just to be on the safe side.
WORK WITH A SPECIALIST
Building on a budget without a professional who has in-depth knowledge about the market by your side could be a complete waste of time. Opt for working with a reputable builder who specialises in the type of house you want to build.
A specialist builder can give you an upfront detailed quote and cost plan for building a house, which can include staple costs and ancillary fees, such as selections, fixtures and fittings. A credible company, like Mincove Homes, will provide a list and costing breakdown for all possible inclusions which offers flexibility both in terms of taste and budget.
BUY LAND YOU CAN BUILD ON
Often, this simple task is overlooked, especially when a block of land has an attractive price tag. Site preparation costs for a sloping or rocky block of land can contribute significantly to your overall project costs. If possible, choose a block of land that’s flat, free of trees, easy to access and connected to necessary utilities.
If you’re unsure of the type of preparation a block will need it’s wise to undertake a site analysis. Here’s what you need to know before you start building.
CHECK IF YOU ARE ELIGIBLE FOR GRANTS
If you’re a first home builder you may be eligible for several stamp duty concessions in New South Wales. A government initiative, the First Home Owner Grant (FHOG) was launched nationally to help eligible first home buyers get their first home and can result in generous savings. Are you eligible for the first home owners grant?
CHOOSE A SIMPLER DESIGN
Keep the design as simple as possible. Opt for more conservatively designed homes that make great use of space with effective layouts.
There are some first rate three bedroom home designs available that still offer generous space and light and make the most of a narrow block and the area available. This kind of design offers much more livability whilst building on a budget, whereas more extravagantly designed custom builds might be a talking point but can end up being a costly poor use of space.
Buying a project home can really cut down on upfront costs.
DON’T CUT CORNERS
When building on a budget, you may be tempted to cut corners by using substandard materials or hiring a shady contractor who charges less. This is inadvisable in any situation, more so when it comes to building a house. Always choose professionals with credibility, which isn’t necessarily the same thing as the most expensive.
It can be tempting to skip out on quality materials, such as the cheapest insulation sheathing. But the long term effects will be detrimental, not only on your heating and cooling bills but should it come time to sell your property.
Plan for success by working with a reputable company. Talk with us directly about building on a budget.
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