When you start building it is likely that your lender will set you a budget or a cap to how much they are willing to lend you. Whether you choose to use this, or set a smaller budget, to reduce your re-payments or pay back the loan as fast as possible, almost everyone building will have a budget.
The key to saving money and stretching your budget as far as possible is defining what are your top priorities, and what are you willing to save on. Once you have your priorities in check, you will be able to implement these 6 tips to saving money during the new home building process.
Reduce Site Costs
This ultimately comes down to choosing a smart block of land from the very start. Site costs can really add up, so choosing one that is easy to build on, can mean that your site costs are minimal. Some things to look out for when buying land is slopes, existing trees that would have to be cleared, odd shaped blocks or rock removal. This can be the difference between $10,000 in site costs or $70,000 in site costs, so pay close attention to the land.
Compare Lenders
When you get a home loan to build your new home, you will have to live with it for many years (generally 15-30 years) so make sure you have found the right one. Yes, you can break loan agreements and switch, but this is normally time consuming and comes at some cost so you want to avoid this. Shopping around can be frustrating, but will be well worth it in the long run. Alternatively, you can speak to a mortgage broker who can do some of the leg work for you.
Find a Builder Who Understands Your Priorities
Make sure that you find a builder that is able to deliver on your priorities. If you are after a budget home, make sure you speak to builders who can help you reduce costs. Speak honestly to your builder and make them aware of what is important to you. Builders have been through this process hundreds or even thousands of times before you, so they should be able to provide guidance on areas you can make some savings outside of your key priorities.
Build a House That is Right for Your Family
Building a new home doesn’t mean that you have to go to the highest limit of your budget and get the biggest and most luxurious house you can get. For many, the way to stretch their budget is finding a well designed home that fulfils their needs. Also a smart designed home that makes the most of space is usually much cheaper to maintain
Choose Open Planned Living Spaces
The thing about open plan living spaces is that they are versatile and are more economic. Instead of needing a kitchen, living room, dining room, study and rumpus room in separate rooms, all of these are created into one smart space. Open plan home designs will normally be more cost effective as they involve less internal walls and electricals.
Don’t Make Changes
It might feel like a good idea to make changes to your house design once production has commenced, but it is very important that you weigh up the pros and the cons. It might feel like a good idea, but it will cost you. Make sure you do your research and are confident in your decision on the house design before you start building. If you do feel like you have to make changes, never move wet areas, such as your kitchen, laundry and bathroom, as these are the most expensive areas to move.
Being smart with your money upfront can really be worth the time and effort down the track, and make life a lot easier when managing the monthly loan re-payments. If you would like to discuss builders who can work with your budget, make sure you chat to an iBuildNew expert consultant on 1800 184 284 or book a call online.
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Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
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