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Building on a budget: 5 things you must know

Are you looking at the possibility of building a home? Homeowners often dream about what they want in their ideal home which can sometimes lead to going over their allocated budget.

After reading this article, you could be on your way to building your dream home.

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1. Plan, plan and plan

Doing anything without a plan often ends up in failure and building your home is no different. Planning your home includes the blueprint of the house, knowing where certain rooms will be located, being mindful of the budget and your spending and the colour patterns and designs you would like in your home.

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2. Know your budget - set realistic standards

When dreaming about your home, it’s common for people to forget their actual budget amount. One crucial thing to do to build your home successfully is specify how much you are willing to spend on the project. Once that's sorted, you can indicate and disperse how much you want to splash out in each department, i.e. bathrooms, bedrooms, living rooms etc.

3. Buy a block that is ready to build on

Finding the right block to build on can help you shave thousands off your building project. Making the most out of natural greenery and shape of you land can help in designing your home for cheaper.


However, some blocks of land that are slanted may require excavation to level it which would incur additional costs. Research and look out for these certain blocks to avoid these extra fees.

4. Compromise on fittings and materials

When budgeting, you can allocate how much you are willing to spend in certain aspects of the project. By chance you find fittings or materials for a cheaper price than what you estimate you can either:

  1. Allocate the difference in budget for other areas of the project or
  2. Stick to the budget and make the overall project cheaper.

If you do decide to allocate the difference in funds to other aspects of the project make sure you prioritise accordingly. Know where you want to save a little bit extra and where a little bit more money might go a long way. If you can’t think of upgrading a particular part of the house then it is worthwhile saving the money to decrease the overall cost of the project.

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5. Picking the right builder

Regardless if you are building on a tight budget, finding the right builder is crucial in the home building process. As you will be working with them for multiple months, you’ll want to find a builder that has the credentials, the experience, the personality but also keeping in mind, the price.


In some situations it’s worth your while seeking a specialist. If you want to renovate a room, a renovation specialist is for you, if you want to extend a room, a extension specialist is who you need.

These specialists can offer you highly detailed and accurate quotes which can cover some hidden costs you were not expecting like site improvements, landscaping and flooring.

By following these 5 tips, you can help make sure that your home building journey is a successful one. If you are interested in finding out more about how to build on a budget, book an appointment with one of Lendi’s Home Loan Specialists.

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The information in this post is general in nature and should not be considered personal or financial advice. You should always seek professional advice or assistance before making any financial decisions.

Tags: building new home or structure, building inspection, renovating outdoor spaces, renovating indoor spaces, renovation, renovate

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Important legal stuff

Lendi is the trading name of Lendi Pty Ltd (ACN 611 161 856), a related body corporate of Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence 442372). We will never sell your email address to any third party or send you nasty spam, promise.
# Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
Lendi is a privately owned and operated Australian business. Our mission is to change the way Australians get home loans by providing a faster, smarter and more secure home loan experience designed around the customer’s convenience and needs. Although Lendi compares over 1600 products (2,500+ products including feature and pricing variations) from more than 35 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 35% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors.
*WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years. Fees and charges apply. All applications are subject to assessment and lender approval. Quoted rate applies only to PAYG loans with LVR of 80% or less with security in non-remote areas. All applications are subject to assessment and lender approval.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
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