Log in / Sign up

Get in touch with one of our experts who can answer all your home loan related questions.

We love feedback!

Back to Inspire Home

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.

How much equity can you access?

$

Don't know your property value?
Get a free property report

$

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.

Dreaming of purchasing a new home?

Find out how much you could borrow with our calculator.

Calculate now

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.

house-vision

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.

Wondering how much you could borrow?

Calculate your borrowing power based on your income.

Calculate now

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.

three-builders-arms-crossed

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.

Calculate your loan repayments

$
%
years

Got a home loan question? Just ask!

We're here to help. Get free expert advice at a time that suits you. Choose a time to chat with a Home Loan Specialist here.

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

Afraid you're not getting the best home loan?

Search over 30 major Australian lenders in seconds.

Find a better deal

Dreaming of purchasing a new home?

Find out how much you could borrow with our calculator.

Calculate now
How much is your home worth?

How much is your home worth?

Get a free online property valuation with local sale and suburb statistics.

Get your property report

Important legal stuff

COMPARISON RATE 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.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
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.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 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 40% 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. We have an independent and founder led board.
Made with love at Circular Quay in Sydney, Australia. © 2019. All rights reserved.