Factors to consider when building a custom home

The costs associated with a property development project can be immense, much more than an aspiring homeowner is willing or capable of investing. That said, there is always a way to become a homeowner, and to build your new home on your own terms, like a sustainable home, if you take the time to create a comprehensive plan, and optimize your finances down to the last expense.

Assuming that you have already applied for a loan and that you have a decent amount of capital available, you can start optimizing costs, cutting extraneous fees, and you can work on improving the construction, design, and decorating processes altogether. 

Of course, there is no denying that you might need to make some sacrifices along the way, but in doing this you will realize that you don’t need some of the features that you wanted, and that there are much more affordable solutions and better optional upgrades on the market. Let’s put all of this into perspective, and help you save big when building a new house.

Consider the size of your new home

The first and arguably the most important consideration you need to take into account is the size of your livable space. Not the size of the entire property, but the actual space where you’re going to spend the majority of your time. Now, many aspiring homeowners make the simple mistake of wanting a bigger home than they actually need, which ends up inflating the costs of construction and design by a substantial amount. Think of it this way: if you want a 1,250 square feet home, and you’re paying $100 per square foot (to keep things simple), you could save as much as $25,000 just by downsizing to 1,000 square feet.

Yes, the space will be smaller by 250 square feet, but imagine what you can do with that extra 25k. You could, for example, make the interior super functional, which will enhance the look and feel of your entire living environment without making it feel confined. This leads us to our next point.

Bring form and function together

Everyone wants to build a beautiful home, but that doesn’t mean that you should break the proverbial bank in the process. There are many nuances that go into saving money on new home design, and this is something that you need to spend a lot of time on during the conception phase. Be sure to work closely with your architect, contractor, and interior designer during this phase in order to save as much money as possible.

Your focus should be to find the design scheme that fits your personal taste, but one that also doesn’t require a lot of work. A great example is the industrial look, as it allows you to save on painting and decorating with its exposed look and its raw materials. You can stick with an exposed-brick wall, or salvage some of the materials (more on that in a bit) in order to save money and complete the project faster. 

Consider getting a house and land package

One of the best ways to save money on your new home, and probably the best way, is to get a house and land package. There are many benefits to this option, ranging from investment savings to a more streamlined approval process and a much more efficient construction process in general, all of which have prompted aspiring homeowners in costly regions to consider it. Take Australia as a prime example.

Here, future homeowners are increasingly opting for house and land packages from Austral and other reputable vendors in order to simplify the process of land procurement, as well as to get an experienced builder through the vendor, and to streamline the entire construction process. You can make substantial financial savings this way, and if your state offers grants for first-time homeowners, the potential savings are even greater. 

Find the right contractor

To conduct a successful construction project, you need to work with the right contractor – one that has a proven track record, but won’t cost you an arm and a leg. Now, this doesn’t mean that you should choose a cheap contractor, rather it means that you should look to save money indirectly by choosing the right contractor for the job.

In other words, it’s a wise decision to spend a little extra on a more expensive builder that can guarantee that the project will be concluded on time, even if you choose to add an addition to the property, and that the property will be up-to-code across the board. The best contractors will also have the best suppliers, so you will be able to save on materials and all other features and resources you might need. 

Salvage and source some of the materials

Finally, consider sourcing some of the materials yourself. Typically, the contractor will be able to get you a better deal on raw materials like pipes, siding, floors, and other, but when it comes to individual amenities like the bathtub or the heater, you might be able to find a more affordable option. Do your research, and compare your findings with the offer made by your builder and your designer. 

Building a new home is a cumbersome project, and it can be a downright frightening thought when you factor in the financial investment needed to build the house of your dreams. But don’t let that scare you, instead, follow these tips and you will be able to make substantial savings on your first home-building project.