Building a home is an expensive and long-term investment for many Australians. It is therefore important for first home builders to be aware of all the potential expenses involved in order to achieve the most successful outcome and make sure their project is on track.
What is the biggest expense in building a house?
When it comes to building a house, the biggest expense is typically the cost of materials and labour. According to the Australian Bureau of Statistics, the average cost of new home construction in 2019 was $301,900. This number does not account for the cost of land, which can significantly increase the overall cost of a build.
The cost of labour is driven by the amount of work required and the complexity of the project. Different materials may also have a wide range of prices depending on their quality and availability. Keeping an eye on materials costs and making sure to only purchase what’s necessary can help to keep the project within budget.
How do you manage building costs?
To ensure that all expenses are accounted for, creating a project budget is critical. This should include a detailed breakdown of all expected costs, including materials, labour, and any other fees such as permits or inspections. A budget should also factor in any unexpected changes to the costs of materials or labour, as well as any potential contingencies that may arise during the project.
Having a budget in place can also help identify areas where costs can be reduced. To get the most from your budget, research different materials and contractors and compare prices before selecting any. If you are able to source materials yourself, rather than through a contractor, this can help reduce costs significantly. It is also important to have good communication with your builder to ensure that any changes or additional costs are known and factored into the budget.
How can you reduce the cost of a residential building?
One way to save money is to choose low-cost materials when appropriate. It is possible to achieve a great look and feel without spending a fortune on high-end materials.
Another way to save money is to plan the project carefully and adjust the design if necessary in order to stay within your budget. Paying attention to the smallest details can help to keep costs down, such as selecting a more affordable alternative for fixtures or fittings.
If working with a builder, try negotiating for a better deal. Many contractors are willing to offer discounts or provide extra value for projects and can be more flexible when it comes to negotiating. It is also important to shop around for builders, as different ones may offer different rates.
Can I manage my own build?
For some, the idea of managing their own build can be daunting. It is important to note that taking on such a task can be complex and time-consuming, requiring a lot of knowledge and experience. For those seeking assistance, Better Way 2 Build can help connect homeowners with the right builder for your specific needs.
