10 Ways to Keep your Building Budget on track post COVID

If you're  planning on renovating or building a new home you may be concerned about the increased costs of building materials and labour that we've seen over the past few years, as well as the impact of rising interest rates, so it pays dividends to build the smart way and reduce your costs wherever your can.

Here in Australia the cost of building escalated substantially during COVID. The rise in costs of materials such as steel, timber and labour were due to a number of factors. Timber was in short supply due to not only the renovation boom, but also the devastating bushfires of the previous years. The supply could not keep up with the demand, and at the same time the cost of labour increased in line with the residential construction boom. Trades were in high demand and good trades were booked out months in advance. Like anything that is in high demand, a price increase usually follows. Many industries suffered during COVID. Residential building in Australia has definitely picked up coming out of the pandemic, however the cost to renovate or build new has increased. Due to the uncertainty with the price of materials since, we have noticed an increase in preference for the security of a 'Cost Plus' contract with builders as it's difficult for them to obtain a fixed price on some materials & even labour at the time of quoting.  

The following are 10 money-saving tips for your renovation or new build that will go a long way in helping you to save money and to assist you with staying within your budget while still achieving your desired result.

1. Do your research

One of the best ways to save money on a building project is by researching materials and labour costs. Doing so will help you better understand construction industry costs and what kind of expenses you need to plan for. To get yourself started, as mentioned, it's important to research material prices, labour rates, along with other related costs like your council and professional fees but not limited to your Architect, Building Designer, Engineer, and Landscape designer (if you're going down the DA or CDC path in Australia) so you can create the beginnings of your building budget.

2. Set a realistic budget:

Now that you have researched building materials, labour costs and professional fees, you can start to formalise a realistic budget. Before you start building your new home, it's important to have a clear idea of how much money you can afford to spend. This will help you make informed decisions throughout the building process and go a long way to avoiding the dreaded budget blowout.

3. Utilise Online Tools for Home Designing & Budgeting

The internet is a great resource when it comes to designing and budgeting for a build project. There are numerous online tools that can help you create a detailed plan for the project, including cost estimates, material lists, design options, and more. Additionally, many of these tools also provide tutorials or advice on how to save money during the process. Always make sure that the tool you wish to choose is relevant to your Country & State as well as being up to date with its information.

4. Keep it Simple

A simple design can help you save money on construction costs. Avoid unnecessary features and stick to  classic and functional designs that will stand the test of time, avoiding what is trending can avoid a 'do over' in a few years time, after all you want longevity from your building dollar. 

5. Be Flexible with Design Changes

Design changes can be expensive, especially when they involve structural or materials changes. Being flexible with design changes is essential for staying on budget when building, as unplanned last-minute adjustments can add to the cost of a project. It's important to stay open-minded and be willing to make compromises or consider alternate options if unexpected issues arise during the process.

6. Reuse Existing Materials When Possible

Reusing existing materials, particularly if you are renovating, is a great way to save money. Not only does this approach help to reduce the overall cost of the project, but it can also help to preserve the integrity of your home and its unique style.

Before you start any renovation, it's important to look around to get an idea of what you're working with. This includes assessing the condition of the existing materials and structural components. For example, ask your builder if the timber frame within the wall that is being demolished can be re-used if feasible. Also take note of any potential design elements that could be incorporated into your project for a more cohesive look. Doing so can go a long way to saving some money while still achieving the desired results.

7. Shop Around for the Best Deals on Supplies & Services

In addition to researching materials and labour costs, you could also shop around for the best deals on supplies and services. Doing so can help you find quality products at more affordable prices, as well as give you an idea of what kind of services are available in your area. 

8. Negotiate Prices with Trades

Negotiating prices with trades can be a great way to save money. You may be able to get discounts if you agree to sign a long-term contract, pay upfront, or bundle services together. Before signing any contracts, make sure that the trade provides an estimate that outlines all of the costs involved in the project

9. Take Advantage of Rebates Available in Your Area

Rebates can be a great way to save money on renovations or new builds. Many states offer rebates for energy-efficient home improvements, including insulation, windows, HVAC systems, solar power and more. Additionally, some banks are now offering a better interest rate if you choose to go down the energy efficient home build known as 'Passive House' construction'.

By taking advantage of these programs, you can significantly reduce the cost of your project. It's important to research the rebates available in your area before starting any projects

10. Strategise Financing Options Carefully to Avoid Unnecessary Expenses

When renovating or building a home, it's important to strategise your financing options carefully and early in the process. This can help you avoid unnecessary expenses in the long run. Consider all your available options, including personal loans, mortgages, refinancing and more. Not only will this help you find the best rates on interest and fees, but it can also save you money over the lifetime of your loan. By understanding all your financing options and taking advantage of any possible incentives, you can keep your renovation project on budget.

In conclusion, renovations and new builds are a costly endeavour if you don't plan well in advance. However, there are many money-saving ideas that can help keep your project on budget. By researching materials and labour costs, planning a realistic timeline, being flexible with design changes, shopping around for the best deals and negotiating prices with trades, along with utilising online tools for home design and budgeting, taking advantage of any rebates available in your area and strategising financing options carefully you can make sure you stay within your budget. With careful planning and consideration of all these aspects, you can save money while still achieving your dream home.