Getting your first foot on the property ladder in Sydney is the ultimate dream: investing in a place to call your own in the most exciting city in Australia. But dreams often come at a cost.

Is there a way of building your perfect home without breaking the bank? With the property market thriving, existing homes are only going up in price. You can make your individual mark by opting to build your place to your own specifications, but even that comes with land and construction costs.

Fortunately, there are ways to make your dream a reality. We’ll be looking at how to get costs down with design and materials. We’ll also consider how best to finance building your first home. Spoiler: there are also potential government incentives to help you.

Let’s get into how to start planning for your first home build.

1. Plan and Prepare

Before you spend any money or make any phone calls, you need to have a plan of action.

●      Planning: As the saying goes, fail to prepare: prepare to fail. Thorough planning time is needed to get everything in order before you begin.

●      Location, Location, Location: This is the key element to making sure your property fits with your lifestyle. Knowing which neighbourhood you want to move into will ensure your first home can be your forever home.

●      Budget: You need to ensure you set a realistic budget for yourself. This means knowing what you need to splash on and where savings can potentially be made. If you are under budget before you obtain your financing, you could wind up taking out extra loans with a hefty charge.

2. Choose a Smart Home Design

Before you start your building journey, you want to consider all the options in terms of affordable house designs.

Exploring Affordable Home Designs

Start by exploring the different home designs available to you. Options include:

●      Single storey homes: A single storey house is significantly cheaper to build than a double storey one.

●      Narrow block homes: If you opt to buy a narrow lot, it’s likely the land purchase will be of better value. Innovative narrow block home designs mean you can often have a fair amount of living space. If your heart is set on a three bedroom home, it may be possible!

●      Prefab homes: One of the cheapest ways to build is by going for a modular or a prefabricated home (or prefab for short).

With these homes, most of the design and construction has already taken place offsite, and all you need is to hire a contractor with prefab building experience.

Customise Your Design to fit the Budget

Next, customise the design to fit your budget.

●      Simple layouts: Keep your layout intricacy to a minimum to reduce the amount of time spent both designing and building.

●      Essentials: There are some features you need to prioritise. Bathroom, kitchen space and the number of bedrooms tend to be non-negotiables.

Utilise Display Homes for Inspiration

Provincial Homes is located in two Sydney display homes villages ,you can visit to use for inspiration. Our display home locations are Box Hill and Leppington.

Display homes can help you clarify what you really want from your new build and get a feel for a modern house design.

3. Utilise Government Grants and Incentives

With a shortage of existing housing, the NSW government has a number of incentives in place to aid those looking to build for less.

Government Grants and Incentives

Here are two grants and schemes that can help with your budget house build.

●      First Home Owner Grant (FHOG): This scheme will give you $10,000 towards a house purchase or build, provided that:
a) You are a first-time buyer.
b) The home has never been lived in before.
c) Your entire budget comes in under $750,000.
d) You move in within 12 months and stay there for a subsequent 12 months.

●      First Home Buyers Assistance Scheme: this can give you a full or partial exemption on stamp duty (otherwise called transfer duty) so long as it’s your first house and your property is worth less than $1 million.

For more information on both of these schemes and to discover more about your eligibility, visit the New South Wales government website. 

4. Use Cost-Effective Building Materials and Techniques

Keep costs down where you can – this means selecting the best materials and building techniques.

Materials

When deciding what materials you want to use, you need to consider which are going to be the most cost-effective in the long term. Consider their price, and look at their durability. Materials like recycled steel, concrete and bamboo are all good bets.

Modern construction techniques

There are also several modern construction methods that you may be able to leverage to keep on budget, including:

●      Prefabricated homes: We’ve already touched on prefabrication, but it really can be the most cost-effective route into house building. You can even opt for certain panels to be prefabricated if you don’t want your whole house to be this way.

●      Modular homes: modular homes are even easier to put together onsite than prefab! As the name suggests, the individual modules are constructed off-site and then pieced together on-site. They can be a little pricier but can also result in a more custom home. Do you have specific interior styles you want to create? A modular house might be for you.

●      Kit homes: These exist somewhere between prefabricated and modular homes. All of the pieces are designed in units and provided, but they need to be put together on-site.

5. Make Efficient Use of Land

Land in Sydney doesn’t come cheap. Here’s how to make the most of what you can afford, ensuring you have plenty of land to build your dream home, no matter your budget!

Select an Easy Block of Land

Access to the site is paramount for your builder, among other factors. Ensure your site is eligible and ready for a build to avoid incurring extra fees.

You should also consider land suitability. There are many factors that will make a land unsuitable for construction, such as proximity to bush and flooding potential. If the land isn’t level, you might want to consider a split level home design, though this, of course, increases build complexity.

Strategies for Maximising Apace on a Narrow Lot

If you’re working with limited space, you could opt for a tiny house design – check out our post on the tiny home trend.

Another trend is the container house – this is like a modular home that has been made from a shipping container, so it’s naturally limited in space but customised to you.
 
These are perfect if you’re looking for innovative house designs under $300k.

Use what space you have with vertical space utilisation. If square metres of floor space isn’t abundant, make the most of the wall space with an innovative shelving solution.

6. Work with Builders and Contractors

You need to make sure you’re always on the same page as your team; here are some ideas for how to guarantee this.

Find a Reputable and Affordable Builder

Check with all builders you speak to that they have all the necessary qualifications and insurance. As a minimum, they’ll need:

1. A New South Wales builder’s license.
2. Home Building Compensation Fund (HBCF) cover.
3. Public liability insurance.

It’s important to get multiple quotes so you can compare different offerings and get the best value possible. You can also use review websites such as TrustPilot or NSW Fair Trading to see how others have found builders on previous, similar projects.

If you decide to work with Provincial Homes, our award-winning team will guide you through this process, and you can make the most of our 30 year structural guarantee.

Contract Negotiations

Here are some things to consider when you enter the negotiation stage.

●      Inclusions/exclusions: Really comb through that fine print and check what is and is not included in your contracts. Think of things like fixtures, permits, utility connections, and clean-up. Discern what you expect from your builder and open up a dialogue. This can help you avoid the unexpected.

●      Avoid unnecessary upgrades: Do you really need a pool or two master suites? If the answer is no, don’t accept it as a part of the plan. Additional costs build up quickly, and it’s your home at the end of the day.

One way to avoid this is to obtain an all-in quote so you have the upfront cost set in your contract before the build begins.

7. DIY and Self-Management Options

You may be wondering whether you can cut some costs by handling some elements by yourself. Some projects are DIY worthy, and it’s up to you whether you want to project manage the build.

●      Painting – this is a fun one to do yourself. You don’t need to hire a decorator for a nice finish. You just need some tape, dust sheets, rollers, brushes, and of course the paint. And perhaps some clothes you’re not overly attached to!

●      Landscaping – are you or your partner amateur gardeners? If so, you can make your new plot of land your pride and joy by landscaping yourself.

That said, before you commit to a DIY project, consider the pros and cons.

●      Pros: the main pro is how much money you will save on hiring a project manager. If you don’t enjoy delegating or have experience with major tasks like this, it might come quite naturally to you.

●      Cons: these are how much time and effort it will take you. Project managing is quite the energy drain and will take up a lot of your time. If you have a full-time job, you don’t want another one on top of that!

8. Long-Term Savings and Maintenance

Your home ownership journey doesn’t end when the house is finished. Here are a couple more elements you will need to consider.

Maintenance

Houses don’t stay pristine for long; that’s why there’s a deprecation tax consideration! Bear in mind what will need investment to stay maintained, such as the boiler and heating system, or even simple cleaning jobs like the gutters and the driveway.

Invest in Energy-efficient Fixtures

Aside from being environmentally friendly, the more energy-efficient an appliance or fixture is, the less money you will spend on running it. From solar panels to washing machines, it’s worth investigating the best products to install in your house.

Summing up

If you want to build your dream home on a budget, there are several steps you can take to ensure you are a happy customer at the end of the build process.

To find out more about how Provincial Homes can work with you as you embark on the new build process, read our customer testimonials and browse our home designs, or contact a member of our sales enquiries team for more information.

Frequently Asked Questions

What are the best budget homes to build in Australia?

The best budget house in Australia is one that utilises a potentially narrow block by keeping the layout simple while maximising vertical storage space.

What additional costs should I consider when building a budget home?

Aside from the costs of building materials and labour, you need to budget for the additional costs to ensure your construction site follows all regulations. Disposing of waste correctly is a very important element.

You will also need to either apply for a Complying Development Certificate (CDC), or if that doesn’t work, make a Development Application (DA) to the council for the correct approvals to build your property.

How long does the build process typically take for a budget home?

The build time for a budget home can typically take anywhere from 6-12 months. If you go for a prefab, a modular or a kit home, though, it could shave valuable months off.

It also depends on the state of the land. If you’re opting for a knockdown rebuild, you need to take demolition time into account, too.

What is a kit home, and why is it cost-effective?

A kit home is a type of prefabricated home that is designed by specialist home manufacturers. It’s made off-site, likely in a warehouse, then merely slotted together when it arrives on your block of land.

It’s cost-effective as it is mass-produced in a warehouse, and labour costs on-site are significantly reduced.