Budgeting for your build
Dec 23, 2019
Learn to save with these helpful tips
Deciding you want to build a home is easy, saving up a deposit is trickier. There’s lots to consider and preparation is key. That’s why we’ve put together some helpful tips for you to follow and grow your savings quickly.
Know your borrowing capacity
It’s important to get an idea of how much you can borrow. Once you know this, you’ll have a better understanding of properties in your price range. Speak with your Financial Institution or see if they have a free borrowing calculator online you can use.
Establish a goal deposit amount
Once you’ve figured out a rough borrowing capacity, you’ll be able to gauge an appropriate price range for homes and a location that suit your lifestyle. This will then help you identify how much of a deposit you’ll need to save to contribute towards the homes you’re looking at. For example, if the land and home design you have found have a combined price of $320,000, and you can only borrow $300,000, you will need to save $20-30,000 for your deposit. It’s always better to aim to save more than you think you’ll need – to cover unforeseen costs like legal fees.
Establish a savings timeline
Now that you’ve determined a goal deposit amount, you’ll need to save it. Developing a budget will help establish a savings timeline. For example, if you need to save $30,000 and you are planning to save $500 a week. You’ll have your deposit saved in 60 weeks.
Save, save, save!!!
It’s always a good idea to track your savings and keep checking back in with your set budget. You may find there’s room to save a little more and reduce your savings timeline. A handy budgeting resource that can help you track your expenses is the Queensland Governments budget planner. Remember, the more you save, the bigger the deposit and the less you’ll have to borrow. It’s also important to note a generous deposit means you’re less likely to pay Lender’s Mortgage Insurance – which can save you thousands.
Do your research
While you’re chipping away at your savings, use this time to research floor plans, colour schemes and smart ways to manage your budget throughout the build. For example, are there any DIY items you can take on after the home is complete, so you can save money on those items and put the savings back into things like luxury inclusions. It’s also a good idea to use this time to browse our Display Homes or check out our homes online. Getting things organised while you save will mean you can get the ball rolling as soon as your deposit is ready. Talk to one of our New Home Consultants and get a free quote today!
The hard work has paid off
It’s time to apply for a loan, get your quote progressed to a contract and start the building process.