Savings blueprint: 7 budgeting tips for first-time home builders

The buzz of excitement about building a brand-new home can quickly diminish when it comes to the financial realities.

From land to construction, fittings to insurance, building a new home for the first time takes planning and patience.

“Building your first home is a truly exciting milestone – it’s the chance to create a space that reflects your personality, lifestyle, and future goals,” says Emily Reiss, general manager, Land Acquisition at Simonds.

“But it can come with challenges, especially when it comes to navigating the financial side, understanding timelines, and making informed decisions.”

Here are her practical budgeting tips for buyers embarking on the journey of home building for the first time.

1. Understand the costs

It can come as a shock to first-time builders, but there are many costs beyond construction that need careful attention.

Ms Reiss says you need to consider the land cost, stamp duty, site preparation, council permits, any upgrades to the design that you choose, and utility connections.

“We always recommend setting aside a contingency buffer for unexpected costs like rock removal or weather delays,” she says.

2. Set a realistic budget

In the lead up to building your home, you’ll need to be realistic about your finances.

Budget planning should ideally start at least six to 12 months before you want to break ground.

“This gives you time to research builders, secure finance, find the right block of land, and explore home designs that match your lifestyle and budget,” Ms Reiss says.

3. Maximise value

When making decisions about your new home, opting for a quality build is a smart move, as it helps to maximise value for the long term.

“Choosing durable, high-quality materials and working with a builder who has high construction standards means fewer repairs and maintenance costs over time,” Ms Reiss says.

“At Simonds, we only work with trusted trades and suppliers, and every home is backed by our Lifetime Structural Guarantee* because we know that peace of mind is priceless.”

Selecting popular features such as a modern design, a functional layout, double glazing and durable cladding can enhance resale value, she adds.

“Open-plan living, indoor-outdoor flow, and smart zoning are timeless features that appeal to a wide range of buyers,” she says.

4. Prioritise needs versus wants

Of course, it is tempting to have all the bells and whistles built into your home, whether that be top-end kitchen appliances, pendant lighting, or designer freestanding bathtubs.

However, Ms Reiss says to stay on budget, you need to prioritise needs versus wants.

“It starts with clearly defining what’s essential for you to live comfortably now – things like bedroom count, storage, kitchen layout, and energy efficiency,” she says.

“From there, look at ‘nice-to-haves’ that you could potentially add later, like stone benchtops, designer tapware or built-in speakers.”

5. Factor in sustainability

Another step to maximise the value of your new build and save money over the long term is to factor in sustainability.

“Features like insulation, double or triple glazing, solar orientation, and efficient appliances can significantly reduce your running costs, while also making the home more comfortable year-round,” Ms Reiss says.

She says that Simonds builds all their homes to meet the new 7-star energy efficiency standards under the National Construction Code.

6. Talk to the experts

Financial planning as a first-time home builder can seem overwhelming, but it doesn’t need to be.

Ms Reiss says Simonds can help with expert insights regarding the costs, budgeting, customisation, sustainability and more to help you succeed.

“Our New Home Specialists work closely with each customer to understand their financial situation, lifestyle and goals,” she explains.

“They collaborate with our finance partner Loan Gallery to ensure you get a full picture of your borrowing capacity and a clear pathway forward, right down to what’s included in your base price, and what you might want to upgrade later.”

7. Stay on track

With your new home in sight, sticking to your budget will be much easier than you think, says Ms Reiss.

“It always helps to come back to your ‘why’ – ‘why’ you’re building in the first place. Is it to get out of renting? To start a family? To create stability?” she says.

“Sharing this with your New Home Specialist can help keep them aligned to what the best outcome looks like for your situation, allowing them to help motivate you to stay on track.”

Disclaimers: 

*Terms and conditions apply, visit www.simonds.com.au for full details.

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