How to Build a Luxury Home on a Budget
Everyone wants more for less, whether you consider yourself frugal or someone with expensive taste it is not uncommon to want a luxury home with limited funds. So how can you get more bang for your buck? Building a home as opposed to buying one is the first step in getting items on your wish list. You get the floorplan you’ve always wanted and you get to define your idea of what luxury is to you.
Below, we share some ways you can save mighty sums and still get to own a luxurious home.
Define Your Budget
When planning to build a house, having a clear idea about what you can afford is essential. An excellent way to determine what home price you’re qualified for would be to ask your bank’s loan officer. Get a ballpark figure of the cost of a luxurious home you can build comfortably. Don’t go over that range. Calculate each detail, it’s easy to get carried away.
Have financial breathing room
Set a limit; you will not go over for the new home and remain under your budget for the said amount. Construction costs should be kept at 10-12% less than your total budget. When you work below the budget, you have plenty of wiggle room to include luxurious features in the home you build.
Create a wish list
You can afford a luxury home within your budget, but prioritizing the luxury you want is necessary. One must consider several aspects when designing their dream home—have a wish list, then prioritize what is most important.
Space may be the most critical factor for a growing family. You can swap luxury hardwood flooring for tiles if that means being able to afford a larger home.
For seniors building a retirement home, higher quality finishes, a sizable porch, and more energy-efficient equipment may trump floor size.
Choose the right site to build on
Pick a site that fits your budget and a plan that can be customized to that site. Avoid site preparation charges like hauling dirt, clearing trees, blasting rock, which all add to the building cost.
Waterfront property can be one of the most desirable places to live. Although there may be many excellent deals available, waterfront real estate is generally more expensive because of high demand.
Weigh your options—you may find that a canal or bay lot is just as splendid but less costly than a lakefront or oceanfront site.
Sometimes the most luxurious properties are only sold as large lots. Pool resources with a friend or sibling so you can acquire the high-end real estate—and later split it into smaller lots.
Use licensed contractors
An experienced contractor plays an integral role in home-building. Licensed contractors have established networks with suppliers and subcontractors — relationships that they can leverage for quality supplies at great discounts.
Tell your contractor what you need. They have most likely assisted people in the same position and can advise you in certain decisions. A good builder can provide you with ideas and tips on how to maximize materials to get what you want within your budget.
Monitor costs and quality
You should continuously monitor progress and spending during construction to ensure that you get everything done based on your requirements.
Don’t accept less than what’s laid out in the design and the contract. This applies to decorative details and structural elements. For instance, if your builder agreed on a given insulation brand, don’t accept a lesser brand, at least not without a cost adjustment.
If you follow this guide, you’ll find that a small budget is not an obstacle to build a luxury home. What you need is the right vision, budget, and an expert team of builders.