Building A New Home Within Your Budget

Determining your budget in advance and forming a clear picture of what your dream home must meet is a first crucial step. This way you know exactly what type of home you can look for. You can then deduct the additional costs (see below) from this amount in order to determine the correct cost price of your new-build home.

Your maximum construction budget is usually determined by your own contribution and a mortgage loan. The maximum size of the mortgage loan depends on the repayment term, your income, any debts and the interest rate. This interest rate is in turn mainly determined by the ratio (the ratio between the own contribution and the amount to be borrowed), the term and your negotiation techniques when negotiating the best loan from different banks.

1. Research house prices per municipality

In the city, close to friends and family or close to your work: these are the most frequently mentioned priorities for the location of a home. But these locations can be significantly more expensive than, say, the region just outside the city center or a neighboring municipality right next to your ideal location. This way you can quickly profit from several thousand or even tens of thousands of euros for the same home.

2. Build simple and higher

Opt for a simple construction with as few corners and edges as possible. This way you can reduce the number of working hours of the contractors and the use of materials.

Building your home in height instead of width means that you need less foundation and fewer materials for your roof. This only applies if you make a comparison between high-rise and low-rise buildings on an equally large living area.

3. Build compact

We do not refer to the size of the house, but to more efficient construction. The aim is to achieve an ideal ratio between the largest possible surface area where people live (and which should be heated) and the smallest possible 'loss surface' such as outer walls, ground, roofs, etc. very important. Just think of orienting the living room to the south and the storage room to the north. Even building an ADU in the backyard could bea great idea to increase home value.

Examples of compact construction are a cube-shaped house, a spiral staircase instead of a straight staircase, a closed building, etc.

Compact construction not only reduces the construction price, but also ensures a lower e-level, which reduces your energy bill.

4. Opt for a garage outside the home

A garage in the house takes up a lot of living space, which has a negative influence on the principle about compact living from point 3. Therefore, place your garage outside your house. Opting for a carport instead of a brick garage will save you extra costs.

5. Stable foundation

Take into account the carrying capacity of your building plot. If it is unstable, the costs can be high. If there is any doubt about the bearing capacity, have a ground drilling performed.

6. Choose price-quality material

Aim for an ideal price-quality ratio with your choice of materials. This way you can easily save a lot of euros without sacrificing too much on quality or taste.

Some examples

• Floor covering: choose laminate instead of parquet. This can already save a lot of euros per square meter.
• Interior doors: choose MDF instead of glass or oak.
• Windows and doors: opt for PVC. PVC is cheaper than aluminum and easier to maintain than wood, but it is also strong and insulates well.
• Kitchen: go for a solid standard kitchen instead of a custom or design kitchen. A worktop made of wood, stainless steel or bluestone is also a lot cheaper than granite or composite.

TIP: you can initially opt for cheaper materials or a partial finish, and then upgrade your home step by step at your own pace and budget.