Building a new house is a big project that requires a significant financial investment. Matching your needs and desires to your budget is not always easy, and sometimes even impossible. But when a house is a real life project, making concessions on certain essential points can be unthinkable. Fortunately, there are solutions to reduce costs. Our explanations.
Negotiate home loan and loan insurance
Do not go headlong to your usual bank advisor to obtain a mortgage without negotiating. Your bank considers you an acquired customer and will be reluctant to make you a favorable offer if you do not rely on the competition. Approach several other financial institutions so that you can present better offers to your advisor and negotiate a loan that is more to your advantage.
You can also use the services of a broker. This will canvass the banks for you after having compiled a solid file that highlights the strengths of your profile. The broker saves you valuable time and knows how to negotiate with banks to present you with attractive offers. In addition, if some are free, those who charge for their procedures are only paid if they bring satisfaction to their customers. Negotiating your home loan is a first step to reducing the costs of your project.
Also be careful with loan insurance. Banks that grant loans at reduced rates tend to catch up on the amount of insurance. Get several quotes and negotiate to force the bank to align. If she refuses, head to the competition! You also have the possibility of signing with the bank which offers you advantageous credit and then changing your mind; during the first year from the signing of the loan, you have the possibility of changing borrower insurance whenever you wish thanks to the Hamon law. Do not neglect this point, because you can earn 1,000 to 10,000 euros on your loan!
Finally, remember to list the aid you can claim, such as the zero-interest loan (PTZ), the 1% employer loan, regional aid for home ownership, etc.
Participate in the design of your house plans
Think carefully about the plans for your future home before even contacting a builder. List the elements that are essential to you and those that you can give up without regret. Go to a builder who offers you a complete CCMI to avoid unpleasant surprises and who will design the plan of your home with you. A competent professional must offer you plans that meet your budget and suggest solutions to compensate for the points that will not be feasible.
To avoid using an architect, design a house that does not exceed 150 m² of living space. You will save the costs of a very expensive service.
In addition, the CCMI allows you to measure your expenses much better. This type of contract, which is very regulated by law, forces the manufacturer to limit the margins, which allows you to benefit from fixed and reasonable costs compared to those practiced on the market.
Choose the right ground
Avoid rushing and choose the right land that will save you additional costs. Think about the area you really need; no need to think too big if you don’t have the use of a huge plot or if you don’t have the time to maintain it afterwards.
Be aware that serviced land is more expensive to purchase, but you avoid the costs and procedures associated with servicing. Also prefer a land connected or connectable to mains drainage, you will avoid the high costs of individual sanitation. Finally, land closer to the road costs less than land farther away, because connection fees are linear and can double or even triple to service remote plots.
Opt for a compact or two-storey house
A compact house, i.e. square or rectangular in shape, is faster and easier to build, which reduces costs. It’s a more economical house that will require fewer materials, less labor and less complexity. On the contrary, a house with an irregular shape, with advances in one direction or the other, will require a particular frame that is much more expensive. For the same area, opting for an L-shaped house, for example, will cost you on average 15% more than a square or rectangular house.
Moreover, if the single-storey house is more attractive, the two-storey house is more economical on all scales. With a two-storey house, you have a large living area for a smaller footprint, so you can buy a smaller piece of land, and therefore less expensive, for the same habitable area. Likewise, due to its smaller footprint, you reduce the cost of foundations, materials and everything related to the roof (framework, insulation, tiles, etc.). Thus, with equal living space, you make real savings by building a two-storey house.
Replace the garage with a carpark or carport
Most houses have a garage, but the vast majority of these rooms are used as storage rooms rather than enclosed vehicle shelters. However, building a garage is expensive. It is a room integrated into the house which requires foundations and integral covers as well as a suitable and expensive door. If you do not really use it, prefer to provide a carpark or carport system.
These outdoor devices can be attached to the house or independent and designed to house one or more vehicles, or even, if necessary, a closed space that can be used as storage or a garden shed. This solution can be built at a later stage, which not only reduces construction expenses (compared to a garage), but also postpones this cost to a later and more convenient time.
Take care of the work you master and the finishing touches
It is best to entrust the shell of your home to competent professionals. However, you can take care of certain tasks and finishes. You should know that a manufacturer will offer you a range of equipment prices for each area and the labor costs for their installation. However, the costs can be very high depending on the type of items chosen and the craftsmen used by the builder.
If you have some knowledge in certain areas or if you have competent handymen around you, you can save money by doing the finishing touches. For example, you can refuse the floor covering offered by your manufacturer, and choose it yourself in the store of your choice before installing it yourself or having it installed by a less expensive craftsman. The same applies to other finishes such as paint or furniture. Nothing obliges you to pay for sanitary equipment and bathroom furniture offered by your manufacturer; you have the right to refuse them and opt for a less expensive range that you will assemble yourself.
Through this, you can achieve very significant savings, of the order of several thousand euros, or even tens of thousands of euros.