Tips for Building your House on a Budget

Posted by: IIPS Category: Real estate Comments: 0

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Building a home for the first time on a budget requires the highest attention to detail. The growing rate of land prices, construction material and transportation charges can increase the total cost of the project. Cost reduction can be attained in three main areas: location, material, and processes.

First-time homebuilders can cut costs by using the following tips.


1. Avoid building your house in a remote location.

The location of your land plot can significantly increase the price tag of construction. If the plot is located on an uphill area, a considerable budget will be spent on making the place fit for construction. Moreover, if the construction of a house requires earth-filling, rock blasting or clearing away trees, to get a strong foundation, the budget will increase. Be careful and avoid building a house in a remote location to cut transportation and miscellaneous costs.

2. Keep in mind the cost of commute

If you decide to buy a plot of land in a developing area to cut expenses, it is important to consider the cost of transportation and commute. The transportation of labour and construction material add to the total cost of construction. Building a house far away from the city or at a significant distance from your workplace can increase commuting time and add to the overall expenditure. Therefore, it is important to consider these distances before finalizing the house location.

3. Build a smaller house

Large houses are high maintenance and ultimately increase the costs of construction. . You can reduce the costs by opting to build a smaller house.

Construction Material

1. Type of Material

The construction material can make a significant difference to the total cost, which makes it an important element to consider. Builders need to be conscious of the type of material they use during construction. This enables them to build durable houses that are long-lasting, low-maintenance and cost-efficient.

2. Cement flooring and walls

To reduce the costs of construction, builders can use cement flooring. It is a durable and cost-efficient alternative to stone and ceramic tiles. . You can make your house visually appealing by decorating the cement walls with mosaic tile borders and a coat of paint. Using concrete can also give the walls an industrial look. Moreover, you can use ready-made concrete blocks to cut the cost of construction. Therefore, building your home Lego-style will prove more cost-effective and simpler to use.

Additionally, using cement to make walls, floors, and the base helps with installing masonry furniture, which is economical and durable.

3. Use Recycled material

Using recycled material can cut costs by a large margin. For instance, Sofa frames and coffee tables for the house can be made by using old wood or pallets. Garage sales and thrift shops are incredible places to buy recycled and durable furniture with a low-price tag. Recycled materials can also be used in several home building processes like decorating or accessorizing. For example, recycled wood is the ideal material for building roofs over the terrace and outdoor deck flooring. It is cost-efficient and adds to the natural aesthetic of your house design. You can opt for a D-I-Y project with wood to build decorations of the house yourself to further reduce costs.


1. Monitor construction

It is important to closely monitor the construction allowances to ensure the availability of construction material that you paid for. This includes optimization of the decoration, finishing and other structural elements that were finalized before the construction began. Ensure effective communication with your contractor to avoid any misunderstandings that could increase the costs of construction.

2. Employ a certified general contractor

Employing a well-qualified contractor will save you from incremental costs during the home-building process. Contractors with well-established relationships with suppliers and subcontractors can help you cut costs.

3. Avoid Change Orders

The change in materials or design blueprints during the construction process can charge additional fees and increase the costs of construction. . Besides the labour and material, cost-change can chip away valuable time and add to the frustration in the home building process. It’s important to determine the exact parameters and design of the house before initiating the construction process.


The home building process can become cost-efficient if one pays attention to details. Design, building materials, and the construction processes are essential variables to consider while working with a small budget. The location of the house and the type of plot of land should be considered for all future costs before buying land for the house. The right type of construction material can help you reduce costs by a significant margin. In addition, close monitoring of the construction processes and avoiding design changes during construction, are important ways of reducing unnecessary costs.

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IMARAT Institute of Policy Studies

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