With interest rates staying low and expected to remain low all year there is going to be a few unexpected casualties. The most important is the cost to build a home is set to rise.
This is going to happen for a few reasons;
- The Australian dollar is becoming weaker. This directly raises the cost of all imported materials which means all the cheaper products in particular from China are becoming more expensive to buy.
- The builders are still busy building. This means a less competitive market place for people wanting homes built. Why would a builder discount their services to win your job if they know they can go down the road for a similar project with better profit!
- New regulations with regard to sustainable environment initiatives, bush fire safety, on-site safety during construction and insurance is all going to cost you more. So be it……we all want positive outcomes for the environment and safety even if it costs a little more to comply with regulations.
If you want a new home in 2016 then you need to expect a rise of about 2.5% build costs from 2015. Therefore a $200k home in 2015 is now going to cost you $205k. Small rise in comparison to the overall cost of a new home.
Greenify Consulting helps people wanting to build a new home achieve their dream by maximising their cost savings not only by clever design for the initial build but also with reducing the builders margins so profit remains in your pocket. Also owners will also benefit from ongoing cost savings over the life of the building with sustainable energy efficient and passive design initiatives.
Contact Greenify Consulting for a friendly chat about your project.