In the dynamic landscape of the Australian real estate market, where economic uncertainties loom large, people are increasingly looking for ways to secure their financial future.
With interest rate rises becoming commonplace in the current market, and inflation in a state of flux, many home buyers are uncertain of what the best course of action will be – to wait it out and see what the market does in the future, or to build now and hope to beat any upcoming changes. The trouble with both these approaches is that it’s very difficult to predict what will happen over the coming year, not just with interest rates but also within the building industry itself. This article delves into how modular building in Australia could be the answer to help you beat interest rates and inflation and get into your new home.
While the construction industry has largely been moving in a positive direction over the last 12 months, house prices are still high and material and labour costs can vary wildly, especially on traditional builds where homes are still at risk from weather delays, material shortages or lack of quality tradespeople to get the project done. So, while waiting to see if you can get a cheaper price is an option, not only does it mean you can’t plan your moving in date, but it also means that you’re at risk of prices continuing to climb, and you being a year down the line looking at an even more expensive build.
That’s where a modular home from Manor can be the answer…
Faster Build Times
Modular construction is known for its efficiency. The majority of our building process takes place in a controlled factory environment, allowing for work on various components of a home to happen at the same time. This streamlined way of building significantly shortens construction times compared to traditional on-site builds. As a result, borrowers financing the construction of a modular home face a shorter period of time where interest is applied to their construction loans.
Shorter construction timelines also mean less chance for you to be affected by variable interest rates. Traditional construction projects often face delays due to weather conditions or other unforeseen issues, leading to extended build times. In contrast, modular construction minimizes these delays, providing a level of predictability that means you can plan accordingly, and you’ll know when your home will be finished.
Cost Efficiency and Predictability
Modular construction is inherently cost-effective. Our process allows for economies of scale, reducing material waste and labour costs. Lower construction costs mean that borrowers need to finance a smaller amount, resulting in less interest paid over the life of the loan. Furthermore, we work to tight build deadlines, so you won’t be worried about your project blowing out and costing you more money – so you can be confident about the amount of finance you’ll need, so there won’t be unforeseen additions that will drive up your interest payments.
Additionally, the controlled environment of modular building reduces the impact of inflation on material prices. Traditional construction projects, relying on on-site work, are vulnerable to market fluctuations in the prices of construction materials. We can negotiate bulk material purchases at fixed prices, helping to protect homeowners from the inflationary pressures that can affect overall project costs.
Locked-In Build Contracts
Perhaps one of the major benefits of a modular build with Manor is our build journey. Once we’ve worked with you to design and plan your new home, you’ll only invest $6,700 on your PASSPack – the stage where we put together all the drawings & reports, and help manage the council application process. Between this stage and the signing of your build contract, we work hard to make sure there are minimal changes to your house price.
Then, once you’ve signed your Building Contract the price of your home is locked in! This way, you know exactly how much your home is going to cost to build, and you won’t have to worry about any further changes in interest rates or material inflation when it comes to this cost. There are also some longer-term benefits on your finances from building a modular home…
Energy Efficiency and Long-Term Savings
Many modular homes are designed with energy efficiency in mind. The use of advanced insulation materials, energy-efficient appliances, and sustainable building practices help keep utility costs down. Homeowners who build a modular home can experience reduced ongoing expenses, providing a degree of protection against the impact of rising inflation on day-to-day living costs.
Energy-efficient modular homes not only reduce utility bills but may also qualify for various incentives and tax credits, further enhancing the financial benefits for homeowners. These long-term savings contribute to a homeowner’s ability to navigate economic uncertainties, including periods of inflation.
Adaptability and Future-Proofing
Modular homes also allow for innovative design and quality finishing. Homes can be designed with features that enhance their liveability and longevity, reducing the depreciation associated with aging and older properties. This adaptability can be a financial advantage over the long term, as homeowners may find it easier to maintain the value of their property in the face of inflation.
So, while it may seem an uncertain and unpredictable time to build your new home – there are actually many advantages to taking the plunge and starting your journey. Not only in terms of your finances, but also because you can start enjoying your new home sooner, rather than waiting for the day that may never come.
If you have any questions on our homes, our processes or anything we do here at Manor, please feel free to get in touch with our team.