Want to cut your new home costs by 10% or more? That's what building groups can do.

Building groups, inspired by German baugruppen, have been successful in Australia in providing high-performance, affordable housing in existing suburbs. These groups consist of future resident-owners who come together to develop their new homes, saving on developer's profit margins and having more control over design and quality. Building group members in Australia have saved around 10% on their new home building costs since 2010, as well as on transfer taxes/stamp duties and mortgage interest payments. While building groups offer significant rewards, members must also take on extra risk and contribute more upfront equity. However, new participants in the construction market can provide development expertise to building groups. The model is ready to be scaled up to deliver more affordable ownership and rental options, with the need for institutional investment from impact investors, community housing providers, member-based organizations, and governments. Building groups also offer improved outcomes for shared equity schemes, as developing housing creates immediate equity that can be used to buy out co-investors earlier. [Extracted from the article]