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7 Most Common Hidden Costs To Build A House In Australia

How much does it cost to build a house  in Australia? There are a lot of hidden fees and expenses that cannot be calculated in a one-size-fits-all price. Here is a checklist of the costs that you need to include in your home building budget so you can properly organise your cash flow. Hidden Costs...
7 Most Common Hidden Costs To Build A House In Australia
iBuildNew Editorial TeamApril 25, 20174 min read
How much does it cost to build a house in Australia? There are a lot of hidden fees and expenses that cannot be calculated in a one-size-fits-all price. Here is a checklist of the costs that you need to include in your home building budget so you can properly organise your cash flow.Hidden Costs When You Build A House1. Soil and contour tests Before you build a house, a building company will first conduct a soil and contour survey, which are two separate tests. It is important to note that at this point you will often be required to place a deposit with your chosen builder. Surveyors will visit the construction site, drill three holes, and determine the quality of the soil in the land. Quotes are based on the classification; the best soil falls under M classification. Otherwise, there are extra costs when the soil quality is poor, such as rocky land that can make any building process difficult. The contour test, on the other hand, focuses on the slope of the property. The larger the slope your property will be sitting on, the bigger the cost. If an extreme slope is present in your chosen location, you may need to consider looking for a custom builder to accomplish the task of building a home.2. Site costs This expense has the widest range of variability when calculated; each case is different because it will be based on the results of your soil and contour survey (see number one). Aside from the quality of the soil and the steepness of the slope, site costs can also be incurred when:
  • Lots of trees needed to be cut off.
  • The site can cause traffic interruptions or road closures.
  • You need to construct retaining walls.
  • The area is prone to bushfires.
  • The area is prone to flooding.
To understand site costs more check out this post, or talk to your builder to see which fees apply to you so you can get a rough estimate of the total site costs.3. BASIX (NSW) If you are constructing a property in New South Wales, the state’s government requires builders to comply with BASIX (Building Sustainability Index), a set of regulations dedicated to improving the sustainability and eco-friendliness when you build a house.

4. Flooring When you build a house, the flooring in your house may not be included in the quote. Generally, your house will be constructed on a concrete slab, and the rest is up to you. Make sure you plan for floorboards, tiles, carpet, and other flooring elements, and discuss them with your builder to get a reliable estimate.5. Landscaping Like the flooring, your driveway may not have been covered in the quote, as quotes usually only include the house building itself. Everything else is an extra. Depending on the driveway design and material you want, the price will vary. If textured driveways are out of your budget, you can opt for the concrete standard.6. Add-ons and modifications It pays to be happy with your design plan before proceeding to the construction process. Any alterations when you build a house after signing your building contract, will cost hefty charges, including extra labour and material costs, engineering, drafting, and approval fees, and legal and penalty clauses for modifying the contract.7. Land registration A new, unregistered block of land can incur additional costs. Talk to your building or real estate company to see if the location has already been registered. If not, you can use a titles fee calculator online to have an estimate of the charges.Other Fees When You Build A House Wheelie bins (for some areas), lender’s mortgage insurance, and interest repayments can also affect the total cost of constructing a house in Australia. For a comprehensive quote, discuss all these factors with your builder in advance to ensure that you don’t go over the budget.Questions you should ask before signing your contract of sale.With that said, finding a builder can be difficult, but at iBuildNew, we can connect you with builders who can service your area and your requirement. After we have done the leg work for you and are able to create a shortlist of builders, you will able to get quotes and estimated costs for your build. This way, you can get a set price quote for a completed home and avoid hidden and surprise charges.
iBuildNew Editorial Team

iBuildNew Editorial Team

As the specialist voice of Australia’s largest new home building resource, the iBuildNew Editorial Team delivers deep-dive coverage into the house and land sector. From analysing new estate launches to highlighting the country’s leading home designs, we track the building journey to provide clarity for every buyer.

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