Home Construction Tips

Is it expensive to build your own home?

Table of Contents
    Add a header to begin generating the table of contents

    How much money should you anticipate spending in order to construct a home in Australia in the present day?

    The answer to this could be summed up with that annoying but frequently appropriate question: how long is a piece of string? If this doesn't sound trite, promise it's not.

    The cost of constructing a house is highly variable and is determined by a number of factors, including the size of the property, the materials that are utilised, the layout of the home, and the builder that is selected. There is also a geographical component to pricing, with some cities having generally lower construction costs than others.

    At Hitch Property Constructions, we have a wide selection of the very best home design constructions for you to look through.

    How Much Can You Expect to Pay?

    Home Construction Tips

    To begin, let's get one thing straight: the base price that builders advertise on billboards and display on their websites is typically just a starting point, and it does not reflect how much your home will actually cost when it is 100 per cent completed. This is something that needs to be made perfectly clear.

    This is due to the fact that the "starting from" prices typically only include the fundamentals of the package.

    If you are looking for a full price that includes everything from the carpeting to the landscaping and driveways as well as the white picket fence that is located in the front, then you need to shop around for what is known as a "turnkey" package – which means that all you need to do at the end is turn the key and step inside.

    The cost of constructing a house can vary greatly, particularly with regard to the location in Australia at which the house will be constructed.

    Additionally, as was stated earlier, the size of the property, as well as the quality of the finishes, will have an effect on the overall price.

    You can anticipate paying significantly more for a very high-end home that features custom-designed finishes and a tailored design. These kinds of homes can cost anywhere from $1500 to $3000 per square metre and even more.

    There are a lot of different things that can have an effect on how much it will cost to build a house, including but not limited to the following:

    The Cost of the Land

    When attempting to estimate how much it will cost to build a house in Australia, the first thing that must be taken into account is the cost of the land on which the house will be constructed. This cost varies greatly from state to state.

    According to the report "2020 State of the Land" published by the Urban Development Institute of Australia, the median price of a lot in Sydney was $459,000, while the price in Melbourne was $330,000, and the price in Adelaide was $179,000.

    The average price of a square metre of land in Sydney was $1209, while in Melbourne it was $837, and in Adelaide, it was only $400.

    The Average Cost of Building a Home

    According to the Australian Bureau of Statistics, the average cost of a building in Australia was $1393.55 per square metre in December of the previous year. This figure was influenced by a variety of factors (ABS).

    Nevertheless, this number does not take into account design, planning permits, any site works, or any cost blow-outs that may occur.

    The data from the ABS December 2019 Buildings Approvals show that the typical home in Australia is 229.8 square metres in size. This results in a cost of $320,238 for the construction portion of the project.

    On the other hand, the director of Wolf Architects, Taras Wolf, stated that the cost of building a house with an architectural design begins at a minimum of $3,000 per square metre and can go as high as $5,382 per square metre, which is equal to $50,000 per Australian house square metre (9.29sqm).

    The cost of an architecturally designed home can be difficult, if not impossible, to compare to the cost of a home built by a "volume builder for as little as $1600 per sqm," according to Wolf.

    Because no two clients, sites, or requirements are ever truly identical, architecturally designed homes come with a higher price tag due to the nature of each one is essentially a one-off prototype. This contributes to the higher price tag. It has less to do with the quality of the materials that are used and more to do with the amount of time that passes.

    Although he did not provide an average price for a building with a large builder due to the many variables involved, he did say that the designs offered by his company are "architecturally inspired to deliver a stunning home at a lower cost."

    More than 90 customizable floor plans are available for customers to choose from when working with this company.

    Builders often operate as part of a national franchise network, and they recommend to customers that they choose a layout from one of three different price ranges. Check out Hitch Property Constructions Melbourne home repairs to help you to build your dream house. 

    What Factors Affect the Cost of Building a House?

    Land and Location

    The price of the land is the primary contributor to the overall cost of the home for the budget, and it is the land that, in the vast majority of cases, will decide how much money is allotted for the construction of the house.

    The total price will also be impacted by the topography of the land, such as whether it is level or sloped, for example. Taxes, insurance premiums, and the costs of certifying one's professional status as well as other administrative procedures all differ from state to state.

    Constructing a home or business outside of a major metropolitan area will, in addition, have an impact on the costs associated with out-of-area allowances and additional travel.

    Size of the Property

    In most cases, the price of the real estate will increase proportionately with the size of the property. Whether measured in square metres or in terms of the number of stories, the cost of the property increases in proportion to the size of the building on which it is situated.

    Because it will require additional features like stairs and scaffolding, adding a storey to your property will also significantly increase the amount that you will have to pay for it.

    A larger property will also directly result in an increase in the costs associated with all of the other aspects of your build, such as the materials and the tradesmen.

    The larger the house, the greater the quantity of building supplies that will be required.

    Multiplying the total floor area in square metres by the cost estimate in dollars per square metre that is provided by the building contractor is the standard method for calculating building costs in Australia.


    The cost of constructing a home with two stories will typically be higher than the cost of constructing a home with one story. This is due to the fact that constructing a home with a second story requires the use of additional items, such as an additional floor system, stairs, scaffolding, and fall protection equipment, among other things, which are not always required for the construction of a home with a single story.

    Compared to the average single-story home, which starts at $190,000 for a four-bedroom residence, a double-story home with four bedrooms can be purchased for as little as $290,000.

    The difference in price between a one-story and a two-story home is typically between $80,000 and $100,000; however, these price ranges do not typically include all of the turnkey amenities that are available.


    The materials that are used in the construction of your home will have a significant influence on the overall cost. These materials can range from brick and brick veneer to lightweight clads like weatherboard.

    Brick veneer and fibre cement sheet cladding are likely to end up having comparable costs when compared on an approximate level.

    The price of the brick component will go up due to the various types of bricks and mortar colours available, with some bricks costing approximately three times as much as your basic brick option. The comparison also includes lightweight cladding as another comparable element.

    The overall cost of constructing your home can be heavily impacted by the kinds of materials that are used as well as the quality of those materials.

    The different types of materials won't mean much to the average person, but the use of a timber frame is typically the option with the lowest cost, brick veneer represents a price point in the middle, and double skin brick is the option with the highest cost.

    In addition, not all bricks are made the same, and the price can be affected by factors such as the mortar colour and the brick's composition.

    When looking inside the home, the quality of the carpet or tiles, whichever you have, is another significant factor that contributes to the final cost.

    Utilizing materials of a higher quality will typically result in an increase in cost; however, doing so can reduce the likelihood of requiring maintenance in the future and can also result in an increase in the value of the property.


    There is a good chance that you will not be building your own home; rather, you will need to hire professionals to do so on your behalf unless you are applying to be on "The Block."

    It is important to have a good relationship with your builder to ensure that everything goes smoothly with your build, and it is preferable to go with someone reliable who is more expensive than someone who is less expensive but questionable.

    Make sure your builder has the appropriate qualifications, including being appropriately qualified, registered, licenced, and insured.

    In addition, ask about their experience working on projects that are similar to the one you are working on so that you can see the evidence of their work.

    You are going to require every type of tradesperson, including but not limited to plumbers, electricians, painters, tilers, and plasterers.

    The cost of your build is also affected by the trades you make. Different prices are typically charged for upper or lower bricks, as well as single- and double-height bricks when conducting brisk trades.

    In general, a single rate applies to each type of lightweight cladding used in lightweight-clad trades. Then there are the various craftspeople, such as plumbers, electricians, tilers, painters, plasterers, renderers, and even landscape gardeners, that you will need to hire in order to get your house ready for occupancy.


    Your builder will typically give you an estimated time of completion for your build. You have the option of requesting that this be shortened in some circumstances; however, doing so will cost you.

    It is also not unusual for construction projects to run behind schedule, whether as a result of inclement weather or subpar builders. This will only result in an increase in the costs that you incur, so make sure that you are well-prepared for this scenario in the event that it occurs.

    Other Factors That Can Impact the Price

    They will make plans and prepare documents before arranging a "pre-start meeting" after you have signed a contract with a builder and decided on the layout and design of your property. Once you have done this, the builder will make plans and prepare documents.

    At this point in the process, when your house plans are being finalised, the pre-start meeting will take place.

    After receiving approval from the city council, you will be able to make your final decisions concerning all of the design aspects, including the colour of the walls, the type of light fixtures to be installed, and the materials that will be used for the roof and the floors.

    Keep in mind that the prices that are factored in for base contract packages typically account for the least expensive materials, the most basic fittings and fixtures, and the most standard fittings. Although the "prime costs" are generally already in place by the builder, it is important to keep this in mind.

    Should you decide to alter any of these, you may be subject to an additional charge.

    During this process, some of the components of the house that you might want to "upgrade" include the following:

    • Roof: The answer to this question can vary greatly depending on the materials, such as tiles or colourbond, that you select for your roofs.
    • Tiling: a provision will be made for the cost of tiling on a per-square-meter basis; however, this figure is subject to change depending on the nature and dimensions of your ultimate selection.
    • Fixtures and fittings: the price of fancy, nonstandard taps and European appliances will be higher than the price of standard fixtures and fittings that are made in Australia. Additionally, if you choose items that are more difficult to instal, this may result in an increase in the cost of labour. Inclusions like fully ducted air conditioning can add up to a price tag of up to $10,000. (more for two-storey home).
    • If you have ever shopped for a kitchen benchtop, then you are aware of the wide range of prices that can be associated with upgrading a kitchen. Once more, the final price will be determined by the quality of the item that you select as well as the initial specifications that you provide for the contract.
    • When it comes to the electrical system, additional costs may be incurred if you choose to alter the lighting layout that has been initially drawn. If the specifications in your contract only allow for one standard light per room, but you want to have multiple downlights installed, for instance, the additional cost of doing so can quickly add up.

    What Are the Hidden Costs of Building a House?

    carpentry 4

    People are frequently unaware of a variety of costs, which can add up to a significant amount. Consider the example of soil. Have you considered the ground below?

    In the event that the land requires additional soil for the foundation, this can be a significant additional cost depending on the type of soil that is required (in increasing order of quality: M soil, H soil, E soil and P soil). Obviously.

    It starts at approximately $5,000 for the M classification and then increases in increments of approximately $5,000 for the H classification, the E classification, and the P classification.

    Homeowners who live close to bushland are frequently required by law to instal bushfire protection on their properties. A bushfire attack level, also known as a BAL, is a method of determining how vulnerable a structure is to the risk of being consumed by fire.

    The coverage for the BAL 12.5 with the lowest risk costs $3,000, the BAL 19 with the higher risk costs $6,000, and the BAL 29 with the closest proximity to a bushfire hazard costs more than $13,000.

    The following are some examples of smaller hidden costs associated with building:

    • Council-specific building conditions
    • Developer covenant conditions
    • Rock removal
    • Removal and connection costs, e.g. NBN

    Finance for Building a Home

    If you don't know how you're going to pay for the construction of your new home, you should probably consider applying for a loan. But how exactly do you go about obtaining a mortgage for a house that doesn't even exist yet? You get a construction loan!

    A construction loan is a specialised kind of home loan that was developed specifically to assist with the funding of the building of a new house.

    Repayments are typically limited to interest only for the duration of the build, which is typically determined to be 12 months in advance in the majority of cases.

    They are also able to segment your loan into stages according to what part of the construction process is currently taking place, a strategy that is either referred to as progressive draw-down or progress payments.

    Because of the complexity of construction loans, we won't get bogged down in discussing them here; however, if you're interested, you can check out our separate guide to construction loans.

    Because the lender won't be able to accurately value the property, you won't be able to get a standard mortgage for a house that hasn't been built yet, even if you put down a substantial down payment.

    What Are the Energy-Efficient Tips for Building and Saving Money?

    According to research conducted by Mitsubishi Electric, an astounding 96 per cent of Australian households are concerned about the increase in the cost of their energy consumption.

    Because being energy efficient is such a massive cultural issue in Australia and because Australians are concerned about it, here are some tips that can help you save money on your energy bill both while you are building your home and after it is finished being built.

    Hitch Property Constructions has the best range of renovations services to help you create your dream house.


    Some home builders in Australia are including solar-powered hot water systems as a standard inclusion in their homes, and governments in Australia are providing financial incentives for homeowners to instal solar energy systems by way of solar rebates.

    Solar panels can save homeowners anywhere from $1,000 to $2,000 annually on their electricity bills, depending on the location of the home and the amount of energy it actually uses.

    Solar energy systems for homes typically cost between $4,000 and $8,000 to instal. For a bigger 10kW system, prices are $8,000 - $14,000.

    Therefore, it is possible that you will not immediately make savings by using these systems; in most cases, it takes a few years before the savings on energy overtake the cost of the initial installation.


    You could save between $80 and $140 annually by switching out five halogen downlights of 50 watts each for two compact fluorescent lightbulbs of 15 watts each.

    When it comes to lighting efficiency in a contemporary home, LED downlights have established a new standard in both their visual appeal and their energy efficiency. These lights have a long lifespan and consume approximately one-third of the energy that halogen lighting does.

    Heating and Cooling

    It is important to consider how you set up your air conditioning units and heating appliances in a new home in order to help optimise efficiency and minimise costs over the long term. Heating and cooling can add up to around 40 per cent of a household's total energy use, so it is important to take this into consideration.

    When shopping for a new system, it's important to keep in mind that split systems will be useful throughout the year and can be more effective and efficient than portable units.

    When compared to a portable unit, the cost of heating a home with a split system can be reduced by up to $572 over the course of the winter depending on where you live.

    You should take into consideration the zoning capabilities of different rooms if you are thinking about installing a whole-house ducted unit or refrigerated cooling.

    This will allow you to heat or cool only a specific room or section of the house, rather than the entire house, which will result in significant cost savings over the course of the year (potentially in the thousands of dollars).

    Windows and Doors

    Windows and doors in a newly constructed home should each have a double layer of glass to meet the requirements for energy efficiency that are set for newly constructed homes.

    In comparison to regular glass, this will help to block out noise and also reduce the amount of heat that can penetrate the building by up to 40 per cent.


    Installing a washing line as an alternative to using a dryer is probably the piece of advice that is the easiest to implement out of the whole bunch. Doing so could save you approximately $80 each year.

    The potential buyers frequently find themselves falling in love with one another and planning the next decade of their lives around the walls they are walking.

    As a consequence of this, when people are confronted with the possibility that they might lose the house to other buyers, they make offers and buy a property that is significantly outside of their price range and capabilities.

    But the emotional struggle is something that occurs a great deal more frequently when one is building a house because of the creative and hands-on nature of the process. It is essential to establish a budget before making any plans in order to maintain control of costs at the level that is desired.

    Speaking with a qualified individual who is able to provide you with a precise number to work with is one of the primary advantages that comes with consulting with a financial adviser. This benefit is demonstrated once again here.

    The cost of constructing a house can fluctuate widely depending on a variety of aspects, such as its size, location, and the level of quality of its fixtures and appliances.

    If you choose a display home that the builder has designed with cost efficiency in mind, we will be able to give you an estimate of the final price; however, if you choose a unique home—your own special castle that has never been built before—we will not be able to give you an estimate of the final price.

    FAQs About Home Construction

    Ranch-Style Houses

    The most cost-effective type of house to construct is one that has a floor plan that is uncomplicated and uncluttered. Ranch homes are typically one-story structures that have garages that are attached to the house. Because it is simple to find construction plans for them and because they are highly modifiable, you can find a home that is suitable for both your requirements and your financial situation.

    It is typically much more cost effective to build outward rather than attempt to build upward in most areas. This is due to the fact that building upward requires a greater amount of labour, a greater quantity of materials, a number of permits, and the assistance of a structural engineer.

    Construction can be completed fairly quickly, with some builders getting the home up in a matter of weeks as opposed to the months-long timeline of traditional builds. If a home kit sounds appealing, be sure to thoroughly research what the kit you purchase includes, as plans between kits can vary greatly.

    Prefab homes have a number of advantages, one of which is the fact that they are typically very energy efficient. They keep heat in and, as a result, reduce your energy bills thanks to their airtight construction and cutting-edge window technology. Because of their sturdy construction, modular homes have gained a well-deserved reputation for being able to withstand the effects of natural disasters.

    The typical time required to complete a traditional build is between five and six months, with approximately four weeks dedicated to pouring the concrete slab. However, a buffer should be added into this because it is often longer during the winter months or when there are unanticipated earthworks involved or building material shortages. This is why the buffer should be added in.

    Scroll to Top