Ultimate Guide! Costs to Consider When Building a New House

Building a new home is one of the most exciting experiences in life. It is your chance to design a home that perfectly matches your lifestyle, your family’s needs and your vision for the future. However, before the dream becomes reality, it is crucial to understand the full scope of costs involved. While it’s easy to think only in terms of the total building a new house cost, there are many additional expenses, both big and small, that can come as a nasty surprise for homeowners in Australia.

In this blog, McDonald Jones Homes explores these potential costs and how you can budget more effectively to reduce financial stress and make confident, informed decisions during your home-building journey.

Land Purchase Costs

The home-building journey begins with finding the right parcel of land. Beyond the stated price, there are a number of hidden or one-off costs that come with land purchase.

Location and Size

Land prices vary significantly based on where you’re buying. Major urban areas tend to be more expensive while regional or outer suburban lots may be more affordable. Larger blocks also mean more space but typically come at a higher upfront cost.

Stamp Duty

Before you get to the building a new house cost budget, consider stamp duty, which is a government tax that is often one of the largest additional expenses. The rate depends on the state or territory and the value of the land.

Legal and Conveyancing Fees

The cost of building a house must also include professional legal advice that is important to ensure that your contract is clear and your rights are protected during the purchase process.

Registration and Title Fees

This consists of essential paperwork that confirms your ownership of the land. Factoring these into your initial costs to build a house ensures there are no shocks once you’ve found your perfect block.

Site Preparation & Earthworks

Once you own the land, preparing it for construction can be more complex and costly than some homeowners expect. Here are some of the key aspects that can impact the cost of building a new home.

Clearing and Levelling

This involves the removal of trees, rocks and debris that may need to be removed before building begins.

Soil testing

Soil tests are carried out to determine soil stability and the type of slab required. Poorer soil types or highly reactive clay may mean more expensive foundation systems.

Excavation and Retaining Walls

If your block is sloping, earthworks will likely be necessary to create a level foundation. Retaining walls, drainage systems and additional fill may add further costs.

Stormwater and Drainage

Blocks below street level or in flood-prone areas may need more substantial drainage work.

Even a block that is promoted as “ready to build” often requires preparation, so it’s best to account for these in your house building costs.

Design & Planning Fees

Every dream home needs a well-thought out and creative design. While builders like McDonald Jones Homes provide designs as part of their services, there are still fees associated with planning and approvals which can drive up house building costs.

Architectural or Drafting Services

If you customise or modify an existing plan, additional design fees may apply.

Council or Development Application Fees

These are required to secure approval for your home’s design and ensure it complies with local planning regulations.

BASIX and Energy Efficiency Assessments

These assessments are mandatory in many states, because they ensure that your home meets environmental and efficiency standards.

Engineering and Surveyor Reports

If you are building on a sloping or irregular block, you may require specific reports that clear the site for construction purposes.

Although these add to the costs to build a house, they are crucial upfront investments that ensure a smooth construction process by ensuring that your home complies with all legal and environmental requirements.

Construction Costs

The largest part of your budget will naturally go into construction itself. This includes the building structure, materials and labour.

• Base building costs cover the essentials such as the foundation, framing, roof, walls and internal structure.
• Materials and finishes will differ in cost based on the quality and type you select. For example ,brick vs. render, tiles vs. Colorbond, laminate vs. stone.
• Labour will be an additional cost since skilled trades are a major component of construction.
• Larger homes cost more not just in terms of build but also in long-term running costs, so balance your dreams with your budget.

Choosing a reputable builder with transparent pricing will help you keep the cost of building a new home within budget.

Fixtures & Fittings

This is the stage where your house really starts to feel like a home, but it’s also where costs can escalate quickly.

• Kitchen and bathrooms: Benchtops, cabinetry, appliances, sinks and tapware vary widely in price.
• Flooring: Carpet, tiles, timber, or hybrid flooring each have different costs and durability factors.
• Lighting and electrical: From basic downlights to statement pendants, choices affect both budget and atmosphere.
• Wardrobes and storage: Built-in wardrobes, shelving and cabinetry add function and style but also add to costs.

Utility Connections

Utilities are a key aspect of the overall cost of building a house. Here’s what to expect when you are building your home.

• Water and sewerage: Depending on the land, connecting to mains water may require additional works.
• Electricity and gas: Extending or upgrading connections can increase costs.
• Internet and NBN: Most new estates include NBN infrastructure, but older or rural areas may require separate solutions.
• These are non-negotiable costs, so it’s best to confirm connection availability when purchasing your block.

Trusted Home Builders for New South Wales Homeowners

The excitement of building a new home can quickly become overshadowed by financial concerns. However, with sound planning and a trusted home builder by your side, you can ensure that you get the home you’ve always dreamed of without stretching your budget to breaking point. Here at McDonald Jones Homes, we pride ourselves on transparent pricing, quality inclusions and expert guidance throughout the building process. Whether you’re a first-time buyer or building your forever home, our team is here to help you understand the costs involved. Contact us today to explore a wide range of cutting-edge home designs in Australia.