If you have dreams of building your own house, it’s important to know how much money you’re going to need to borrow or save to get your project built. It can be quite tricky to put an exact figure on how much a house will cost given how many variables there are in the house building process.
There are many important factors that will impact the costs associated with building your house, but here are three of the main ones:
Size of the property
The bigger the house, the more materials you will need to build it. In Australia, building costs are usually calculated by multiplying the number of square metres of the total floor area by the estimate provided by the building company you employ to build your house.
Type and quality of the materials used
Whether you’re using a timber finish or building a full brick house, the price of materials you use will have one of the largest impacts on your final price. Things like stone bench-tops, reverse air-conditioning and custom fencing also add to the final cost of your house.
Site considerations that need to be made before building
Depending on the type of property you have bought, there may be costs associated with getting the land ready to be built on. Land that has a natural slope for instance will need to be evened out before a house can be built on it.
Building costs per square metre
According to the Riders Digest 2019 Melbourne Australia and the ABS, building a house in Australia can vary wildly in cost. The average cost to build a house in Australia in 2018 was $313,800, but depending on the area the house was built in and the size of the house, the price could vary between $271,000 and $1,124,550.
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Average cost to build new house since 2003
The average cost to build a house in Australia has increased 74.8% since 2003-2004, with the ACT experiencing the greatest increase in costs at 8% per year and Queensland having the smallest increase at just 4.5% a year.
While this large increase in costs over the last 15 years can be a bit discouraging for people looking to buy a house in the future, remember it can often be cheaper than buying a pre-existing home, also with the added bonus of being able to build the house to your particular style and taste.
Keep in mind there are additional costs to building your home besides the build and purchasing the land. Depending on the state you live in and other factors, you may need to pay stamp duty on the property, planning fees, transferral fees and finishing costs. But if this is your first home, you may be able to apply for the First Home Owner Grant which assists first time home owners with different financial costs. See our state-by-state guide to the First Home Owner Grant here to see if you’re eligible.
Disclaimer: Data on this website was sourced in August 2019 from the latest available data August 2019. Auto & General Services Pty Ltd does not guarantee the accuracy or completeness of the data and accepts no liability whatsoever arising from or connected in any way to the use or reliance upon this data.
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