Building a house depends on a number of factors such as what type of house, what type of builder you use, how many levels, the ground conditions, the level of finish and where you are building. The result can be as little as $1,100m2 to as much as $2,000m2+. Let me explain in a bit more detail.
TYPE OF HOUSE
There are many types of houses you can build such as a standard house, a dual occupancy (one title) and a dual occupancy (separate title). Some house types require separate services, additional council fees, fire separation, more kitchens and bathrooms and larger areas. These all add additional building costs that add to the rate per m2.
Dual Occupancy (one title) - in addition to the standard build price for a house it requires fire wall separation between dwellings, an additional kitchen and bathroom, separate services and additional area +40m2.
Dual Occupancy (separate title) - in addition to the standard build price for a house it requires again fire wall separation between dwellings, an additional kitchen and bathroom, separate services and additional area +60-100m2, town planning fees and council charges to create separate title.
TYPE OF BUILDER USED
Not everyone understands that there are different types of builders in the marketplace. It easy to know which one you are dealing with. The 3 main builder types we see are:
Retail Builders - These builders typically have display homes, spend millions on marketing and they will often allow you to make a custom home. Be aware they have very savvy sales teams which will start you at a low price and have you walking out spending more than you could have dreamed of. They build a lot of homes so their prices are relatively good, but the custom designs are where they will impact your pocket.
Wholesale Builders - These builders typically build and buy in bulk. Normally they will have a list of 60-70 standard designs that they build over and over - hundreds of homes each year. Prices are cheap but customization is limited. Similar to retail builders in that they will normally have very strict build timelines and fixed price contracts.
Small Business Builders - These are your perfect builders for custom designs. They will normally cost a lot more and their build times will be a lot longer.
NUMBER OF LEVELS
The additional price to build a two level 200m2 home of the same size is approximately $30,000 or $150m2. For a larger sized 280m2 duplex expect $40,000+ of additional building costs. Depending on the size of your lot you may have to build a two level home.
GROUND CONDITIONS
The type of soil and the slope of the lot determine what the earthworks and footings will cost. Obviously the more slope the higher the building price. We have recently seen a lot with 2m of fall across the site which added $20,000 to the build price to allow for additional engineering. Adverse soil conditions require more stable footings and thicker slabs adding further cost to the build.
LEVEL OF FINISH
The difference between an investment property level of finish compared to a high-end owner occupier level of finish can be quite significant. It doesn't take much for marble benchtops, high quality tap-ware and full height tiles in the bathrooms to push the build price through the roof. Expect an additional $200 per m2 to go from standard investment level of finish to standard owner occupier level of finish.
WHERE YOU ARE BUILDING
It costs more to build in Sydney & Melbourne than it does to build in Brisbane. This is due mainly to the cost of labour.
DON'T GET CAUGHT OUT WITH THE INCLUSIONS
This is where most people get caught out. Most builders advertise a build price which does not include everything you need to actually move into the house. A friend of mine showed me a price recently for a owner occupier style home and the price was from $406,000. By the time she added back in everything she needed such as driveway, flooring, lighting etc the price was almost 30% higher at $516,000.
CONCLUSION
The average house is in Australia is 243m2 costing $300,000 which works out to be $1,243m2. Architectural designed homes start at $2,000m2 and go up to $5,000m2.
A lot of people think you can build a granny flat for $1,000 per m2 because it is small and simple. This couldn't be further from the truth. You still need to build a bathroom and a kitchen so these expensive form a higher percentage of the floor area than a typical 250m2 house. The rate per m2 is actually a lot higher.
I have never met anyone who built a house for less than what they thought it would cost so the best advice is to have a budget in mind and stick to it. You can always reduce the size of the home and the level of finish to come back in on budget.
If you wish to know more about finding a good deal with the right builder, then please feel free to contact us.
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