Building your first home is exciting. You get to choose where you live, select a home that suits the way you want to live and watch it take shape from the ground up.
But if you’re putting together a budget for the first time, it’s important to look beyond the price advertised on the block of land or house and land package.
There can be additional costs along the way, from site preparation and approvals to landscaping and the finishing touches that make a new house feel like home [1].
The good news? Many of these costs aren’t really “hidden” once you know to look for them. Planning for them early can help you build a more realistic budget and avoid unwelcome surprises later.
At a glance
- Site costs can vary from block to block, depending on factors such as site conditions and the work required to prepare the land [2].
- Not every build price includes the same things, so always check the inclusions before comparing builders or packages [1].
- Pre-construction costs can add up, with surveys, reports, planning and other preliminary work potentially sitting outside the base build price [1].
- Small upgrades can become a big number, particularly when changes are made across fixtures, finishes and furnishings [1].
- Planning ahead is key. At Haven Estate, buyers can explore land and house and land opportunities while considering the complete cost of creating their new home.
1. Site costs and preparing your block
Before construction can begin, your builder needs to understand the land they’re working with.
Soil and ground conditions, the characteristics of the block and the amount of work required to prepare the site can all influence costs. The NSW Government notes that site costs may sometimes be treated as provisional items, meaning the final amount can change depending on the actual work required [2].
Some builders include an allowance for site works in their pricing, while others may calculate costs after completing relevant testing and assessments.
When comparing options, don’t just ask, “What’s the build price?” Ask what’s included for site works and what circumstances could result in additional charges.
2. Approvals and professional fees
There’s plenty happening behind the scenes before your slab is poured.
Depending on your home, builder and land, your overall budget may need to account for items such as surveys, geotechnical reports, planning, design, engineering, certification or other preliminary services [1] [3].
Some or all of these may be included within your building contract or package, so check before automatically adding them to your budget.
The important thing is understanding the complete scope of your quote rather than assuming every builder includes the same services.
3. What does your build price actually include?
This is one of the biggest areas to investigate when comparing new homes.
A base price can be a useful starting point, but inclusions can vary between builders and home designs. The NSW Planning Portal recommends checking exactly what is included in a house and land or project-home base price, as changes to designs, fixtures and furnishings may create additional costs [1].
Look closely at things like flooring, air conditioning, appliances, lighting, stone benchtops, window coverings, driveways and landscaping.
A slightly higher upfront price with more included may ultimately suit your budget better than a lower starting price that requires substantial upgrades later.
Tip: Ask for a detailed inclusions list and work through it room by room. It can make comparing different options much easier.
4. Landscaping, fencing and outdoor areas
It’s easy to spend months thinking about kitchens and bathrooms and forget about everything outside the front door.
Depending on what’s included in your contract or package, you may need to budget separately for:
- Landscaping and turf
- Boundary fencing and gates
- Driveways and paths
- Letterboxes and clotheslines
- Retaining walls
- Outdoor entertaining areas
You don’t necessarily need to create the perfect backyard on day one. Separating the essentials from the “nice to haves” can help you prioritise your spending.
5. Utility connections and moving costs
Your budget shouldn’t stop at practical completion.
There may be connection or account costs associated with utilities and services, plus the everyday expenses involved in moving into a new home.
Think removalists, internet setup and all those surprisingly expensive little purchases that come with moving into a bigger or brand-new space. Curtains, blinds, furniture, appliances, storage and even basic garden equipment can quickly turn into a sizeable shopping list.
Creating a separate move-in budget can help prevent these costs from eating into money you’ve set aside for the build itself.
6. Upgrades and variations
You’ve chosen your home design. Then you visit the showroom.
Suddenly the standard tapware becomes upgraded tapware, the benchtop gets thicker, more power points sound useful and those premium tiles would look great in the bathroom.
Individually, these decisions might not seem significant. Together, they can substantially change the final price.
Under NSW home building requirements, variations to relevant residential building contracts must be documented in writing, and variations will commonly affect the contract price [3].
Before making selections, consider setting yourself an overall upgrades allowance. That gives you the freedom to personalise your home while keeping the bigger financial picture in mind.
And if you do want to splurge, focus on the upgrades that will be difficult or expensive to change later.
7. Don’t forget the cost of finance
The deposit and mortgage repayments aren’t necessarily the only finance-related costs to consider.
Depending on your circumstances and lender, there may be fees associated with your loan, valuations or other requirements. If you’re using a construction loan, the way funds are released throughout the build may also differ from a standard home loan.
There may also be a period where you’re paying rent while your new home is being built, which is worth factoring into your overall budget.
A lender, mortgage broker or qualified financial adviser can help you understand the costs that apply to your individual circumstances.
8. Give yourself a contingency
Even with careful planning, building can involve unexpected expenses.
NSW Government guidance encourages homeowners to understand how and why their building costs may change before signing a contract, including circumstances where provisional costs or variations can affect the final amount [2] [3].
That’s why it can be useful to leave some breathing room between your maximum budget and the amount you actually plan to spend.
Your contingency might end up covering an unexpected cost, a variation you decide is worthwhile or simply the expenses that come with moving into your new home.
And if you don’t need to use it? Even better.
9. Check what first-home buyer support is available
If you’re building your first home in NSW, it’s also worth checking whether you’re eligible for current government assistance.
For example, eligible first-home buyers purchasing vacant land on which they intend to build may qualify for an exemption or concession on transfer duty through the NSW First Home Buyers Assistance Scheme, subject to the applicable eligibility criteria and property value thresholds [4].
Government programs, eligibility requirements and thresholds can change, so check the latest information directly through official government sources before incorporating any potential assistance into your budget.
Building your first home at Haven
Building your first home should be exciting, not a guessing game.
Taking the time to understand the full cost upfront can help you make more confident decisions about your land, builder, home design and inclusions.
At Haven Estate, buyers can explore land opportunities and house and land options in a growing South Coast community, with everyday amenities and some of the region’s best-known destinations within easy reach.
Whether you’re starting to work out what you can afford or you’re ready to find your block, the first step is creating a budget that considers the whole journey, not just the headline price.
Find your Haven
Explore the latest land and house and land packages at Haven Estate and start planning a home that’s right for your lifestyle and your budget.
*This article contains general information only and does not constitute financial, legal or taxation advice. Costs, eligibility requirements and individual circumstances vary. Buyers should obtain independent professional advice before making financial or property decisions.*
References
- NSW Government, NSW Planning Portal: MyHome Planner — ApproveGuidance on preliminary builder fees, surveys, geotechnical reports and additional costs associated with changes to base-price designs, fixtures and furnishings.
- NSW Government, Building Commission NSW: Questions to ask before hiring a tradesperson or builderGuidance on understanding building costs, provisional site costs and circumstances that may cause the final cost to change.
- NSW Government, Building Commission NSW: Consumer Building GuideGuidance covering approvals, building contracts, payments, variations and other responsibilities when undertaking residential building work in NSW.
- Revenue NSW: First Home Buyers Assistance SchemeCurrent eligibility information and transfer-duty concessions and exemptions available to eligible first-home buyers purchasing homes or vacant residential land in NSW.