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What are the hidden costs of building a new home?
10 Hidden Costs of Building a New Home
The biggest hidden costs in a new build are usually site works, external works, utility connections, finishing items and variations. Many buyers plan for the house price and then discover the extras once the contract is signed.
The 10 hidden costs
- Site works. Clearing, fill, retaining walls, drainage, rock and soil issues.
- Utility connections. Water, power, sewer and telecommunications.
- Outside the house. Driveway, paths, fencing and landscaping.
- Finishing items. Floor coverings, window coverings and light fittings.
- Cooling and appliances. Air conditioning, fans and appliances.
- Upgrades. Solar, hot water and security.
- Fees. Council, certifier and survey fees.
- Insurance and duty. Insurance during construction, and stamp duty on the land.
- Holding costs. Interest on construction loans and temporary rent.
- Variations. Any change to the plans after signing.
How to avoid surprises
- Get a full inclusions and exclusions list in writing
- Ask for site costs to be assessed before you sign
- Add a contingency to your budget, often around 5 to 10 percent
- Finalise your selections early
- Ask how variations are priced and approved
Plan the whole budget
Choose a builder who gives you a transparent total cost estimate, including site works and extras, so the number you plan around is the number you pay.
Frequently asked questions
What is a variation?
A change to the agreed plans or specification, usually priced and approved in writing.
How much contingency should I allow?
Many advisers suggest a buffer, so ask your builder and lender what suits your project.