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Things To Consider When Building Your Home In Sydney

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When it comes to owning homes, nothing beats the experience of building your own home!

While house construction is an exciting process, it can also be stressful for first-time homeowners. That is why it is critical to envision your path before taking the first step. There are many factors to consider while constructing a home. Eliminating some of the uncertainty may make the process go more smoothly.

Thus, what are the considerations that must be made while constructing a new home? Here are some suggestions to help you prepare and confidently embark on your house construction adventure.

Things to Consider

  • Owner builders: Home Builders who want to construct alone should be aware of their responsibilities. As an owner-builder, you are responsible for obtaining permits from appropriate local authorities, maintaining a safe working environment, and budgeting.


  • Budget: Once you have a design for your house, get multiple estimates from builders and compare them. Additional expenses should be included for soil testing, alterations, landscaping, permissions, and land registration. Additionally, determine if you qualify for a First Home Owner Grant (FHOG) offered to first-time homeowners. Homeowner eligibility criteria vary by state.


  • Legislation: Verify that the contractors you choose are licensed. Remember that you must get into a contract with them and obtain legal counsel before signing. Also, all subcontractors (plumbers, electricians, and gasfitters) should be licensed. Additionally, check with your local government to see if you need permission to build.


Some More Tips

  • It is your duty, not your builder's, to engage an inspector, therefore be sure to do so after each step to examine your ideal house.
  • Across Australia, labor expenses vary between $50 and $80 per hour, depending on the region. Labor costs in Sydney are $58 per hour, whereas they are $80 in Western Australia.
  • Additionally, the size of your house affects the total cost. The larger the structure, the more materials will be required.
  • The cost will also be determined by the quality of the materials
  • The cost of constructing an average-sized house in Australia varies from $271,000 to $1,124,550.


Things to Know Before Building a Home

  • When buying a lot, consider key factors such as security, proximity to churches, schools, hospitals, and shopping centers, since they may affect the value of your house if you decide to sell it in the future.
  • Before beginning, create a budget that includes labor expenses, material prices, down payments, and other fees. Adhere to that budget to save money on home construction.
  • Choose the appropriate contractor by examining their qualifications, previous work, price structure, method of home construction, and communication style since you will be working with them for an extended period.
  • Owners must further examine the Australian codes, which address concerns like efficiency and sustainability, health and safety, and structural adequacy, among others; ensure that you adhere to them to prevent difficulties.
  • Having detailed blueprints will streamline your house building process, saving you time and money.

Without further ado, let us get into some details.



The most important step you can do is to create a plan. However, planning contains much more than plans and development tools. It entails establishing realistic timelines, the appropriate budget, and the appropriate constructor. However, it also entails designing your home's physical orientation.

Planning can assist you in determining the precise location of your house on your lot, its orientation, and any difficulties that may arise owing to the size or dimensions of your lot. In addition, it may assist you in avoiding these difficulties before they become issues.



To plan effectively, invest the time necessary to study all of the variables involved in constructing your own home. This begins with the location of the structure. Before purchasing a lot, research the suburb in which you want to construct. Discover the area's schools, services, and facilities. Investigate local housing patterns and attempt to get an understanding of the local council's development procedures.

This may seem daunting, but selecting the proper constructor can mitigate most of the research load. For instance, Concrete Formwork Sydney has the expertise of constructing and providing quality framework packages across Sydney.



This advice may seem obvious, but meticulous planning may save you a lot of time and money later in your construction adventure. When it comes to house construction, there is no such thing as being too prepared. Start by compiling a list of must-haves and designating them as non-negotiables.

When it comes to budgeting, the first step is to agree on a maximum spend amount, which you should not be hesitant to discuss with your sales consultant. Contrary to popular belief, sharing your budget does not result in a price rise.

Keep in mind that once your new house is completed, extra money may be needed for things not included in a normal construction contract, such as landscaping, fencing, and blinds, which may cost between $20,000 and $50,000 depending on the location.



Knowing your budget ensures that you avoid unpleasant surprises. Remember that you will almost certainly need to account for expenses like stamp duty, planning and permission fees, settlement fees, and other related costs. Therefore, it is unquestionably preferable to over-budget than to under-budget. Choosing a builder that is not upfront about its prices is one issue that may drastically affect your budget.



Please read the contract carefully with your builder to ensure you understand its contents. Ensure that you are not taken aback by what the building expenses cover and what they do not.

Make sure that the contract includes a cooling-off period and that the construction schedule meets your requirements. Verify that it has comprehensive plans, warranty, and insurance information. Also, keep a careful eye on the payment schedule.

Finally, it is prudent to have a solicitor review the deal before signing. Remove any blank areas and ensure that any contract modifications are properly recorded and mutually agreed upon.


The Land's Costs

When determining the cost of building a home in Australia, the first factor to consider is the land cost on which the house will be built, which varies significantly by state.

According to The Urban Development Institute of Australia's 2021 State of the Land report, the median lot price in Sydney was $495,000 in 2020, $319,000 in Melbourne, and $183,460 in Adelaide.

Sydney's average land cost was $1285 per square meter, Melbourne's average was $819 per square meter, and Adelaide's average was $400 per square meter.


Overall Costs

Numerous variables affect the cost of construction. However, the Australian Bureau of Statistics (ABS) stated that the average price per square meter was $1393.55 in early 2020.

This amount, however, excludes design, planning permissions, site work, and cost overruns.

According to the Australian Bureau of Statistics (ABS) statistics, the typical home in Australia measures 229.8 square meters, which equates to a construction cost of $320,238.

The cost of constructing an aesthetically planned home begins at $3000 per square meter. However, it may reach $5382 per square meter or $50,000 per Australian house square meter (9.29sqm).

Also, if you want to make your home future-proof, consider making your home weather-resistant, which can cost some more.


How Has Covid-19 Affected the Cost of Home Construction?

While it is difficult to quantify the effect of COVID-19 on the cost of constructing a home, it is fair to say that with so many modifications, border closures, and limitations, the landscape has shifted.

With fluctuating currency rates, affected supply chains, and lower productivity due to COVID-19 limitations, several projects have taken longer to complete, implying an increase in construction costs.


What is the Best Way to Build a House in Sydney, Australia?

After you have acquired a lot, obtained a construction loan, decided on a house design with your architect, have chosen a contractor, signed a contract with them, and obtained permission from your local government, you can start the journey of building your home. If you want to be an owner-builder, you will be in charge of the whole process.

Excavation contractors arrive at this stage and begin excavating, leveling, and grading the construction site. A certifier then inspects the site before the concrete contractor pouring concrete. Once the project has been certified, formwork, footing drains, slab foam board insulation, steel reinforcement, gravel base, and concrete layer are completed. For a two-story structure, another examination will be performed before pouring the second concrete slab.

The second part of your house construction adventure starts at this point; contractors begin creating the structural supports, including walls, roof frames, insulation, and wiring. At this point, a second examination of the property is conducted.

The third and final step will include the contractors painting the walls, installing tile or wood floors, cabinets, air conditioning, and security systems, among other things. After that, the property is examined for the last time. Once certification is complete, money is sent to the contractors, and the builder then relinquishes control.



There is a lot to do to make your newly constructed house a reality, from planning to budgeting, from research to selecting the appropriate contractors. The sooner you begin, the sooner you will be able to move into your custom-made house. You may begin planning and doing research while still saving for your deposit.