How Much Does It Cost To Build A House?

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If you are looking at buying land to build your own home or an investment you will need to know how much it costs to build a house so you can accurately do your figures. House prices vary significantly depending on what type of house you want to build and which builder/company you decide to go with.

Myself and my wife were just about to purchase a block of land and thus we have been doing these calculations ourselves and speaking to a many different people and companies to get an idea of how much it will cost us to build a 3 or 4 bedroom home.


pricelist-nov-2015See real prices
Grab your free copy of the
Price List For New Build Houses.

[/su_note] Or view my more detailed post about how much it costs to build a house

How Cheaply Can I Build A House For?

For those wanting to get into the market, or just building an investment, you may want to know how cheaply you can build a house for. This is definitely a question we were asking. I wanted to know whether we could afford financing for building a cheap home first. If we could afford financing then we would work our way up to what we could afford from there.

The cheapest contract for a build we were able to find was $125,000 for a modest (and not flashy) 3 bedroom home. However, you also need to add site costs (anywhere from $10,000 to $70,000….but averaging around $20,000), BASIX costs ($10,000 approximately) and Flooring/Driveway ($10,000). So basically we needed to add $40,000 in costs to whatever company we went with.

Thus the cheapest we could likely build a house for would be $165,000

Other Costs You Need To Take Into Account When Building A Home

Soil – The above cost was based on a building site with excellent soil conditions (they call this M classification). If the soil is rocky, clay-like, or has any other problems then that is how the site costs can get upwards of the $20,000 mark.

Slope – Having a sloping block also add a cost to the build. When speaking with one building company they were estimating that for every 1 metre of fall you have on your block you are likely to pay an extra $6,000. If that slope is sideways across the block then it is more likely to be an extra $9,000. So just 3 metres of fall on your block (not a huge amount) could add anywhere from $18,000 to $27,000 to the overall cost.

This does not cover all the extra costs. For more elaboration please view our hidden extra costs to building a house.

Building A 4/5 Bedroom Or A More Luxurious House

If you want to add an extra bedroom to a home then that is going to come at an extra cost. You also need to take into account that the expectation for a 4 bedroom home is 2 bathrooms (and sometimes two living areas) so that will increase your costs even further.

The extra cost depends on which company you go with. With some larger building companies you can add an ensuite for just under $10,000 and you can add an extra lounge room and extend the decked area outside for another $10,000.

It really just depends on your layout as to what will work for you and how much it will cost. It is always best to get quotes so that your figures are accurate.

Building Your Property With A Builder

If you are going to build with a builder instead of a pre-packed/pre-designed home then you are going to incur some extra costs. House design is one cost, especially if you need to go to an architect to get it completed. Plus then you would need to obtain quotes from builders as each builder will quote differently.

How to Get Building Quotes and Pricing

If you go to Masterdon homes website it is unlikely that they will display pricing. Very few companies actually give you pricing up front available online. However, if you visit one of their display homes and talk with one of the sales reps then you will be able to get a pricing list very easily.

We found it extremely simple to get pricing on the options we were looking at, plus they took the time to discuss the ‘hidden extra costs’ with us so we could really do our budget effectively.   [su_note note_color=”#eff6fe”]

pricelist-nov-2015UPDATE: If you don’t want to visit a display home yet then just download this Price List For New Build Houses.


It will give you a good indication of the costings to get you started

[/su_note] For a formal quote you are going to require a block of land that you either own or are looking to buy, but even with formal quotes there are going to be some variations.

You can only know the exact price once the soil and contour (slope) tests are completed. Even then, if they come up against major difficulties then it may even cost you more money.

To get a quote from a builder simply send them your plans and let them know your plot of land and ask them for a quote on the build.

Can You Afford To Build A New Home?

Currently in NSW there is a stamp duty exemption for people building new homes and you can also access a grant if it is your first home. This makes affording to build a home much easier. Speak to an accountant or property professional about how to obtain these concessions and grants.

After speaking with a mortgage broker I have discovered that there are lenders out there who will lend 95% on a land/construction loan but most would prefer to lend 90% or less. Speak with your mortgage broker about your financing arrangements.

Obviously if you are borrowing more than 80% of the value of the home then you will incur a fee for lender’s mortgage insurance. This is a fee that you pay to the bank (it can usually be added onto your loan) and pays their insurance for taking a bigger risk on your loan.

For the low cost of $165,000 (or around $200,000 if you are looking to add some extra features) you can build a brand new home on your block of land.

Obviously, the more luxurious your home the more expensive it will become. That cost of $165,000 is really a base-line price for a basic home.

The majority of 4 bedroom homes we looked at ranged from $200,000 to $300,000 (plus site costs) and the two story homes were in the higher price bracket (around $300,000).

Many companies will actually calculate their costs based on the square footage of the home. So the larger the home the larger the cost and the smaller the home the smaller the cost. If you have any questions please write them in the comments section below.

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