Building a new home is expensive. But how much will it cost? This article lists some of the most common costs associated with building a new home.
- Land Costs
The first thing you need to consider when buying land is what type of house you want to build. If you plan to live in the property yourself, then you will need to factor in the cost of land plus any stamp duty. You also need to think about whether you want to build a detached house or an apartment block.
- Stamp Duty
Stamp duty is the tax paid by buyers who buy properties worth more than $2 million. It is charged at different rates based on the value of the property. The rate depends on the state where the property is located.
- Building Permits
There are two main types of permits required when building a house. The first type is called a building permit. This is issued by local council authorities and covers things such as planning permission, construction standards, and other requirements. The second type is called an occupation certificate. This is issued by the Department of Housing and Public Works (DH&PW) and covers things such as the completion date of the house and the occupancy of the premises.
- Design Fees
The cost of designing a new house will vary based on the size of the property and the complexity of the design. However, there are some general costs involved in building a new house. These include the following:
- Architectural fees – An architect will need to be hired to draw up plans for the house. Architects typically charge between $500 and $1,000 per hour.
- Planning fees – Local councils usually require a plan before issuing a building permit. You will also need to pay a fee to apply for a building permit.
- Construction fees – Once the plans are approved, builders will start work on the house. They will need to hire subcontractors to complete various aspects of the project. Subcontractors will often charge a percentage of the total cost of the job.
There are many other costs involved in building a house. All this contributes to the increase in the cost of building a house in Australia per square metre.