Hidden Costs of Building a New Home (And How to Avoid Them)

The headline contract sum is what most owners focus on when they sign. The other costs that come along sometimes total another 10 to 12 percent on top. Here is the complete picture.

1. Council development contributions

Section 7.11 fees: $5,000 to $22,000 depending on LGA. Always confirm with the specific council.

2. Driveway crossover

The portion between your property boundary and the kerb. Council-controlled. Typically $3,000 to $8,000.

3. Fencing

Side and rear fencing. Half-share with neighbours but expect $4,000 to $12,000 out of pocket.

4. Landscaping

Basic driveway and grass included. Anything else: $8,000 to $40,000.

5. Custom selection upgrades

Tile, tap, paint, fixture upgrades above standard PC sum allowances. $5,000 to $25,000 typical for an Elite-tier build.

6. Finance costs

Bank fees, valuations, conversion: $4,000 to $8,000.

7. Removalist and storage

$3,000 to $7,000 across the build.

8. Window furnishings and light fittings

Blinds, curtains, pendant lights, designer fittings beyond standard: $5,000 to $20,000.

How to budget properly

Base build contract: 100 percent. Add 5 to 8 percent for council and statutory costs. Add 5 to 7 percent for custom selections and incidentals. Add 5 to 8 percent for contingency variations. Total budget should be approximately 115 to 123 percent of the headline contract sum.