COSTS OF BUILDING A HOME

Put simply, our home is the biggest financial investment of our life!

In addition to it being an important financial investment, it's the place we’ll spend most of our time and the place we’ll make most of our cherished memories.

These buildings are likely to be there for 50-100yrs, in this time we can change the flooring, paint the walls and swap out the curtains but we only really get one shot at getting the design right – and a good design never goes out of fashion!

A question we all ask when embarking on the journey of a new home or renovation:

'how much will it cost?'

Although there is no one size fits all answer to what your project will cost, we are happy to share with you some hot tips to put you on the right path.

KEY PROJECT COSTS

EXAMPLE OF COSTS ACROSS A PROJECT (Note: These will vary project to project)

LAND ( SITE )

This site purchase will typically represent anywhere between 40-60% of total project expenditure. The graphed example above represents a site (land) purchase cost near equal to that of the build cost, shown as 46% of the total project cost in that scenario.

There will also be government fees 'stamp duty' associated with this purchase - these represent ~2% of total project cost (similar to the architect fees).

The property you purchase can impact the costs to develop upon it.

• Flat

  
  

  Generally the easiest, and therefore cheapest site type to build on, however can be limited in the views / aspect (if not waterfront), and can be difficult to find along the Sydney & Central Coast coastline

• Sloping

  
  

  Often offer a nice aspect or spectacular views and can be cheaper land to purchase (comparably), but can add ~20% extra to the build cost (depending on slope severity)

• Beachfront or Waterfront

  
  

  Obviously beautiful, highly sought after locations. Can have additional foundation costs to withstand the effects of variable soils conditions, flooding, erosion – this can vary but can add ~10% to the build price. Marine / salt-water suitable materials may be required on these projects, this could add ~5%.

• Bush Fire Prone

  
  

  Often offer a sense of connection with nature and seclusion, or at least added privacy. If your property is mapped as bush fire prone a bushfire consultant can determine the ‘Bushfire Attack Level’ or BAL. The lower level BALs could add ~5-10% to the build, the upper levels could add ~20%+

• Ecologically sensitive

  
  

  This doesn’t always have a direct cost implication for the build, but may require more considered planning and possibly expert consultant reports at the planning stage. An example may be a requirement to build a certain distance from a significant tree and build your footings in such a way as to not impact the health of the vegetation or habitat.

PROFESSIONAL FEES

• Interior Designer

  
  

As per the graph above, these could represent up to ~1% of total project expenditure.

These can vary substantially based on the input required.

Do they include:

• Meeting/s with client, one or multiple

• Meeting/s at supplier showrooms, one or multiple

• Selections of all Fixtures and Finishes

• Fixtures and Finishes Schedule

• Detailed Drawings of some key areas, or the entire interior of the home (kitchens, bathrooms, ensuites, laundry, joinery, stair details, balustrade details, feature walls, fireplaces etc)

• Architect

Please note FBC Architects quote based on project complexity, not build costs.

As per the graph above, Architect fees may represent around ~2% of total project expenditure. To put this into perspective, this can be the cost of just the windows on a new home project.

A well-designed home will have lower ongoing running costs; enjoy better natural light / warmth, capture favourable breezes, less dependence on active systems such as lighting and A/C to compensate for poor design. There is also an intrinsic value through your experience and enjoyment of the space, you don't want the biggest investment of your life to tick boxes on paper (5 beds, 3 bath...) but be poorly laid out, non site responsive, uninspiring, cold or dark, place to live.

Quality not quantity!

• Consultant & Council

As per the graph above, these fees may represent around ~2% of total project expenditure.

These generally include; Survey, Basix Certificate, Structural / Civil Engineering, Landscape design, Bush Fire report (where necessary), Geotech Report (where necessary), Council & Certifier fees, Long Service Levy.

BUILD COST

These costs may represent around ~40-60% of total project expenditure. The graph above represents a build cost which is near equal to the site (land) purchase cost, represented as 47% in that example.

Below are some items to consider, that have a direct correlation to build cost:

• Size

Every square metre of a build will cost….every length of timber, every litre of paint, every screw! So the best way to manage build costs is to plan efficiently, only include areas you’re likely to use and to a size which is comfortable without being excessive.

Hiring someone who can plan efficiently and at the same time create a beautiful and inspiring space is key to getting the size of the home right, and not design in wasted space.

In our experience most custom homes, built from 2025, tend to fall between $5 - $10k per/sqm of floor space - however, this can vary depending on the other factors discussed in the post.

(Please be wary of anyone that tells you early on that it can be done much cheaper, it is very likely to increase later once real costings come in).

• Construction Type

As a general rule, the lighter weight the build, the cheaper it is. So typically a clad home constructed of a framed (timber or lightweight steel) structure will be cheaper than a heavier constructed home with concrete floors / roof and masonry walls.

There are exceptions to this i.e building a single storey home on level ground using concrete slab on ground and external brick walls may have negligible cost implication vs a framed / clad home on the same site.

Where costs tend to go up is when you start elevating heavy construction, i.e multi-storey builds, particularly on sloping sites, where slabs are suspended above ground requiring larger supporting structure / footings and more material / labour cost.

Possibly a 10-20% cost increase for a suspended concrete / masonry structure, however also a very solid and long lasting construction method.

• Finishes (External and Internal)

The way a home is finished can have a considerable implication on cost, for example you can pick a porcelain tile for $50per/sqm or a natural stone tile for $250per/sqm, apply this across 200sqm and you’ll see a significant cost difference.

If you extrapolate this across every surface of an entire home the numbers can be significant!

Hint: Although this can be a way to reduce costs, if you are needing to reduce costs significantly often the best way is to reduce sq/m from the outset as this can be time consuming and costly exercise once a project is approved and fully documented. It is much better to design efficiently from the outset, or have components you could build later i.e Pool, rather than fundamentally re-designing and re-approving a building.

SUMMARY

There are many factors which affect the cost of building or renovating a home.

In spending this money it is crucial our homes are realising their true potential, and there is real value for money designed into them, not just numbers on paper that equate to little value when it comes to actually living in the space.

Ask yourself, is your home:

• customised to the needs / desires of you, your family, your pets – the things that make you, well...you!

• making the most of the opportunities of the site - favourable views / aspects / sun / breezes

• creating spaces that are functional but equally inspiring - spaces that work efficiently and at the same time uplift you and make you feel better

• comprised of quality spaces that you enjoy and are comfortable in, not vast areas of little use with poor natural light and ventilation (check out ‘sick-building syndrome’) that just feel uncomfortable and uninviting

• a place you love coming home to that re-charges the mind and spirit

These are the often intangible values of a well-designed home, values that are hard to put down as numbers on paper, values that we appreciate above all else when we inhabit a space. These are values that we at FBC Architects lay down on each and every home, without exception - both directors / lead designers are masters degree qualified in Architecture with honours and have 30yrs+ of combined experience.

FBC will deliver you an exceptionally designed home, customised to you, every time.

FBC recommend the advice / input of a reputable local builder &/or quantity surveyor throughout the design & approval process to ensure costs stay on track