Hidden Costs of Building a House in Australia in 2021
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- เผยแพร่เมื่อ 3 ก.ค. 2024
- Ahoy! I’m Tian and I'm breaking down the 7 biggest hidden costs of building a house in Australia. There are many (many!) more costs involved but these 7, in my opinion, can amount to a decent chunk that you may have not accounted for in your budget.
The hidden costs of building a house in Australia are below, in no particular order:
1) Lenders Mortgage Insurance (LMI)
2) Site works
3) Construction Conditions (dependent on your location)
4) Variation Costs
5) Landscaping
6) Pre-start
7) Third-party building inspector
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Intro music: Matthew Nunes
It's refreshing to hear these things explained so clearly, It's a mind field doing research to find all the hidden costs.
I'm so glad you found this information useful! I definitely had a hard time doing my own research so I'm happy to have been able to help :)
A lot of people are better off just paying the LMI rather than trying to save the 20% while house prices just keeping going up and up.
Spot on!
Yep or the first deposit home scheme
especially if you're renting. I'd rather pay LMI and be in my own home quicker
@@Thewoodlandnest Me too
This is 11 min very well spent for any new build. Excellent summary; sifts through mountains of info to deliver the essentials. Thanks Tian.
Appreciate the comment!! So glad you found the info useful.
The microphone settings you used was absolutely incredible. I took my headphones and checked twice if the sound was on loudspeaker, you got me there 😂
Thanks for sharing! Appreciate the effort you put in this video!
This is super helpful! So many things I would never have thought about
So glad you think so 😊
Great content, thank you so much for breaking it down!
Thanks so much Tom. I'm so glad I could help in some way! Are there any other things that you would like to know about? I'm compiling a list of other things first home buyers might like to know for future videos.
I know all too well about variation fees... I realised having the door swing into the garage chews up valuable parking space, they tried to charge me $1000 just to change the way it swung keeping in mind the build hadn’t even started lol
We managed to settle in $500 for that change but still what a rip
I've been working with various builders over the years, and I know for a fact that this is not as simple a change as many people think it is.
When you change a door to swing the other way, a lot of drawings will have to be changed (every single drawing that shows that door), which can take anywhere between an hour and 4 hours. And the estimator should verify if there are any other costs involved. The carpentry purchase order will have to be retracted and re-issued, the material order to be amended to suit the new door handle. And any other trades that have a direct relation with that change. And the admin fee in pricing the variation. Drafting it and sending it to you. Along with carrying the risk of the tradesperson, inspire of all these, using an old improper set of drawings that will have to be changed once identified. The carpentry part will be the carpenter's responsibility, but the builder will need to bring the painter back in to re-paint the jamb, etc.
$1000 may be a rip-off for the change. But $500 is a well justified change in my opinion.
One of the most time consuming aspect in the design office is the variations quickly adding up. We have a client who keeps changing their mind every other day, and our designers spent over 40 hours making those changes. Not all at once, but in a span of 30 days. At this point, the designers were confused as hell as to what change is most current on some of the items. The estimators spent over 8 hours, and the tradespeople start whining about the constant retracting and reissuing purchase orders.
So, builders actually charge more to deter people from raising changes.
One of the most honest review and explanation.
To the point.
Beauty with brain
Wow... this is such great advice and insight I myself would have never thought! My sister is in the midst of building her forever home so I will definitely be recommending this channel for some tips.
Thanks so much Ramona 😊👌
thanks for the helpful information, I'm still considering between building our own or just buying. Good on you and all the best for your new home!
Thanks so much!! And good luck with whatever you decide to do :)
Biggest tip I would give when building ..keep it simple don't try and re-invent the wheel.
You got my attention on the quote "A closed mouth does not get fed.". I'm keeping that one
Really helpful video, cheers Tian!
Thanks Tatum!
I was telling my friend that in Australia everything is hidden, as in the price of a product is NOT fully disclosed upfront from the beginning... it's a breakdown of costs even when you are buying a car!
Thank you so much this helps a lot as me and hubby have just bought our land and will startbuilding soon! ✨
Yay I'm so glad! Thanks for the feedba 😁 good luck with the build
Great pointers, thank you
Great video, thanks!
thats very valuable information, thanks for sharing..
Great stuff ,really helped
Cheers🙂👍
Great video. Very insightful.
Yay - thanks
Full of information ℹ️👍🏻
I wish I saw this video before signing the contract to build 😫😫😫 I did not know I was able to negotiate. This video is very good for people like me who does not understand how building a house works and hidden cost.
Hi Tian, If you really want freedom and the ability to make changes on the fly, be an owner-builder! I understand this may not be an option if you can't secure a loan (line of credit). Also, an inspector to see the build through from start to finish is a better option. Whilst it may be more expensive, it will be worth it it in the long run. You'll be surprised with what builders and some of their sub-contractors will try and get away with to save a few dollars. Sure the final inspection is important as you want things to "look" right, but making sure things like the slab, foundations / footings are right will have a big difference in the years to come. Great video and stay feisty! :)
And guys 100% get the building inspector!!! Especially with the Frame stage!
Hey everyone! Thanks for your support and feedback on my videos. I'm happy to announce that I've created a whole handbook covering the PCI meeting that happens before handover. Information on this phase has been highly requested. Based on feedback I wanted to create a resource that has multiple checklists, tips, what to bring to PCI and what to do with your lists. You can check it out here (there is still a free version of this checklist available on my website for those who want to get a bit of a taste of the checklist beforehand): tiantalks.com/product/practical-completion-inspection-pci-handbook/
Hi, Can you please reshare this? I cannot access this link. :(
Thanks so much!
Very informative! 😁
Thanks Tuesday
Here in the USA, a building inspect is required by law through out the entire building process and we don’t have to pay for it. Well, maybe we pay for it in taxes.
great video ......awesome content
Thanks so much!!
Masterton charges $1000 for variation of color selection, $3500 for floorplan change even a tiny change like the side of the door.
Can you pls break down the approximate costs?
By the time you save that 20% + stamp duty say in a year or 5 (if you are lucky), expect it to actually be just about 12 or 15% when you think you have saved enough. Realestate costs in Australia are bloating on a daily basis.
Yes just pay the LMI which might be 20k. Better than trying to save another 50k.
@@robertturnip7850 did exactly that ha ha.
@@SAMDYZD Same
honest opinion needed!!
House or Apartment?
if House: Build or Buy?
which is more worth it and profitable and which is a waste of money?
Hi Michael, apartments were never an option for my partner and I simply because it does not suit our lifestyle. We always wanted a backyard, a more private space and a piece of land to call our own essentially. I think weighing up which is a better financial investment for you will take more factors into consideration so lots more research will need to be done :) Location, access to transport, schools and amenities will always come into consideration with the value of a property. Good luck with your search!!
my advice is add another 50k to any advertised price you've seen, that price is an empty shell floating in the sky and be prepared to wait up to 2 years before you move in.
100% correct, that advertised price you get absolutely nothing luxury other than what they include, sometimes this can be mislead also. Whenever I ask a rep how much does this display home cost they always seem to have no clue, or they would say "This house was specially designed this way by interior designers" In other words your not getting this standard
Variation fees are fair enough. People sometimes don't realise small changes that owners want cost the trades extra time and money but most owners don't realise this.
what are the best suburbs to buy/build in perth for a young family with some good schools
Hello Tian,
Wanna know if building Chinese prefab homes would be granted a permit in WA or QLD or any state in Australia?
They make it hard these days too many things to sort out .
Include more luxurious finishes as 'standard' but their base price is higher at the same time.
Hi Tian, just have a question about the variation cost. Is it legal for the building company to charge the variation cost if the building owner hasn't signed the contract?
If contracts haven't been signed yet you should only be charged for the cost of the addition itself, not a variation cost. With my build, I tried to make sure I was happy with everything and made quite a few changes before signing the contracts so that I could avoid variation costs.
What about buying in geroalton?
Do you mean Geraldton, WA? I would recommend doing some research on the area first. And it also depends on if you're looking to build to live in it or to rent out. Looking at things like school zones, access to public transport, facilities and shops nearby are all factors to consider. Good luck with the research :)
I wish I knew these things before my partner and I started our build. We’ve been hit with a lot of extra costs that we don’t fully understand so we don’t question it, so thanks for explaining!
You're welcome!! 😊
Me and my partner are saving for a house and land package with coral homes both first home buyers need about 35k for a 5% deposit does the first home buyers grant help much
Thankyou for this video :)
I am about to build in Chittering on 5acres this year. Great tips
Brilliant, siteworks are my biggest worry and BAL and Wind rating
Oh wow, 5 acres 😍 that is amazing!! Ah yes, I have a friend that is building on a similar sized piece of land and site works is the biggest stinger for him! The driveway alone leading to the house will be costing a small fortune since his property is at the very back of the block.
@@TianSisak thankyou :)
Mine is a 5acre bush block, luckily for me the power, phone line/internet(connected at the gate ready) firebreaks/fencing, building pad 2000sqm and driveway is already cleared ready to build on. This will save me bucket loads im told. I am still alittle worried about the site works though, like you say in your videos, things never go to plan, have allowed for this :) cannot wait hey, its a beautiful area. I previously rented in Lower Chittering to get a feel for everything and feel in love with the lifestyle
You have a beautiful house, my god its a two story! When i commented on this video i had only watched your first video, then i watched the other two.
Looking forward to your next one :) congratulations on you and your mans build. Great effort 🎆🎉🎉💥
So lucky that those bigger ticket site works items have been done already!! Ahh well, you are doing the right thing - budgeting a little extra just in case you need it. Better to be prepared for unexpected things (expecially in the site works phase) rather than to underbudget and be left with a bigger mortgage than expected.
Aw, thank you very much. We are very proud of our first home 😊 will also be putting together a little house tour vid soon too!!! So exciting finally being in the house that we've waited so long for.
Am about to build mine gee theres alot headache
Could you possibly turn down the volume of your intro music? When I clicked on your video, both my cats, who were asleep nearby, jumped and almost hit the ceiling! And so did I!
They give u warrenty so no need of building inspector
Beautiful eyes and face, good advice thank you.
WOW. Builders are such scammers. How dare they make you pay for a variation to agreed upon plans
Hi Tian Sisak, Thank you for the information. I am going to build a house in Perth. Are you available to have a chat? Thank you.
Hi Melody! Feel free to reach out to me via my email, tiansisak@gmail.com.
The biggest cost you don't know about is the risk to your safety and the overall economy as WA builders are sending the Architectural plans to be drawn overseas in the Philippines for a tiny price by people who are not qualified or certified to design and produce working drawings to Australian standards!! Companies like Vnix. Look them up they even display the Filipinos on their website under "Our Team"!!! The Australian Government is supplying tax payers money in the hundreds of millions to support an "economic response to corona virus". This money is supposed to create Jobs in Australia for Australians.... instead the money is being miss directed to the Philippines to employ unqualified people to draw plans for builders at a fraction of the cost, while builders are making a fortune out of this current housing boom!!!!! You the customer are NOT getting the quality you should expect from an Australian builder. Demand your plans are produced by a qualified Australian draftsperson!