Australia: Renovation, Restoration & Building

Overview

Building a new home or having a new home built is common in Australia and usually takes from four to 12 months. It’s generally cheaper and better to have a new home built than to buy and renovate an older home, as you don’t need to make compromises for old building standards and the existing dimensions or plot restrictions. You also don’t need to match new work to old or make good any damage to existing structures. New homes are generally built to a much higher standard than older homes. However, building code performances, the introduction of GST in 2000 and new regulations for insurance have led to a sharp increase in the price of building materials and therefore the cost of a new home.

Many Australians design and even build their own homes and, if you’re up to it, you can do much of the work yourself, although plumbing and electrical work can be done only by qualified tradesmen. Building a home isn’t for the faint-hearted, as it’s fraught with problems. Alternatively, you can buy a plot and hire a builder or purchase a plot from a builder/developer with exclusive rights to develop a particular estate (called project or estate homes). Builders’ project homes are popular and cheaper than building a home to your own design or having it designed and built by an architect, and land plus house packages are cost effective. All builders maintain show homes which can usually be visited without an appointment at weekends. The cost per square metre of building a home depends on the type of construction and the location; the following costs are for homes in an average location.

Fibre cement prices are subject to demand. Brick veneer is the most popular, while full brick is reserved for luxury homes; weatherboard and fibre cement are rarely used nowadays. Timber cladding is popular in some cities, e.g. Brisbane. Note that the quality of fixtures and fittings used makes a huge difference to the price.

The cost of land varies considerably depending on the city or region and the distance from a city centre. For example, a plot around 8 to 15km/5 to 9mi from Sydney centre costs at least $425,000, while a similar plot in Perth costs from around $100,000. Plots over 30km/19mi from city centres range from a high of around $140,000 in Sydney to around $50,000 in Adelaide and Perth. Most land and property in Australia is owned freehold, the only exception being the Australian Capital Territory (ACT), where most land is sold on a 99-year lease (after 99 years, leases must be re-applied for).

New properties built by a professional builder are always covered by a warranty, and most lenders won’t make a loan on a new house without one. A standard contract for a new home usually provides that the builder rectifies any defects notified by the purchaser for a limited period, e.g. three months. It’s important to choose your builder carefully, as building disputes are common and it can be expensive if you need to seek legal redress.

© Survival Books Limited 2006

“Buying a Home in Australia & New Zealand” 1st Edition, Graeme Chesters.
Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Australia & New Zealand” 1st edition, by Graeme Chesters.

For extensive information about buying a property in Australia & New Zealand, you can purchase this book at www.survivalbooks.net