Building a home in Australia in 2024 comes with its challenges, especially with rising interest rates and housing prices. As costs soar and wages lag, many Australians are seeking alternative ways to build their dream homes affordably.
1. Get Distance From the Cities
While bustling cities like Melbourne, Sydney, and Canberra have their charm, they also come with hefty price tags.
According to the latest UDIA ‘State of the Land’ 2024 report, the median housing prices in Sydney have continued to increase, with a notable rise of 7.4% year-on-year for all capital city dwellings.
The median price for capital city houses in Sydney is now $1,441,957, which represents an 8.2% increase from the previous year
To find more affordable options, consider exploring suburbs and regional areas with lower median housing prices.
For instance, Adelaide and Perth offer more budget-friendly choices.
- Adelaide’s housing prices have remained relatively stable, with the average house price being around $757,448 in 2024.
- Meanwhile, in Perth, the median house price has risen, with average building costs ranging from $1,400 to $2,700 per square metre, making it a more affordable option compared to Sydney.
Moving away from densely populated areas not only saves you money but also offers better value for your investment. For those looking to rent while building, Perth also has cheap rental options.
2. Choose the Right Lot of Land
Choosing the right lot of land is crucial to keeping your home-building costs down. Here are some key considerations to keep in mind:
- Slope and Topography: Land that is not level can significantly increase your building costs. Levelling and grading an uneven plot can add around $2,500 to your expenses before construction even starts. Opt for a plot with a gentle slope or flat terrain to minimize these costs.
- Soil Quality: The type of soil on your land affects the stability and cost of your foundation. Level bedrock is ideal due to its sturdiness, but sandy soil can also be manageable. Avoid clay-heavy or unstable soils, which can require expensive foundation solutions.
- Utilities Access: Ensure the land has access to essential utilities such as water, electricity, and sewage systems. Setting up these utilities from scratch can be costly and time-consuming. Prioritising blocks of land that already have these services in place can save you a significant amount of money.
- Local Building Codes and Regulations: Familiarize yourself with local building codes and state laws. Each region has specific regulations that must be adhered to, including environmental protections and zoning laws. Land that already complies with these regulations can save you the hassle and expense of making adjustments later on.
- Site Restrictions: Be aware of any site restrictions that might affect your building plans. These can include easements, flood zones, or heritage overlays. Understanding these restrictions beforehand can prevent unexpected costs and delays during the building process.
For more tips on reducing building costs, read our article on ways to reduce costs when building a new home.
3. Be Realistic About What You Need
When building your own home, it’s easy to get carried away with grand designs and luxurious finishes. However, staying within your budget is crucial to avoid financial stress. Here are some practical tips to help you keep costs down:
- Prioritize Essential Features: Focus on what you truly need in your home. Avoid adding unnecessary features that can significantly increase costs. For instance, a simple, functional layout is often more cost-effective than complex architectural designs.
- Opt for Simple Designs: Two-story homes and intricate layouts can be expensive. Instead, choose a single-story home with a straightforward floor plan. This approach not only saves on construction costs but also makes future maintenance easier and more affordable.
- Select Cost-Effective Materials: Choose materials that offer a good balance between quality and cost. For example, concrete flooring and exposed brick walls are durable and stylish options that don’t break the bank. Avoid splurging on high-end finishes and fittings initially; you can always upgrade later.
- Consider Prefabricated Homes: Prefabricated homes and kit homes are excellent options for keeping construction costs low. These homes are designed by experts and can be assembled quickly, reducing labour costs. For more information on this, check out our guide on modular prefabricated home prices in Perth.
- Plan for the Future: Think about your long-term needs and how your home can accommodate them. For instance, if you plan to expand your family, consider designs that allow for easy additions in the future. This foresight can save you from costly renovations later on.
- Stick to Your Budget: Create a detailed budget that includes all potential costs, from land purchase to final finishes. Monitor your expenses closely and avoid making impulsive changes to the plan. Staying disciplined with your budget ensures you don’t overspend.
For more detailed advice on managing your budget and reducing building costs, explore our article on the pros and cons of building new.
4. Consider a Prefabricated Home or a Kit Home
Prefabricated and kit homes are becoming increasingly popular as affordable and efficient options for home building. These homes offer a range of benefits, from cost savings to faster construction times. Here’s what you need to know:
Prefabricated, Modular, or Kit Homes
Prefabricated homes are built in sections in a factory and then transported to the building site for assembly. Modular homes are a type of prefabricated home where entire sections or modules are constructed off-site and then joined together on-site.
Kit homes involve pre-cut and pre-measured materials that are delivered to your site and assembled there.
These options offer significant cost savings because the bulk of the construction is done in a controlled factory environment, reducing labour costs and material waste. Additionally, the streamlined process can significantly shorten the construction timeline.
For example, a 3-bedroom kit home can cost around $100,000 to $200,000 making it possible to build a home for under $200,000.
To get a better idea of the costs and options available, check out our detailed guide on modular prefabricated home prices in Perth.
Shipping Container Homes
Shipping container homes are another innovative and cost-effective option. These homes are constructed from repurposed steel shipping containers, offering a robust and eco-friendly solution. Here are some key points to consider:
- Cost-Effective: Starting prices for container homes are about $6,000, depending on size and condition. This makes them an affordable option for many home builders.
- Durability: Shipping containers are designed to withstand harsh conditions, making them incredibly durable. With proper insulation and design, they can be transformed into comfortable living spaces.
- Quick Assembly: Container homes can be assembled quickly, reducing labour costs and construction time. However, ensure you check local regulations and obtain the necessary permits before proceeding.
- Design Flexibility: Despite their industrial origins, shipping container homes can be designed to be modern and stylish. With the right interior design, you can create a beautiful and functional living space.
- Eco-Friendly: Using repurposed materials reduces waste and promotes sustainability. Container homes are an excellent choice for environmentally conscious builders.
For more insights into the benefits and challenges of these homes, read our article on the pros and cons of building new.
5. Don’t Splurge on Fittings and Finishes
While building your dream home, it’s easy to get excited about luxurious fittings and high-end finishes. However, keeping your budget in check is essential to avoid unnecessary expenses. Here are some tips to help you make practical and cost-effective choices:
- Opt for Basic Finishes: Choose simple yet classic finishes that are affordable and durable. For example, concrete flooring and exposed brick walls are stylish and cost-effective options. These materials not only look good but also stand the test of time.
- Prioritize Function Over Form: Focus on essential features that add value to your home without breaking the bank. Functional elements like energy-efficient windows and doors can save you money in the long run through lower utility bills.
- DIY Where Possible: Consider doing some of the finishing work yourself if you have the skills. Painting walls, installing fixtures, or laying flooring can save you significant labour costs. Just make sure you’re confident in your abilities to avoid costly mistakes.
- Use Reclaimed Materials: Incorporate reclaimed or recycled materials into your home design. These materials can add character to your home and are often cheaper than new ones. For instance, reclaimed wood can be used for flooring, beams, or accent walls.
- Shop Smart: Look for sales, discounts, and clearance items when shopping for fixtures and finishes. You can often find high-quality materials at a fraction of the cost. Additionally, buying in bulk can save money on larger projects.
- Future Upgrades: Remember that you don’t have to complete every aspect of your home immediately. Focus on the essentials first and plan for future upgrades as your budget allows. This approach helps you manage costs and spread out expenses over time.
For more detailed strategies on managing your building budget, explore our article on ways to reduce costs when building a new home.
How Much Does It Cost to Build a House in 2024?
Understanding the cost of building a house in 2024 is crucial for planning your budget effectively. The average cost to build a new home in Australia ranges from $1,500 to $3,000 per square metre, with total costs varying between $225,000 and $500,000.
These figures can fluctuate based on location, size, design, and material choices. For instance, if you are building in Melbourne, the expenses might differ.
For a detailed understanding of these variances, the Cost to Build a House in Melbourne guide provides comprehensive insights, helping prospective homeowners budget accurately.
Here’s a breakdown of the average cost to build a home in different states of Australia for 2024:
| State | Average Cost of Building a House In 2024 |
|---|---|
| New South Wales | $350,000 to $500,000 |
| Victoria | $300,000 to $450,000 |
| Queensland | $250,000 to $400,000 |
| South Australia | $300,000 to $450,000 |
| Western Australia | $320,000 to $450,000 |
| Tasmania | $220,000 to $400,000 |
| Northern Territory | $400,000 to $500,000 |
| Australian Capital Territory | $400,000 to $500,000 |
These costs are influenced by several factors:
- Location: Building costs can vary significantly from state to state and even within different regions of the same state.
- Size of the House: Larger homes naturally cost more due to the increased amount of materials and labour required.
- Design: Custom designs and complex architectural features can increase costs.
- Materials: The choice of building materials, from basic to premium, can significantly impact the overall cost.
- Labour: Labour costs can vary based on the availability of skilled workers and the complexity of the construction.
Having a clear understanding of these average costs provides valuable insights and empowers you to make informed decisions when planning your new home.
For more detailed strategies on managing your building budget and reducing costs, explore our article on ways to reduce costs when building a new home.
Look Out for Government Grants
Government grants, like the HomeBuilder grant, can help offset the cost of building a home. Keep an eye out for similar opportunities in the future to take advantage of financial aid that may be available.
Ensure you meet the eligibility criteria, such as being an Australian citizen and an owner-occupier, to benefit from these programs.
To qualify, you must:
- Be the owner-occupier. This rules out investment properties.
- Not be a company or trust, but a natural person
- Be an Australian citizen
- Have an income of $125,000 or less a year (singles) or less than $200,000 per year (couples). This amount will be according to your last tax return.
Conclusion
Building a home in Australia in 2024 requires careful planning and smart choices to keep costs down. By choosing the right location, being realistic about your needs, and considering prefabricated or kit homes, you can achieve your dream home without overspending.
Keep an eye out for government grants and avoid splurging on unnecessary finishes to stay within your budget. For more insights, check out the pros and cons of building new.
DID YOU KNOW you get closer to finding your dream home when you swipe and shortlist? Our algorithm learns what you like and sends you better properties.
So get registered here. But don’t just stop there, download our app to get the full Soho experience. Just remember to shortlist or swipe left on our listings so we can send you others that better match what you’re looking for.
FAQ Section on ‘Cheap Ways to Build a House’
What is the cheapest way to build a house in Australia?
To minimize construction costs, consider building on a level piece of land. This reduces the need for extensive excavation and landscaping, which can significantly increase costs. Avoid adding a basement as it requires additional digging and construction, adding to the expense.
What is the cheapest style of house to build?
The most cost-effective styles of houses include pole barn houses and barndominiums, costing approximately $50 to $160 per square foot. Other budget-friendly options include modular homes, tiny homes, shipping container homes, and simple one-story ranch homes.
Is it cheaper to build or buy a home in Australia?
Building a home in Australia tends to be more cost-effective than buying, especially in the current complex housing market. This can vary based on location, materials, and the design of the home.
What is the cheapest building material in Australia?
The most affordable building materials in Australia include concrete blocks and steel framing. Concrete blocks offer durability and fire resistance at a low cost, while steel framing provides strength and is light-weight, making it a cost-efficient option.
