Top 3 Things Buyers Don't Consider When Building a New Home

16th June 2025

Finance & Budgeting Pre-Construction Legal & Contracts First Home Buyer

Many home buyers overlook key costs and design decisions when building a new home. In this episode, Colin and Darren reveal the top three things people forget to consider – from budgeting surprises to poor floorplan choices – and how to avoid them.

Top 3 Things Buyers Don't Consider When Building a New Home

Building a new home is an exciting journey, but many first-time buyers and even experienced investors miss a few crucial steps that can cost them time, money and long-term satisfaction. In this article, based on Episode 102 of the Home Building Hub Podcast, Colin Bischof and Darren Brennan revisit the most common oversights they see from buyers. Updated for 2025, this guide is a must-read before you finalise your home design or contract.

1. Budgeting for Unknown or Unforeseen Costs

Many buyers get caught out by unexpected expenses that go beyond the headline build price.

Key cost areas often overlooked include:

• Deposits – Some land developers require a 10% deposit, even if your lender covers 95% of the loan.

• Stamp duty & conveyancing – Only some buyers are exempt, and these fees can quickly add up.

• Lenders mortgage insurance – Kicks in for loans above 80% LVR unless eligible for government schemes.

• Site costs – Rock removal, reestablishment surveys, or block clearing aren’t always included.

• Landscaping & fencing – Budget around $10K-$12K for landscaping and around $3K to $6K for fencing (halfshare).

• Window coverings & letterbox – Often not in your quote, adding another $2K to $5K.

• Utility connections & temporary electricity – Can cost several thousand depending on the builder.

• Independent building inspections – Around $800 to $1,000 per inspection.

• Retaining walls – Especially common with turnkey packages and sloping blocks. Costs range from $5K to $15K+.

Tip: Ask your builder for a list of exclusions, not just inclusions.

2. Understanding Your Exclusions as Much as Your Inclusions

It’s easy to get swept up in floorplans and display home finishes, but you need to know exactly what is not included.

Common exclusions include:

• Driveways and porch concrete

• TV antennas, clotheslines, letterboxes

• Toilet roll holders or towel rails (with some builders)

• Retaining walls

• Landscaping or turf

• Site-specific requirements like sewer tie-ins or easement conditions

Darren and Colin highlight that a good builder isn’t hiding these items, but you need to actively ask. If you don’t, you may end up spending tens of thousands post-handover or delay moving in.

Always ask: What am I expected to finish after handover?

3. Neglecting Important Design and Floorplan Decisions

Your future comfort and energy efficiency depend on early design decisions that are often underestimated.

Key areas to pay attention to:

• Orientation – Where is your north point? Living areas should ideally capture afternoon sun.

• Energy efficiency – Incorrect orientation can result in extra costs to meet 7-star energy ratings (e.g. double glazing or extra insulation).

• Electrical layout – Think about:

• • Powerpoint placement (e.g. in pantries, broom cupboards, vanities)

  • Downlight quantity and locations

  • Height of switches and sockets

• Structural changes – Often reduce living space and hurt resale potential. Builders have standard floorplans designed by professionals for a reason.

• Measure it out – Physically map out changes before signing off. Don’t trust guesses or what Uncle Gary suggests.

*As Colin says, "You might save a few dollars, but at what cost to your liveability and resale?"

Key Takeaways

• Budget beyond the base price: include land deposits, connection costs, and landscaping.

• Understand what’s not included in your build contract to avoid surprises.

• Prioritise practical, energy-efficient floorplans over cosmetic tweaks.

• Walk through a display or measure it out – don’t leave it to guesswork.

• Rely on experienced professionals over well-meaning family opinions.

Glossary

• Turnkey: A fully finished home ready to move in, including landscaping, blinds, etc.

• Easement: A reserved section of land for utilities like sewer or drainage.

• Reestablishment Survey: Verifies land boundary pegs before construction.

• Orientation: The positioning of your house in relation to the sun.

• 7-Star Rating: An energy efficiency rating under the Nationwide House Energy Rating Scheme (NatHERS).

Frequently Asked Questions

Do I really need to pay for site costs if the builder has a fixed price? It depends. Some builders allow for known costs like rock removal. Others will charge if unexpected issues arise. Always confirm the details.

What if I want to DIY landscaping? It’s possible, but you’ll need time, tools and patience. You may also risk delays in rental income if you’re an investor.

Should I worry about house orientation? Yes – it affects natural light, energy costs and even your builder’s compliance with energy ratings.

Can I customise the floorplan? Yes, but think carefully. Over-customising can make spaces impractical and reduce resale value. Always check with your design consultant.

Listen to the Full Episode

🎧 Click here to listen or watch Episode 102 – Top 3 things buyers don't consider when building

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.