10 Things People Often Forget When Building a New Home

20th November 2023

Finance & Budgeting Pre-Construction Design & Trends

This article from the Home Building Hub unpacks 10 things buyers often forget - from hidden fees to timing issues with neighbours. Don’t get caught out by overlooked costs and common missteps.

10 Things People Often Forget When Building a New Home

Building a new home is one of the biggest financial and emotional journeys you'll ever go on. But even the most organised buyer can forget important steps along the way. In this episode of the Home Building Hub podcast, Colin and Darren break down the top 10 things people often don’t consider when building their new home. If you're in the early planning stages, this is a must-read (or must-listen) checklist.

1. Deposit Confusion

• You may need to pay two separate deposits: one for land and one for the builder

• Land deposit is typically 10%, while builder deposit totals 5%, often split into an upfront "preliminary fee" and the balance later

• Misunderstanding this can leave you short when it matters most

2. Forgotten Costs in Finance Calculations

• When budgeting your deposit, don’t forget:

• • Stamp duty

  • Conveyancing

  • Land transfer fees

  • Lenders Mortgage Insurance (if applicable)

• These are real costs that can quickly eat into your savings

3. Progress Payments and Cash Flow

• Once land settles, loan repayments begin – even before your build starts

• Builder invoices are issued at key stages (slab, frame, lock-up, etc.)

• Make sure your cash flow or rental commitments can handle the overlap

4. The Importance of a Conveyancer

• Acts as your legal representative during the land settlement process

• Reviews land contract and coordinates with bank and vendor

• Ask them to ensure survey pegs are in place before settlement to avoid expensive re-surveys later

5. Site Clearing is Your Job

• Builders require a clean site before construction begins

• You are responsible for removing rubbish, weeds, excess soil or dumped materials

• Temporary fencing after title can help prevent illegal dumping

6. What is NOT Included in Your Build Quote

• Always ask: "What’s missing from this quote?"

• Common exclusions:

• • Rock removal

  • Fencing and landscaping

  • Costs associated with easements

  • Survey work or re-establishment

7. Fridge Space Oversights

• Double check fridge space dimensions on your floor plan

• Large fridges with water/ice features may not fit standard spaces

• Adjusting cabinetry or removing skirting boards later can be costly

8. Connection Fees and Service Charges

• Electricity, gas, and water bills start as soon as land is settled

• Internet and utility connections often come with fees

• Builders may pass on utility usage during the build to you

9. Building Inspections = Time Extensions

• Hiring a private inspector? Great – but each inspection can trigger a 21-day extension to your build contract

• Consider this impact when planning move-in dates or managing rental overlap

10. Your Neighbours Can Change Everything

• Building delays can lead to:

• • Neighbour’s home affecting your setback requirements

  • Two-storey neighbours overlooking your yard (privacy concerns)

  • Shadowing issues affecting natural light compliance

  • Additional costs for restricted access, underpinning, or smaller design

• Moral: If your land is titled, get your build underway quickly

Key Takeaways

• Building costs go far beyond just the base price

• Time delays, neighbours, and missing information can cause expensive surprises

• Ask your builder what’s NOT included, and always budget for extras

• Progress payments and service fees start earlier than you think

• Get advice early and plan thoroughly to avoid unexpected hurdles

FAQ

Do I really need a conveyancer? Yes. They coordinate the legal side of land settlement and protect your interests in the contract. They also help ensure critical items like survey pegs are addressed.

Can I just clean the block myself? Yes, but it must be done properly. Builders won’t begin work until the site is fully cleared of rubbish and weeds. Consider using services like AirTasker if you need help.

Why do fridge measurements matter so much? Kitchen spaces are often tight. If your fridge is too deep or wide, it could stick out into walkways or block pantry access.

What if I want to use a building inspector? Totally fine, but each visit may extend your contract by up to 21 days to allow the builder to review and rectify items.

Glossary of Terms

Conveyancer: A professional who handles the legal process of transferring land or property ownership.

Settlement: The finalisation of a property purchase where ownership officially changes hands.

Progress Payments: Instalments paid to your builder at different construction stages.

Survey Pegs: Markers that show the legal boundary corners of your land.

Setback: The required distance from the front or sides of your property where building is not allowed.

Listen to the Full Episode

Click here to listen to Episode 32: Things people often 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 http://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.