Blog How much does it cost to build your own house

How much does it cost to build your own house

14 May 2017
How much does it cost to build your own house

Are you planning on building a home or an investment property? Whatever your plan, a key element underpinning the decision will be the cost. We all want to build a house at an affordable price without sacrificing quality.

The cost of building a house can vary widely because there many variables that need to be considered such as:

  • Land: The kind of land will be a huge factor in determining how much it will cost to build a house. Builders will need to inspect the block to see if your land is flat or sloping. If your land is perfectly flat there will be no additional cost involved, but if it’s sloping the extra cost to build typically ranges from $6,000 to $9,000/metre.
  • Location: Each state and territory has its own regulations so there will be varied rates of taxes, insurance and fees.
  • Builders/Architecture: The rate will vary depending on who will be building your house. On average, a floor plan drawn up by an architect will cost around $5,000 to $6,000.
  • Materials used: The kinds of material used will have a great impact on the cost. This includes the foundations, walls and roof.
  • Size of the house: The size of the house, in particular the number of bedrooms and bathrooms, will also effect the cost.  
  • Number of storeys: A larger house is more costly since more paint, more floors, and more fixtures are needed. A two-storey house can start from $290,000 while a single-storey can start from $190,000.

According to the Housing Industry Association, the average size of houses in Australia is 243sqm and the estimated median price of building a house is under $300,000, or an average of $1,183 per sqm, excluding design, planning, and permits.

If you’re building an architecturally-designed home, prices start at $2,152 per sqm.

To get a rough estimate of how much it will cost per square metre when building a house in a capital city, here’s some data from Rider’s Digest 2016 Melbourne, Australia Edition:


Cost range per floor area ($/m 2) - Low

Cost range per floor area ($/m2) - High






















Regardless of the cost, a construction loan is a common financing choice when building a new house. Construction loans are drawn down as the builder completes each stage of the home. Visit our construction loans page to find out more about these loans and find out your borrowing power.