Here's a simple example. Say you have $750,000 to spend on a custom new home in Geelong. That sounds like a solid budget. But before a single wall goes up, you're looking at GST, council fees, development application costs, engineering reports, and design documentation. Then there's the actual site — does it slope? That alone can add tens of thousands.
By the time you factor in landscaping, fencing, connection of services, and any luxury items you had your heart set on, your budget might only stretch to a significantly smaller or simpler home than you imagined. That's not me being discouraging — that's just the reality of building, and knowing it upfront puts you in control.
The best thing you can do before talking to anyone about design is get clear on your absolute ceiling — the maximum you cannot go past, no matter what. Then be honest with your builder about it. A good home builder will tell you what's achievable within your budget and where you may need to adjust expectations. That kind of honest conversation early is worth far more than finding out the bad news halfway through a design process you've already paid for.
There's also the question of overcapitalisation — building a home that costs more than the land and house are worth together in your suburb. It's not always a problem, especially if you're building a forever home and don't plan to sell. But it's worth understanding, particularly in growth areas around Geelong where land values are still moving.
A lifestyle focused home builder will help you think through all of this. Not to limit your vision, but to make sure the home you're dreaming about is one you can actually build — and enjoy — without financial stress.
At INH Geelong, we're a customer focused Geelong builder and we'd rather have the honest conversation early than surprise you later.
If you'd like to talk through your budget before committing to anything, come and see us at inh.com.au/Geelong.
