Josh and Anna, a young Bundaberg couple, purchased a block of land a few years ago, ready to build their dream home. But with interest rates rising and rumours of price drops, they held off on building, thinking they’d save a bunch of money.
Fast forward to 2024, and they were left shaking their heads in frustration as the costs of labour and material prices continued to climb.
Their initial $450,000 construction estimate had risen by 8%, meaning they’d need an additional $39,000 just to get started.
Unfortunately, Josh and Anna had to learn the hard way that waiting in real estate doesn’t pay off. In fact, had they started building when they’d first planned to…
They Would Have Saved Almost 40 Grand
Truth is waiting for the “right time” to build in the hope that prices will drop is like expecting the price of everyday essentials — such as groceries, petrol, and beer — to suddenly drop by half. It just isn’t going to happen.
While the Australian housing market might experience slight stabilisations from time to time, substantial declines are incredibly rare.
Our population growth and limited housing supply mean that demand consistently outstrips supply, pushing prices up year after year. In fact, our house prices are projected to increase by about 5.3% this year alone.
To put that in perspective, if a $700,000 home appreciates by 5% over the next year, waiting to buy it could mean paying an extra $35,000.
Of course, building costs follow a similar trend, climbing in tandem with house prices as demand for construction materials and tradespeople surges.
5 Key Reasons Why it Makes Sense to Build Sooner Rather Than Later
Benefit #1: Price protection. Starting now lets you lock in today’s material prices, shielding you from future price hikes. It’s a simple way to keep costs steady and avoid unexpected expenses as demand goes up.
Benefit #2: Timeline certainty. Engaging a builder now means you can secure a start date and lock in a clear timeline before other projects fill up their schedule. This will also keep you on track for your expected move-in date.
Benefit 3#: Access to skilled trades. The best contractors book out fast. Acting now lets you secure top tradespeople, ensuring the work is done right the first time, without last-minute compromises.
Benefit #4: More negotiating power. Starting the process sooner gives you time to compare quotes and negotiate on your terms. When you aren’t under pressure, you’re in a stronger position to find the right builders and materials, at competitive rates.
Benefit #5: Design flexibility. Beginning early allows you to shore up your design choices without feeling rushed. You can take your time refining your layout and finding the perfect finishes to ensure your custom home matches your lifestyle and tastes.
Bottom Line: Starting Now Gives You More Control
If you want to make sure you aren’t 40 grand over budget a year from now, wishing you’d started sooner, it’s best to find a builder now.
But taking decisive action is just one part of the equation. Building a custom home requires industry know-how and detailed planning at every stage.
That’s why we’ve put together this comprehensive guide for you to download:
7 Things You Must Know Before Designing a New Home
It’s completely free — and loaded with tips to help you avoid the common pitfalls and build a home that truly lives up to your vision.
*Disclaimer: Names and identifying details have been changed to protect the privacy of individuals. These stories are based on real events, and any resemblance to actual persons is coincidental.
