Question 1

Do I need a written domestic building contract in Victoria?

Accepted Answer

For most new homes and major renovations, yes. In Victoria, work above the current major-domestic-building-contract threshold must use a written contract that sets out the price, inclusions, progress payments, and how variations are handled. A quote or handshake is not enough. Consumer Affairs Victoria publishes the current threshold and contract rules — use those as the source of truth before you sign.

Question 2

How much deposit can a builder take before work starts?

Accepted Answer

Victoria caps deposits on domestic building contracts. As a guide, contracts of $20,000 or more are limited to a 5% deposit; smaller contracts are limited to 10%. Anything above that is a red flag. Confirm the current figures on Consumer Affairs Victoria before you pay, and never pay large sums in cash outside the contract.

Question 3

What is Domestic Building Insurance, and when is it required?

Accepted Answer

Domestic Building Insurance (DBI) protects you if the builder dies, disappears, or becomes insolvent. In Victoria it is generally required once the contract price is above the current DBI threshold (commonly cited as $16,000 — check Consumer Affairs Victoria for the live figure). Ask for the DBI certificate before work starts, not after handover.

Question 4

House-and-land package or a custom / knockdown-rebuild — what should I compare?

Accepted Answer

A house-and-land package is faster to price but locks you into a standard design and a specific lot. A custom or knockdown-rebuild lets you design for the block, but planning, demolition, and engineering sit on the critical path. Compare the same inclusions (site costs, connections, landscaping, fixtures), who holds the land risk, and what happens if permits are delayed. RERONA can walk both paths with you in a free consultation.

Question 5

How long does planning, permits, and a typical Melbourne build take?

Accepted Answer

A straightforward single dwelling can still take many months before a slab goes in: design, engineering, council or private building permit, and any overlay or covenant issues. Construction time then depends on size, weather, and selections. Treat any “guaranteed start date” that ignores permits as marketing. We map a realistic sequence on the first call so the contract reflects real timing, not a brochure.

Question 6

Is GST included in a new residential build, and can I claim it?

Accepted Answer

New residential premises are usually sold GST-inclusive, but whether you can claim GST credits depends on how the project is structured and whether you are registered for GST. Owner-occupier builds, developments for sale, and commercial work are treated differently. This is tax advice territory — speak to your accountant before you assume a credit, and ask us for a GST-aware contract breakdown.

Question 7

Can I claim depreciation on a new investment property?

Accepted Answer

New builds typically support a capital-works (Division 43) deduction, and a quantity surveyor’s report is the usual way to document it. Plant-and-equipment deductions were tightened for second-hand residential assets, which is one reason new stock is often preferred. Your tax adviser should confirm what you can claim for your situation.

Question 8

How does Victorian land tax affect a vacant block or a new build?

Accepted Answer

Land tax in Victoria is assessed on land you own that is not your principal place of residence, and vacant residential land tax can apply in designated areas if a dwelling is left empty. A block sitting idle while you wait to build can still attract holding tax. Check the State Revenue Office for current rates and exemptions before you settle on land.

Question 9

What should I know about dual occupancy or multi-unit developments in Victoria?

Accepted Answer

A second dwelling or a small multi-unit project often needs a planning permit as well as a building permit, and overlays (heritage, flood, bushfire, neighbourhood character) can change the yield. Frontage, garden area, parking, and servicing all affect whether two dwellings actually fit. We start with a site read — not a floorplan — so the feasibility is honest before you buy or sign.

Question 10

Fixed-price contract or cost-plus — what protects an investor during the build?

Accepted Answer

A properly itemised fixed-price domestic building contract is usually easier to finance and to model (interest, rates, vacancy). Cost-plus can suit unusual or highly custom work but shifts price risk to you. Either way, watch variations, progress-payment timing, and holding costs if the programme slips. We prefer clarity in the contract so your numbers do not move every month.

The questions we hear before a Victorian build.

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Home buyers in 'driver's seat' but owners holding fire

Longer reads.

House and Land vs Custom Build: Which Is Right for You?

Understanding Your Residential Construction Contract in Victoria

Building Timeline in Melbourne's Outer Suburbs: What to Expect from a Custom Home Builder Melbourne

Knockdown Rebuild Melbourne vs Renovation: How to Decide for Your Property