Mythbusters: Is buying cheaper than building?
To build or not to build… that is the question – at least the question that rages through many peoples’ minds when faced with the decision to build or buy. Most often, factors like cost, timing, suitability and convenience are the ultimate decision makers – but so often, people are left questioning their choice. We’ve briefly outlined some of the pro’s and con’s for each below – we leave it up to you to make the choice that is best for you and your circumstances.
Buying – often the go to for people looking for a home, but buying comes with a unique set of challenges.
- Buying a home, especially older properties will invariably have a higher need for maintenance and repairs than a newly built home.
- The bought home may not be energy efficient and the cost of converting an existing home to be energy efficient comes with costly renovations.
- The design and floor plan is fixed and alterations are limited.
- The buyer of a new home does not qualify for a seven-year homeowner warranty and has to pay stamp duty on the final price of the home.
- Depending on location and demand the property it is unlikely to appreciate in short-term value as quickly as that of a newly built home.
- On the plus side – the buyer of a home has less initial outlay of cash than that of the new home builder
- as well as the advantage of being able to move into the home as soon as all contracts are settled.
- In most cases, the stamp duty and agents fees incurred in the purchase of an existing home means that for a while, an existing home will be negative equity in a soft growth market.
Building – like buying, building comes with it’s own set of challenges – and although many are afraid of embarking on the building journey, the pros quite often outweigh the cons:
- You get to custom design and match your home to suit your specific needs and tastes, as well as have the flexibility to change fixtures and fittings as building progresses.
- Building a home allows you to apply all the energy efficiency modifications needed at the get go.
- On top of this, the first time home builder also has the option of being eligible for a first home owner grant from Government as well as transfer duty concession.
- Building your own home offers many options, ranging from choosing a complete home and land package, to choosing your own land, design or having a completely new home designed.
- By visiting the builders display homes, you get the advantage of seeing your dream home and the choice of your colour scheme, style, fixates and fitting to suit your lifestyle, while allowing you the opportunity to add little tweaks and modifications before commencing the build.
- The caution factors would be to make sure you build with reputable builders and that the costs and time factor be contained in a signed agreement.
- By building a home, you effectively become a property developer of sorts, as there is time and effort required to complete the process.
If you need assistance with building a home – or if you simply wanted to find out a little more about the process, our new home experts will be happy to set a private and obligation free appointment with you to discuss your needs and tailor a package to perfectly suit your lifestyle, tastes and budget. Contact us today on 1300 301 211