Which one? Should you build a new home or buy an existing home? Both have their benefits and disadvantages. Mortgage costs and lending criteria does come in to play when you look at either option. Would the existing house new work? Do you have enough of a deposit to build a brand new home?
Building a new home
- House and Land packages are aplenty in the market and if you’re not overly creative this gives you an option. You can see a package price but you still get the option to pick your colours and fixtures.
- New homes appeal to the modern market and trends therefore can become more of a benefit when it comes time to sell.
- Everything is brand new.
- New homes are usually designed to be more eco-friendly therefore less energy bills.
- You will make money on a brand new home when you decide to sell.
- You may be eligible for a First Home Owners Grant.
- You may need more of a deposit because new homes can be hard to value initially and is a risk to banks.
- You’ll be living in a new suburb which is growing.
- Lower maintenance costs.
- Choice of lot sizes. They can be smaller in suburbs.
- You need to be able to make decisions confidently.
- Landscaping can cost more than you think, but it gives you the freedom to add your own flair.
Buying an existing home
- You can move in straight away with no wait times.
- Older properties can be cheaper – especially if you’re prepared to do a little bit of work yourself.
- You can find properties with charming features that wouldn’t be able to build in a modern house.
- Established homes are usually closer to the city and land sizes can be bigger.
- What you see is what you get.
- Older homes need maintenance and updates.
- There is room to negotiate a price.
- Established gardens.
- There will be Stamp Duty to pay on top of the property.
The decision to buy or to build is not an easy one. Each type of property comes with its own set of benefits and disadvantages. Think about your personal financial situation and long term plans before you take the plunge, and weigh all options carefully. Think about what you want to achieve financially through property. And then work out which type of property is going to suit you and help move you towards your financial goals faster.