Buy or Rent?
So, you are thinking of buying a house, but are unsure of whether you should buy an existing house or build a house from scratch? We have compiled a list of cons for each option to help you narrow your selection!
The best option is to talk to a builder and discuss your options. If you make your own house, consider saving long term costs such as getting artificial turf installed instead of a natural one. Talk to both parties and see what they suggest and see what feels right for you!
Buying a house
Pro: You know what you are getting
The potential defects of an established home are often visible, or they will show up in the pre-purchase building inspection to give you a warning about what to expect before buy. This type of inspection can’t happen if you build a house.
Buying an established home means buying into a neighbourhood. You can easily find out if it is close to schools, cafes, public transport etc, and this can be difficult to find vacant land to build on.
Pro: Solar Energy
Solar panels can be a great solution to save money on electricity bills. Getting solar panel installations is easier if you have your own house compared to an apartment building. As per Pioneer Solar who are solar installers in Brisbane, your long term returns with solar energy can be huge. You can save a lot of money in 5-10 yrs. So, keep this in mind when you are deciding whether to live in a house or apartment.
Pro: A smaller deposit may be required
You may need a higher construction loan to build a house from scratch than you do to purchase an existing one.
Pro: It may be closer to the city centre
In general, you will find it very hard to find any vacant land to build on close to the city centre. Being close to the city centre means that an established home is more likely to provide facilities and infrastructure such as public transport, schools and job opportunities. If your work is close to the CBD, choosing a home close to the CBD is likely the best option for you.
Pro: it’s a faster process
It is a great deal faster to settle and move into an established home than to build a house from scratch. You can move into an established home in as little as 30 days from signing the conditional contract to the date of settlement, meaning you could be in your new home in a month. Meanwhile building your house can take many months, on average around 7.5 months.
Building a house
Pro: First home owners grant
Buying a newly-constructed home may appeal to first time home buyers because the first home owners grant is available if you buy a home that no one has lived in before. You need to check which state or territory you live in first, before making the decision.
Pro: Stamp duty on the land
When you build a home from scratch, you only pay stamp duty on the land, ot on the house. This is the case for all houses that are newly built and have never been lived in.
Pro: Time it right, it might be cheaper
Developers have a quota of properties they need to sell off in order to meet their finance and begin construction. This means you may be able to find lower prices on offer if you get in early in the first stage of sales.
Pro: You can build it how you like
A larger number of potential buyers end up building because they don’t find anything that suits their needs. Even it if may be cheaper to buy an existing property, potential buyers or builders must consider just how much they are willing spend on renovations to make their household “just right”.