To build or not to build?
I help many people with buying established homes and building new homes. If you are leaning towards buying established or are undecided, please speak with me first. I will happily share with you a lot of FREE information and advice to help you make an informed decision. You have nothing to lose and everything to gain by speaking to me. Use my expertise in this area because I have helped hundreds of families throughout Perth with their homes.
Is it better to buy an established home or to build a new home?
I get asked this question regularly because it is an important decision. Both of these options have their advantages and disadvantages, financial and social benefits but in the end, the decision comes down to your priorities. You need to weigh up the pros and cons and determine what suits your personal requirements and financial position the best. Let me share some information with you.
Generally, an established home will be located closer to a city or town centre, not further away like new home estates and therefore be nearer to facilities and infrastructure such as schools, employment opportunities and public transport. This sort of location is usually considered more convenient and therefore preferable.
Established homes generally sit on bigger blocks than what’s available for building a new home. These homes often have bigger yards along with fairly decent sized homes. Land sizes used to be a lot bigger, but due to significant increases in land prices over the years land has become smaller to make it more affordable.
Buying an established home is a quicker process than building a new home. Once the initial house hunting is done and your finance has been approved you can move into your home relatively fast. New homes require many more months to build and you may need to continue renting while your home is being built.
Established areas generally have well established trees and parks and the homes have well-established gardens. This can initially be lacking in new housing estates. Local councils do though often require land developers to provide facilities such as playgrounds and lakes, trees and landscaping in new housing estates so over time the estate will be more appealing to the eyes.
A key question you need to ask yourself is whether this home is intended to be your forever home or an investment property. If it’s the latter, the established home is sometimes the better bet.
If, as a first home buyer, you want the opportunity to move to a second bigger and/or better home, as best as possible you need to ensure that your first home will grow in value to allow for this upgrade in the future.
Buying an older home and doing some renovations can be an effective wealth-building strategy if you do it well. Buying the right established property can add instant value with the right makeover, but you must factor in your time, labour and cost. There are many horror stories out there where people have lost a lot of money, so be careful.
New Home Build
Buying land and building a new home offers several unique benefits not offered when purchasing an established home. Many first home buyers are choosing this option due to the $10,000 First Home Owner Grant, Home Of My Own Grant and Stamp Duty Concessions. Read more about these benefits under my Finance section.
Building a new home for investment purposes also has many tax advantages. You will need to get good professional advice from an accountant or financial planner.
All new homes are required to be built to a higher energy efficiency standard which is often not available in particularly your much established homes. New homes will also have fewer maintenance issues. These are all potential ongoing savings for you.
A well-designed new home based on new building practices such as natural ventilation, energy efficiency requirements and more efficient use of space will always be attractive to a new buyer if you decide to sell.
Even if issues do arise, these will generally be covered under the builders or suppliers’ warranty. You will have a house that you won’t have to put much money towards over the next few years. Everything is nice and new, with very little work to be done.
The main advantage of a new home is the “creative control” this offers you. You decide things like what you want your kitchen to look like, the layout and size of your bedrooms and bathrooms or how big your entertaining area will be. Building your home can be a very rewarding experience because you can come very close to creating your ideal home, but finding that ideal established home may never happen.
A significant advantage of a new built home is that everything is brand new. You don’t have to worry about the hot water heater system breaking down, plumbing or electrical issues due to wear and tear, huge electrical bills due to inadequate energy efficiency solutions in the home or a leaking roof during winter. At least for the first several years there will be little or no maintenance issues and more importantly no unexpected costs!
Yes, building may be the more time-consuming process, but if you are in no rush and looking for a beautiful home to raise your family and to live in for decades, this is a fantastic option.