Over the last decade, the housing market has no doubt continued to boom and the demand for purchasing property has never been higher. With house prices continuing to rise, the old age question remains… Is it cheaper to build a new home or buy an existing one? Many buyers in the market cross this decision and therefore, don’t know where to start looking. Although both options have their own list of pros and cons, the ‘correct choice’ ultimately depends on the needs and wants of the buyer. We’re here to outline all the considerations you can take to make choosing much, much easier for you!
Buying an established home has a range of benefits and is generally the first course of action that many buyers take when shopping around. Ultimately, the process of buying a home is a lot simpler and quicker as buyers are moving in from as soon as 30 days. Although this has always seemed like the most direct course of action, there are a range of challenges that buyers are facing in the market with rising costs in Sydney. Most existing homes are closer to the city, in established areas or are on larger sizes of land, making them much harder to afford for a first home buyer. Alternatively, if you can find a home suited to your budget, then it’s important to consider the quality and longevity of the house itself. In turn, renovations can end up costing more if the home is too withered so it’s important to consider how much extra money you may need to spend once the home is purchased. From location, to design, to pricing, here are a range of factors
On the other hand, building a home from scratch can seem more ideal as the home is not only new, but customized just for you. There’s something different about buying a new product and this doesn’t excuse houses. Although the outcome seems preferable, the process and time taken to execute a build is much more complex. Building a new home can take up to 12 months and many new buyers will need to rent during this time, however, if the wait means that you can take creative control of your very own design then many people are happy to go through the longer process. Additionally, building a new home requires you to build in new emerging areas and suburbs - this can be ideal for investors who are seeking higher capital growth or families who prefer newer estates. There are two different options that can be explored when building a new home.
Purchasing a house and land package is usually a great way to bridge the gap between buying an established home and building a new one. House and Land packages avoid the hassle of securing land, while also choosing a home design suited to the lot. Although it may restrict your home design options depending on the shape and size of the land, packages are usually fixed priced and much easier to cost. Additionally, many are situated in new and emerging suburbs which can be great for investment properties. If you are wanting to build a new home but want a smooth and straight-forward process, then house and land packages might be for you!
Alternatively, some new home builders prefer more freedom and want to purchase their land separately in a location suited to their wants and needs. This usually calls for more customized home builds, more inclusions and higher costs. This process can take longer than most and the contracts can get quite complicated, however buying off the plan allows buyers to create a home specific to them. The price of purchasing a home and land separate can vary depending on what has been selected by the buyer.
At the end of the day, there are a range of positive and negative factors to consider when purchasing a new home and this unfortunately can't be avoided. We always recommend seeking advice from a home loan specialist and weighing out what is important to you. Owning a new home is always tricky, however, at Domaine we believe that transparency and knowledge is key. If you're wanting to build a new home, then we are here to help you. Reach out today to get started on your journey!