Should you buy a home? Or build new?

From a luxury waterfront home in Sanctuary Lakes to an affordable family home for first-time buyers in Point Cook, the established property market has something for everyone. In Wyndam, there are also options to purchase a house-and-land package. But what is the best choice from both a lifestyle and investment perspective?

In this article we’ll give you the pros and cons of buying an established home or building your own.

The benefits of buying an established property

One of the major advantages of buying a pre-existing residential property is that you can move in rather quickly. You can also see exactly what you’re buying, walk through the rooms, and perhaps even enjoy an established garden. Often neighbourhoods with established properties are more developed, so you have more certainty about what you’re getting than with a newer estate. If the home has been well-maintained, you can simply settle in.

The disadvantages of buying an existing property

Established homes that have been lived in can come with ‘old house problems’. These can range from maintenance issues and systems that need replacing. You might also want to update the lay-out, fixtures, and generally modernise your home. Even if the property is structurally sound, you might want to renovate over time. While this is certainly achievable, living life around renovations can be inconvenient.

In short, there are many advantages to buying a property that’s already built – apart from the fact that you may inherit a dated kitchen or hideous bathroom.

The benefits of building a new home

Building a new home is quite a journey. One of the best things is that you get to choose a customised design that suits your needs. The variety of homes and styles on offer from building companies continues to expand, and your home will have a fresh, contemporary look that you will love. You can opt to build an energy-efficient home as well, saving on energy costs down the line. Insurance and maintenance costs can also be lower than for older homes. Also, all works are guaranteed by the building company for a set period of time, so you shouldn’t have unexpected maintenance costs with a brand new home.

The cons of building a new property

Uncertainty in the construction industry is pretty high at the moment. Companies going bust, supply chain issues, and potential cost blowouts due to material shortages and delays are real. Therefore, you might feel nervous about building your own home. Likewise, when you buy a home off the plan, you should ask a lot of questions about what inclusions come standard and which ones are extra. It is important to check your contract carefully and make sure you end up with what you bargained for. Also, construction loans can come with time constraints.

In short, building your dream home gives you lots of flexibility and will set you up better for the near future. But it also comes with lots of work, time investments, and it might be too stressful for some.

Are there grants available to help buyers decide?

It’s always worth looking into the latest government grants to help you in your decision, particularly if you are a first-time buyer. These grants can significantly reduce the cost of your new home. Here is a quick rundown of the latest concessions available. Information and grants often change, but you can visit the State Revenue Office for the latest information.

• First home buyers may be eligible for the First Home Owner Grant (FHOG) of $10,000, for properties valued at under $750,000. However, this grant is only available to brand-new homes that haven’t been lived in, which is another benefit to building your own.
• You may be eligible for an exemption or concession in stamp duty for a newly built or established property – check with the State Revenue Office for the most recent requirements.
• For those first-time homebuyers who decide to buy off the plan, there is a further incentive worth investigating – an off-the-plan duty concession. This means you can subtract the cost of construction when working out how much stamp duty you need to pay.

Talk to us

No other real estate team has been in the Point Cook region as long as Established Property. As the area continues to mature and thrive, it’s increasingly popular with buyers looking to live close to Melbourne city. While also enjoying the peace and quiet.

Our longstanding area knowledge means we are the people to talk to when it comes to buying, selling or investing. We know all the building companies and we truly believe this is a great place to live and work. Making us the perfect real estate agents to sell or manage your home.

If you have a real estate or lifestyle-related question, call us – because nobody knows the area like we do!