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Pros And Cons of Buying Vs Building Your Dream Home

By John Carter

Property Valuation

The great dream, to own your own home, the big question is, to buy a new home or build one? This can be a difficult decision, to know what’s the best option for you and maybe your family. Whether you buy or build a new home there are multiple pros and cons that you need to consider.

This blog we will discuss both options to help you make any informed decision about which path would be best suited to your requirements as a homeowner.

Pros

First homeowner’s grant

If you are a first homeowner, buying a freshly constructed home off plan, not yet lived in you have a higher chance of a legibility for a grant approval. Although this all depends on the state or territory. If you plan to build you may or may not be eligible for a grant, again where you are will also play a role in that decision.

Stamp duty

When you decide to build a home from the ground up you are not required to pay any stamp duty on the house, you only have to consider the costs for the land you have acquired. This will also apply to newly built homes that have not yet been lived in. although there may be other costs to consider when you build that buying doesn’t entail, these costs include fences, driveways, and landscaping

Building your dream

Many potential homeowners tend to build instead of purchasing as there might not be anything on the market that suits what they are looking for in a home. Even though it may be less expensive to purchase a property, you need to consider how much you would be willing to pay for renovations on the home to make it fit your requirements and ideal home picture to suit your lifestyle.

With new homes being built, the material used and the finishes of fittings for appliances, many of these homes are more energy-efficient, saving you money as well as contributing to saving the planet in the future.

Cons

Building Takes Time

When you build a home, you need to remember that it takes an average of 7 months for the property to be built and approved to move in. This can vary depending on the size and complexity of the build.

If you are borrowing money from a lender, you need to remember some lenders have certain timeframes for borrowing. Construction timeframes for completion can range from 6 to 24 months.

Moving in

You’ve purchased the land and started construction; you will need to factor in that you won’t be able to stay on the property for a while so there will be additional costs involved as you would have to find somewhere else to stay until the property has been completed.

No fixed costs

There are various costs involved when building and at times this can spiral as various aspects may arise which can delay the process, and this could cost you more to fix. You need to make sure that everything in the contract from your builder is included, at times there are fees that  will not be included and then this can affect your budget down the line when these additional costs arise.

Any modifications made throughout the building process will incur costs:

  • Architect, builder, or engineer drafting fees
  • Builder penalty fees
  • Legal fees to alter the contract
  • Extra materials
  • Extra labour

Make sure all your requirements are met prior to construction so this won’t affect your budget or the timeframe of completing your home.

Is it cheaper to build or buy?

Every homeowner asks themselves this question, and it comes down to the type of home you want. Building a home can be a less expensive option for almost all property types, if you can find a developer selling the type of property you want off-plan or land that is ready to build.

If you’re looking for more specific features, building would be the better option, just keep in mind the timeframe of the construction to move in. If you’re not willing to wait, buying a property would be a better option. You would still be able to stay within your budget, but keep in mind all additional costs like mortgage repayments, renovations, and stamp duty.

At the end of the day, it all comes down to what your property requirements are, we recommend enquiring about a property valuation as our team of professionals will help determine what service is best suited for your property related purpose.

We guarantee the outcome from your report will provide all the information and data you require to help you make the informed decision on either buying or building a home and how best to prepare for either option. At the end of the day property is the biggest asset you will own so it’s vital you take all necessary steps to get you on the right track.