Building A House Vs Buying An Existing House
Are you about to embark on the journey of buying your first home? You may be wondering – which is the better option: building a house vs buying an existing house? There are so many factors to consider when faced with this option.
Does it suit your needs, is the price right and do you have the time to wait or do you need to move soonest?
Pro’s Of Buying An Existing House
- Established homes normally have more character than a new build (which gives a ”çookie cutter” feel).
- The potential defects of an established house are often visible. When building, you aren’t sure of potential problems which may have been caused by your builder taking a few shortcuts.
- Buying an established property is usually a faster process. You could move into your home within 30 days, compared to waiting a few months for your new build to be completed.
- It is not common to incur additional costs such as fencing, driveways and garden setup, as you would experience when building.
- Generally an existing property is located closer to a city and so will be nearer to schools and employment opportunities.
Cons Of Buying An Existing House
- There will be wear and tear from the previous owner
- An older home may have hidden problems such as pests or asbestos
- Whilst you can renovate, you must still work with the existing structure of the home
Pros Of Building Your Home
- You are eligible for the first home owners grant. (Currently $15,000 which you could use towards your deposit, stamp duty or moving costs).
- You only pay stamp duty on the land when you build (compared to paying stamp duty on the actual house as you would when buying an existing home)
Cons of Building Your Home
- While your house is being built you have to pay for somewhere to live
- There are often delays in the building schedule – costing you more rent while you wait
- Having to pick everything from the paint to the light fittings can be overwhelming
- One word – location. If you are building a new home, chances are you are building on a block in the suburbs. This rules out CBD living.
Which option is cheaper?
Depending on where you live it may be cheaper to build. According to this article by finder, Perth is the only city in which it is more expensive to build. However, it depends on the suburb and the quality of home you are looking for. And as mentioned, you have to find somewhere to live during the building process. Whether you choose building a house vs buying an existing house, we hope you are excited to get started with home ownership!
Once you have made up your mind on what option best suits you, you may still need a bit of extra cash for other costs involved in buying and moving. Apply for a small loan with us
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