Building vs buying: Should I build a new home or buy an existing one? To make a confident decision, it helps to put on your thinking cap and use your imagination…
What is my place going to look like in 5 years? What’s going to break and what will I add? How much effort do I want to put into my place?
Don’t worry, you don’t need all the answers just yet. The future is unpredictable, but this isn’t our first rodeo. Buildi has come up with the following pros and cons to determine if building a new home is right for you:
Building New: The Positives
When walking through an existing open home, you might think the ceiling is a little too low. Maybe the windows are a little too small or the kitchen is a little too old. When you build your own home, you can get everything JUST RIGHT.
1. ✅Design your home to suit you
Create your floorplan… pick your colours… calibrate your voice activated security system… The sky is the limit…
2. ✅Government incentives
When you build a new house, you can apply for concessions and rebates from the government. This could save you money on all sorts of things from solar panels to stamp duty. By the way, stamp duty is only paid on the land you build your new house on.
3. ✅New homes can be greener
The world is growing, and people need new houses all the time. By building a sustainable new home, you can use eco-friendly materials and technology to reduce future carbon emissions.
4. ✅Instant equity
As soon as your builder hands you the keys, you could cash in! New houses are often valued higher than their build costs. Here’s an example:
Michaels block cost $350,000, + his house cost $300,000 to build. His total cost = $650,000.
A property valuer then visits Michael’s house. Over a cup of coffee, she reveals that Michael’s house is actually worth $700,000. Michael is excited to realise he made $50,000 in instant equity!
Building New: The Negatives
Building a house is a big commitment. When weighing up building vs buying, know that building new is not all sunshine and roses.
1. ⛔️Long Process
Building a house could take the better half of a year. A lot of decision making is needed during this time, and you might experience some delays. We think this is part of the fun though! Seeing your home come together slowly can be satisfying, like watching your garden grow.
2. ⛔️Living Arrangements
While your build is underway, you might still have to pay rent. However, as soon as you get those keys, you never have to pay rent again!
3. ⛔️Confusion
Display homes can be a kind of spooky! Nobody lives in them and most of the stuff you see is NOT included in your plan. This can make a display home tour confusing and awkward. Your builder may have a list of what costs extra, but it’s probably written in tiny font.
4. ⛔️Mistakes
When people build, they take the huge risk of looking to their builder as a sole source of guidance. Builders are experienced, but everybody makes mistakes. The QBCC receives around 6,000 disputes per year.
That’s 6,000 mistakes that could have been avoided. Contact Buildi to dodge the pitfalls!
Why Team Up with Buildi?
- We know a wide range of builders in one location to save you time.
- We’re able to know what your new home is going to cost early in the process, which will help you avoid over capitalising.
- A dedicated building consultant will guide you throughout the process.
- From initial consultation to handover, we’re by your side.
- We provide true pricing, information and time frames to ensure there is transparency in your building contract.
We don’t accept second best and nor should you!
Buying: The Positives
People often buy an existing house close to where they currently live. They may know the locals and have a feel for the area already. When it comes to building vs buying, here are some benefits of buying an existing home.
1. ✅Move in Ready
You can move in to an existing house on the settlement date. Settlement takes way less time than construction.
2. ✅Established Neighbourhoods
You can drive through any existing suburb to see what the lifestyle is like. That being said, no one can predict what an area will be like in the future.
3. ✅Renovation
You can create growth by flipping an old house or adding space to it. If you’ve watched shows like The Block or Reno Rumble, you’ll know that renovation is not for the faint hearted…
If you do go down the reno road, make sure you buy the right property at the right price. It’s also crucial to understand the renovations that will yield the best results.
4. ✅Auctions
If you enjoy a spot of gambling, auctions are a good way to win or lose big amounts of money in a small amount of time.
Buying: The Negatives
We all dream of discovering hidden treasures in our back yard. Unfortunately, when you buy an existing home, you are far more likely to discover a leaky tap. Here are some ghosts that may be floating around an existing house:
1. ⛔️Maintenance
Homes wear and tear over time. If you are not handy, you might be paying a fortune in tradie bills. This is especially true if you have… children! They are experts at testing the breaking strength of your house.
2. ⛔️Compromises
It is impossible to find a property that is perfect, and challenging to find one that works for you. Changes to your home will attract additional costs.
3. ⛔️Due Diligence Problems
Some problems with your home might not be obvious straight away. Due diligence is more extensive and complicated when you buy an existing home. Everything inside is technically “second hand”.
4. ⛔️Trends
If you buy a house that was built 10 years ago, it’s probably still considered “modern”. Fast-forward 20 more years, and your home may no longer be “hip” and “cool” like your future grandchildren. If you build a new house today, it will still “fit in” for years to come. The last thing to weigh up between building vs buying is how trendy you want to be.
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