Please note - Due to the holiday season, builders and developers may be slower than usual in responding to any queries Close

Building vs Buying a House | Things to Consider

When you have decided to find your own home, one of the first decisions that you will be faced with is whether you want to build vs buy an established home. Each decision has different benefits and downsides, but ultimately making the right decision is based on what is right for you and your family.

To help you decide which path you should take, we have provided you with a list of questions to ask yourself about your building requirements. After you have defined what you need out of your new home, have a chat to one of our consultants who can use this insight and match you to the right builder or developer.

Building vs Buying a House: Considerations

1.What is your budget?

If you have a tight budget, making every dollar count is vital.

  • Budget builders can offer you the opportunity to move into your own home for less than you might think. And with fantastic new estates popping up, there is affordable land for you to build your new home.
  • House and land packages can offer you the security of a fixed cost, that building your own home generally is unable to do. There are also some budget options that are far cheaper than buying an established property.
  • If you are looking to save money, then it is worth noting that if you are building new, the amount of money paid as stamp duty will be far less for new builds. This is because you only pay on the land component, not the entire property including the build. This can save you $1,000’s and alternatively if you are a first time buyer, you may be able to avoid paying stamp duty all together. Visit your states revenue office for more information on FHB concessions and incentives.

If you have a large budget to work with, location and luxury might be on the top of your list:

  • Buying an established property can be expensive, however if you have an unlimited budget, it might be worth it. Another option could be to purchase an older established property, and demolish the existing home, allowing you to build a more luxurious and appropriate home for your needs.
  • A custom builder generally costs more to build with than a volume builder, but can allow you to create a home unlike anyone else’s.

Budget Tip:

A great way to make every dollar count when building your new home is to find a builder you like that offers a standard plan that includes everything that you would like in your home. Once you have the initial quote, remove the prices from the first builder and ask similar builders to quote the same product. This allows you to compare the same house and find a price that will work for you.

2. Where do you want to live?

If you want to live in a metropolitan area:

  • You will most likely have to buy an established property. Many established properties will be older and may still require quite a lot of renovations or long term maintenance
  • If you find a block in an established area that has an older home, you may be able to demolish it and build a new home in its place. The great thing about knocking down and rebuilding is that you can build a home that works for you and your family, instead of adjusting to fit an older home.

If you are happy to live outside of the metropolitan area:

  • In Victoria and New South Wales, there is a longer wait for titled land, simply because everyone is interested in building in these booming areas and land supply has been tight. There are many pros and cons to waiting for land to title that you can see here. Ultimately though, the land is more affordable in these areas and will only grow in time.
  • Securing a house and land package in a land estate is also a great idea, because everything including identifying and sourcing land that works with your ideal house design is done for you.

Location Tip:

Not all builders can do knock down rebuilds, or semi custom or even full custom home designs. Don’t waste your time looking at builders who can’t meet your building needs. Talking to one of our expert consultants means we can steer you in the right direction from the very start.

3.   What do you want the house to look like?

If you want a custom designed home:

  • There are many custom builders who can create a design uniquely for you, taking into consideration your requirements, lifestyle and family needs. You can either purchase a block of land in an estate for your custom home, or do a knockdown rebuild if proximity to the CBD or living in an established area is important to you
  • Alternatively, if you purchase an existing property, you can renovate. This however, will provide you with many restrictions, because there are constraints on what can and cannot be changed with a renovation.

If you are looking for a home designed by experts:

  • Although volume builders are not designing a home for you in particular, they do take into consideration how different families, during different times in their life use their home. For example, if you have a large family, or have older children at home, there are designs with extra living areas for the older kids, or large open plan living for entertaining.
  • If you are an investor, buying a house and land package that maximises return is important. Complete packages allow for you to get the most bang for your buck and save money through smart design.
  • Choosing a builder that can provide you with off-the-plan designs, but allow you to make variations allows you to save costs but still enjoy aspects of a custom home.

House design Tip:

Heading to a display home to get a feel for your potential home design is a great idea. Plan ahead and create a shortlist before you go to a display village. This will save you time, and the headache of forgetting and confusing the designs. You can use 3D floor plans that some of our member builders have to walk through house designs from the comfort of your own home.

4. What is your timeline to move in?

If you want to move into your home soon:

  • Building a home takes time, and there is no quickening the building process. The only way to save time, is to make sure you are prepared to start building before your land has titled. Keep in mind that buying an established home will often have a 12 week settlement period, whereas building a new home can take as little as 16 weeks once land has titled.
  • Nevertheless, an existing home will normally allow you to move in much sooner than if you need to construct a home. However, you generally will take some time finding the right house or renovating because existing homes were built with someone else’s family in mind.

If you want to wait before you move in:

  • Purchasing a home, whether new or existing, is a big process. Making sure you do it right and don’t rush the process is important. If you have to wait for your land to be titled, check out how to make the most of your time.
  • Waiting may be painful but, moving into a newly built home means that you are eligible for warranties from the builder if something were to go wrong for the house. Purchasing an existing property can be quite a costly process, because even if you look at the property thoroughly, you may miss things, and end up with a huge repair bill or a home that costs more to run day to day.

Timeline Tip:

Don’t be put on hold, transferred between departments, or confused by different offers builders have. Be assigned a dedicated consultant from the start, who will contact you with all the right information you are looking for. At iBuildNew we connect you to the right people so you don’t have to waste any time.

Need some more guidance? Make sure you chat to one of our team about what builders or developers can help make your dream a reality. Call us on 1800 184 284 or book a call online.

iBuildnew Advisory Team
Let us do the legwork for you.
  • We’ll ask the right questions to better understand your needs
  • We’ll create a recommended shortlist ideally matched to you
  • We’ll answer specific questions or concerns related to home building, land purchasing or financing

Zoe Langenberg

Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.

About

iBuildNew is the market leading aggregator dedicated to residential home construction and land development. As an independent platform, iBuildNew helps Australians identify and compare new home designs, house and land packages and land estates. It’s the smart way home buyers, who are considering a new build, can find the ideal options to match their individual needs. Home building is a big decision, we make sure you get it right.

You may also like

Nov 28, 2022

Suburb Property Profile: Parramatta, NSW 2150

  Thinking about building a new home in Parramatta, New South Wales? Our Suburb Pr...
Read More
Mar 07, 2023

Ready To Buy Your First Home in 2023?

Everybody aspires to build their dream home one day and shares the desire to make their...
Read More
Sep 28, 2022

Inflation Outlook Improves as Home Building Costs Ea...

  Australia’s inflation rate has surged to the highest levels since the early 1990...
Read More
Jun 09, 2020

WA Government Announces $444 Million Housing Stimulu...

This article is being updated as new information is announced. The McGowan Labor Govern...
Read More
Mar 16, 2023

Ready To Buy Your First Home? Here are some top tips...

Entering the property market and buying your first house can seem daunting. It is impor...
Read More
Oct 17, 2022

Building Costs Surge After Short Term Retreat –...

  After 2-3 months of slight relief in new housing build costs, a significant surg...
Read More
Nov 04, 2022

Suburb Property Profile: Broadbeach, QLD 4218

  Thinking about building a new home in Broadbeach, Queensland? Our Suburb Propert...
Read More
Nov 25, 2022

Interest Rate Outlook Improves For Borrowers –...

The RBA announced that it would be increasing interest rates in May 2022 in order to co...
Read More
May 06, 2020

Victorian Government Extends First Home Owners Grant...

The Victorian State Government has announced that they will be extending the $20,000 Fi...
Read More
Oct 30, 2019

Buying A Home? Plan Ahead For These Hidden Costs

It can be too easy to become swept up in the excitement of buying a property, that you ...
Read More
Nov 11, 2022

Build Costs Still Rising in a Housing Markets Spring...

  The spring selling season is now well advanced, with growing signs over October ...
Read More
Apr 10, 2019

How to design your interior through your travels

Whether it be the blue’s and the white’s of the Greek Islands or British Colonial Style...
Read More
Oct 25, 2022

New Home Building Not Moving Fast Enough to Keep Up ...

  Australia’s capital city housing markets are now clearly confronting an emerging...
Read More
Jun 17, 2020

Claiming the HomeBuilder Grant? Here are 5 things to...

New Information As Of Sunday, 29th March 2020 - The Morrison Government announced an ex...
Read More
Nov 30, 2020

Morrison Government Extends HomeBuilder Grant For A ...

This article was originally published on iBuyNew.com.au and has been reproduced here wi...
Read More
Jul 01, 2020

Available Homebuilder & Homebuyer Grants, Schem...

This article was originally posted on www.ibuynew.com.au If you’ve been thinking about ...
Read More
Mar 30, 2022

Boost for first home buyers in the 2022 Budget.

Last night’s Federal Budget had some great news for Australians looking to enter the ho...
Read More
Mar 17, 2023

Ready To Buy Your First Home? Here are some top tips...

Buying your first home is an exciting experience, but it comes with making many big dec...
Read More
Jan 24, 2023

Housing Markets Down in 2022, But Far From Out ̵...

Mixed Bag for Home Prices Over 2022  In 2022, national house prices were predictably lo...
Read More
Aug 29, 2019

“Fears” That Trick Us Into Not Investing...

For most, investing in property is an uncertain and overwhelming process. Amidst all th...
Read More
Aug 09, 2019

Plantation Homes’ – House For Life Chari...

There is nothing more heartbreaking than hearing about children suffering in hospitals....
Read More
Feb 04, 2020

Building A New Home? Make It Sustainable!

If you’re thinking of building a new home, there are many reasons why you should make i...
Read More
Mar 15, 2020

Suburb Property Profile: Busselton, WA 6280

Beautifully surrounded by clear blue ocean and pristine sandy beaches, the prominent su...
Read More

Get more from

Browse Land for Sale