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.
- 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