Buying an established home vs building a new one: What is right decision?
When looking to buy a home, whether it’s for you to live in, or as an investment, the biggest decision you will have to make is whether to purchase an established property or buy land and build a new home from scratch.
Both options are good ones – each with their own benefits. However, ultimately the decision will boil down to what your key priorities are for your new home.
Whilst there are some amazing homes available on the established market, chances are the choice of tile in the bathroom, colour of the kitchen splashbacks, roof tile or bricks may not be to your liking. Sure, these can be replaced and fixed over time, but renovations can be expensive – even if just cosmetic. So, make sure you have room in your buying budget for those down the track. Buying new of course means you can pick all those things yourself, so if you really love bright pink bathroom tiles you can have them!
Been to hundreds of home opens and wish there was an extra bedroom or the lounge room was at the back of the house, not the front or that the bathroom wasn’t so close to the kitchen? Again, whilst layout elements of a home can be changed through renovations over time, this can be expensive (and often more expensive that you first think!)
With an established home, 9 times of out 10 there will be a compromise to the home’s layout, whilst building new you get to pick the layout that fits your lifestyle now and into the future.
New homes are more likely to be built to a higher energy efficient standard. Even land developers consider the way blocks face towards the morning and evening sun when they develop the land.
Building new means, you can consider solar passive orientation, building materials that assist with energy efficiency as well as PV panel systems, grey water systems and more.
Maintenance woes not your cup of tea?
If you have stretched yourself to get into a new home, the last thing you want is to be outlaying money on maintenance. A distinct advantage with building a new home is knowing you won’t have to put any money towards upkeep for the next few years. Also your builder will have warranties in place for structural items and building defects, so you know any future major work is taken care of.
How quickly you need your home
Buying an established home can often be a quicker process than building a new house. Once finance has been approved, building inspections done and settlement goes through you could be in an existing home in around a month. However, if you can wait a few extra months you might find that building your own home doesn’t take as long as you think. With a lot of titled lots in the Perth marketplace right now and some great pre-approved house and land packages on offer you could be in a brand-new home in under 6 months.
First Home Buyers Grants
If you are a First Home Buyer, you can apply for the First Home Owners Grant and receive reduced stamp duty, which can make a big difference when doing your initial budget. Often building a new home can be a lot more cost effective, when these concessions are taken into account.
Some folks argue that an established home is more likely to be close to established services such as shops, transport, schools and parks. Whilst this may have been the case 20+ years ago, the good news is new WA housing developments are popping up that are close to existing facilities and under 15-20km from the Perth CBD.
Proximity to services and facilities is often important and a good investment decision too.
At Wildwood at Carramar, you are located just minutes from Joondalup's thriving Town Centre, close to schools, public transport and the beach is not far too.
Value for money
For many people the thought of building a brand-new home can be a bit daunting. It can be more time-consuming and there are lots of decisions to be made (albeit fun ones!)
However, because of this there is generally less competition for that block of land you have your eye on … and builders of course can build your home along with many other peoples at the exact same time. This means you can often get a lot more value for your money.
There are so many factors that can impact whether buying an established home or building a new home is the best decision for you. Only you will know what your key priorities are and each option has benefits worth considering.
If you would like any further information on the process of building a new home, get in touch with Tony on (08) 9485 1100.