Do you want to live in your own house? The decision of whether or not to buy a new home is an important one. It can be difficult to know what the best option for you and your family is, but there are many pros and cons associated with both buying and building a new home. This article post will discuss the pros and cons of building and how a property valuation will help make an informed decision about which route might work best for you!
It's important to speak with a professional that has industry experience and knowledge of what property related requirements you have to best tailor our valuation services to ensure you receive the best outcome for your future investment.
Pros of building a home:
First Homeowners Grant
As a first home buyer, buying a freshly constructed home off-plan that has not yet been lived in you are eligible for the grant, depending on the state or territory you plan to build a property you may or may not be eligible for the grant.
When building a home from scratch you are not required to pay stamp duty on the house, only on the land you have acquired. This also applies to newly built homes that have not yet been lived in before.
In saying that, there are other costs to consider when you build that buying an existing home doesn't entail, such as fences, driveways, and a garden.
Building Your Dream
Majority of potential buyers end up building instead of purchasing a property as there might not be anything currently on the market that suits or is what they are looking for. Even though it may be cheaper to purchase a property, you would need to consider how much you are willing to spend on renovations to make it "just right" to suit your lifestyle and meet your property expectations.
New homes are built from new materials and are fitted with the latest appliances so many of these houses are more energy-efficient, saving money, and are contributing to saving the planet in the long run as well.
Cons of building a home:
Building takes time
When you build a home, you have to account for the amount of time it will take to complete the property with approval to move in. It takes an average of 7 months for a property to be built from scratch and depending on the size and complexity of the build this may take longer to complete.
Many loan lenders have certain timeframes for borrowing money, construction timeframes for completion can range from 6 months to 24 months.
You can’t move in straight away
Even though you've purchased the land and have started construction, you need to factor in that it will cost you to live somewhere else until the property has been completed and signed off.
if you can move in during construction you are guaranteed to be surrounded by chaos until the property is completed.
No Fixed costs
When building, there are various costs involved and at times this can spiral out of control as there can be various aspects that may arise which can delay the process as well as costing you more to fix. Many builders may not include all the fees either, do your research and check your building contract for any inclusions that you may need down the track.
Keep note any modifications made throughout the process can prove costly, these costs may involve:
Architect, builder, or engineer drafting fees
Builder penalty fees
Legal fees to alter the contract
Always be prepared and double-check prior to construction that everything meets your requirements so there are no surprises during construction that may affect your budget as well as the timeframe for completing the property.
Is it cheaper to build or buy?
It all comes down to the type of home you want. Building a home can be a cheaper option for almost all property types, if you can find a developer selling the type of property you want off-plan or land that is ready to build if you are looking for something specific building might be the better option. Just keep in mind the timeframe of construction until you are able to live in the property.
If you are looking for something straight away and aren't willing to wait the 7 months for building, buying a property would be a better option, you are still able to stay within your budget, but keep in mind all additional costs like mortgage repayments, renovations, stamp duty, etc.
At the end of the day, it all comes down to what your property requirements are, it's recommended a property valuation be completed when purchasing a property or looking into the land to build a home.
The valuation report will provide a true value of the property as well as any external factors that come into play, these reports are detailed and comprehensive with market research to help determine the best decision to make that best suits any property-related requirements you may have and the future investment of the property.
Samantha Grant – LinkedIn Profile
Samantha Grant is a specialist in her field and has been working within the property valuation industry for over 20 years. As a Senior Valuer, Samantha is an authority in all forms of residential, commercial, and industrial valuations and has served as an expert witness in high profile litigation proceedings. Samantha’s professional knowledge is often utilised in industry conferences, seminars as well as performing guest lectures as an industry expert.