If you’re entering the property market, seeking to upgrade to a luxury home or considering an investment build, building from scratch will benefit you in the long term rather than buying off the plan or a pre built.
One of the main reasons why homeowners prefer to build a home to live in or have as an investment is because they can increase the value of their home over time while also customizing it to their own preference. An added bonus is not having to worry about old plumbing, wiring and appliances breaking down for a while.
Why build rather than buy?
For newly built homes valued up to $750 000 most states or territories can receive between $10,000 - $15,000 from state governments, in NSW this is known as the ‘First Homeowners Grant’.
When building your dream house there are things to think about, such as:
- Stamp duty on your property.
- Loan settlement costs from a previous mortgage (or transferral fees).
- Cost of preparing the site for a build.
- Planning fees, including going to council for approval.
- Finishing costs (account for approximately 25 percent of your total budget).
- Cost of the build itself.
In saying this, according to Domain Group the median cost to buy an established home in Sydney is upwards of $1 million AUD. This indicates that the cost of building a new home will end up saving you a lot more than buying, in fact you can save an average of $400 000 AUD by choosing to build.
The cost of building versus buying are significantly different and a newly-built home will allow you to make the layout and design suit your specific needs and tastes. You have no restrictions as to which materials you wish to choose to suit your style. In addition, some lenders offer ‘home construction loans’ meaning you are eligible to receive funds in instalments instead of a one off lump sum. This will help with tracking costs and budgeting to maximise savings and minimise your total building cost.
On the other hand buying an established home means you may not be able to renovate or modify it in the way you desire. It may also require you to spend quite a bit on repairs or styling. Another thing to keep in mind with older homes is that they may require a thorough inspection of plumbing, wiring and installations before you decide to go ahead and buy.
Therefore, while cost is one issue there are more things to take into consideration when making the decision to build or buy so speak to our experts at We Build Australia. We will not only draw up, quote and build your house but also aim to stick to your budget as closely as possible.