When you start thinking about owning your first home, one of the first questions you’ll ask yourself is should I buy an established house or should I build a new one.
While it’s not always an easy decision, it should be one that you give careful consideration to. Here are some things to think about while deciding between buying or building your first home.
When you’re buying a home, you need to factor in things like a deposit, stamp duty and conveyancing costs.
As first time home buyers (or builders), WA offers financial incentives in the way of the First Home Owner Grant and Duty Concession. They vary depending on whether you are building or buying established too. There are specific terms and conditions which need to be met to qualify for this though and they can change over time – speak to your financial advisor to find out what you qualify for.
Costs of buying an established home are fixed – once you’ve agreed a sale price, that’s what you will pay. When it comes to building, it’s easy for costs to spiral out of control if you aren’t on top of your plans. Many builders don’t include things like flooring, landscaping or internal painting so make sure you tick every box before you sign on the dotted line.
This is a big factor when it comes to the decision as to whether you should buy or build. If you are dreaming about living in a particular established suburb, there may be limited availability of plots for building. There may even be no vacant plots available at all. This might mean building is not an option for you if location is a non-negotiable for you.
However, if you’re happy to move a little further afield to newer areas which are building hotspots, you’re likely to find a myriad of more affordable options when it comes to building a home. Blocks are often smaller though than in the established areas.
New builds are more prevalent in newer areas which may still be under construction – not just the homes but the infrastructure as well.
If you want to live in an area which already has things like schools, medical centres, and shopping centres, established areas are far more likely to provide you with those facilities.
There is no doubt that buying established is a lot quicker than building a home. Building can take several months from start to finish so if you don’t want to wait around, buying an established home may be more appealing to you.
If you want to move into a house that is completely finished to your taste and interior decorating style, you may be leaning towards building your own home.
Established homes come in all shapes, sizes and colours and it’s fairly rare to find that perfect home where you move in and don’t want to change a thing.
Renovating can also be expensive so if you know you may end up spending thousands on new kitchens, bathrooms and other cosmetic changes; buying an established home could end up costing more than you think.
If you want to become a home owner, speak to us about our personalised strategy for individuals and couples looking to save for their first home. We’re here to help you become homeowners without taking on more than you can afford.