Should you build or buy a home?

When you're looking for a new home, one of the biggest decisions is whether to build a new one or buy an existing property. Each option has its own benefits and challenges, and understanding these can help you make the best choice for your situation.

Building a home lets you design everything to your liking, from the layout to the finishes. You might save on stamp duty and qualify for grants if you're a first-time builder. However, building can take a long time, face delays, and come with unexpected costs.

Buying an existing home means you can move in right away and enjoy established amenities. Older homes often come with larger yards and you know exactly what you're getting. But they might need renovations and could have higher maintenance costs.

Here are some pros and cons to help you decide:

Building a home

Pros:

1. Customisation - design your dream home within your budget and regulations.
2. Stamp duty savings - pay stamp duty only on the land, not the house.
3. Lower maintenance - new homes often come with a builder’s guarantee and are more energy-efficient.
4. Grants - first-time home builders may qualify for grants.

Cons:

1. Time-consuming - building takes months or years and requires your involvement.
2. Delays - construction projects can face delays.
3. Unexpected costs - changes and unforeseen issues can increase costs.

Buying an existing home

Pros:

1. Immediate availability - move in quickly after purchase.
2. Established infrastructure - existing homes are usually in developed areas with amenities.
3. Larger land - older homes often come with bigger yards.
4. Predictability - you know what you’re getting with an existing home.

Cons:

1. Outdated features - older homes may need renovations.
2. Higher maintenance - more wear and tear can mean higher upkeep costs.

Making the right choice

Your choice depends on your needs and priorities. If you decide to build, consider getting pre-approval for a loan to help with budgeting.

Talk to one of our mortgage advisors today to explore your options and get started on your journey to a new home! The FinancePath team is here to help you make informed financial decisions and find the best solution for your needs. Reach out to us today get expert advice tailored to your unique situation.

Call us at 1300 780 440 or book a 10-minute chat.