What's the best option - building vs buying?
It's an age-old question; to build or to buy property? No matter which option you choose, there's pros and cons of both. Buying an established home: Pros Buying an existing house will deliver bang for your buck. The land size might be bigger than today's typical new land package, and there's no need to establish a yard from scratch. You can move in immediately and enjoy access to established infrastructure and proximity to town. You'll love the character and sense of history you get with older homes as well. From a financial perspective, established homes are generally cheaper than a new build, and you can add value easily with cosmetic improvements or small renovations. Cons But it's not all roses and backyard BBQ's when buying an existing house. You could be purchasing someone else's problem, and hidden issues might mean expensive repairs in the future. It's also hard to find an older home that will meet your family’s needs entirely. You might need significant renovations to make it work. You'll also miss out on modern inclusions like a butler’s pantry or even built-in wardrobes. Building a new home Pros Building a new home gives you a blank slate to work with. You get to make sure that every aspect of your new home works for you and your family. And you won't have spent all your Saturdays searching for the elusive perfect home. If you're environmentally conscious, a new build is an ideal opportunity to consider energy efficiencies and make environmentally sustainable choices. This is generally difficult to do in an older home. New appliances with warranties will give you peace of mind and issues with your new home will typically be covered under the building contract. Cons Waiting for your new house to be built can be one of the hardest parts of the process. It could take anywhere from a few months to a year. And more if there are unforeseen delays. You might have to accept smaller bedrooms and backyards than an established home and contend with construction noise from other houses being built in your new estate. There is also the risk of costs rising because personalised touches don't come cheap, and it can be tricky to estimate all costs in advance. And don't forget you'll need grass and gardens once the build is finished (and these can be costly). So, which is better? Each option has its promises and pitfalls, so it comes down to your circumstances and the needs of your family. Let us crunch the numbers and get you into your perfect home sooner. FINANCE FACT Choosing whether to build or buy can be a tough decision, and both options have their merits and challenges. A house purchase is a long-term decision, and you'll want to make the right one. Working out your borrowing capacity and your family’s current and future living needs can help determine which option you'll take.