Are you considering buying or building a home?
We completely get it… some decisions are easy to make, like what kind of milk you want in your coffee or perhaps what to eat for dinner. But then there are decisions that take a lot more time and consideration, like the complex decision on whether you should build your home or to buy an already established one.
With a lot of information and opinions out there, there’s no doubt that this is an extremely tricky topic that can often cause some anxiety for future homeowners. While there are pros and cons to both, such as; budget, accessibility, personal preferences, timing, and many more variables, in this blog we dive deeper into some of the advantages and disadvantages are of both options.
We understand that this decision is a very complex one, which is why we pride ourselves on working with all types of customers who are considering a multitude of options for their dream home. If you’re considering buying a house v building, we wrote this blog to help you make an informed decision on this significant first step in your journey to home-ownership.
Is it Cheaper to Build or Buy a House?
Whilst buying a house may seem traditionally cheaper, it can be relatively affordable to buy a piece of land on a block size that accompanies your dream home, rather than purchasing an already established home. This can depend on where you buy the land and on the type of community and area you’ve chosen to live in.
If you choose to buy land slightly further on the outskirts of town, you will have the option of a bigger block and a more spacious area in comparison to building in an inner-city suburb. That being said, if you own the land already you also have the option to Knockdown and Rebuild your home, which is a very popular option at Porter Davis.
Costs of building a house
There are costs to factor in when you build a home, such as land price, construction loan settlement fees, stamp duty, building costs and more. You will get an idea of the cost when you receive an initial builder’s quote, which depends on the house design you choose.
However, some builds are completely turnkey or fixed price, meaning there are no hidden surprises and the cost is all set from day one of the build process. It is best to work within a budget that suits you, but one that also meets your needs of building a home that is perfect for you and your life.
Costs of buying an established house
Buying a home can be expensive, especially given the recent rise in housing costs all over Australia. But, unless you want to do some major renovations as soon as you move in, it’s likely that after the purchase, you will limit your significant home costs to just your mortgage payments.
It’s more than likely that the house you may purchase may be an older generation home, meaning it won’t comprise of the latest technology and safety features that are factored into a new build. Sometimes there can be some added costs in building a new home, however, they are always communicated to the customer and more often than not, they are still somewhat cheaper than a major renovation to an older home.
Disadvantages of Building a Home
A commonly known disadvantage to building a home, can include possible time delays due to supply or chain issues.
While many homes have fixed prices or get built according to plan, there can be some delays in the building process, including weather delays or more recently supply shortage, which can slightly increase your overall cost and build timeframe.
Another drawback can be that most open spaces available for individual purchase can often be quite far away from the city or town, meaning you won’t always get that community vibe straight away, unless you’re considering a knockdown rebuild.
Advantages of Building a Home
A significant advantage of building a home is that you’re able to create your dream home that is tailored specifically to you and your lifestyle. Choosing all exterior and interior features, you will build exactly what you want in a home, as it’s styled to suit your lifestyle and preferences.
Whether it’s your ideal kitchen to cook up some incredible meals or an expansive living space to form some family memories , you can create something entirely for you and within your budget!
There are plenty of designs you can choose from, too, if you need a little guidance to help create your perfect home — you don’t have to entirely do it yourself, but work with expert builders and designers to create something unique for you.
Advantages of Buying a Home
When you purchase an already-established home, you can enjoy the benefits of a home that’s already built for sale, at 100% fixed cost and a faster move in time.
You’re able to rebuild and touch up some elements that you don’t like, such as kitchen renovation or a bathroom renovation, and the process is typically relatively quick, in comparison to an entirely new build. So this may be a better option if you have time pressure for whatever reason in moving into your new home as soon as possible.
These homes are set up in already-established neighbourhoods, so you’ve got a great location and community from the moment you move in. You’re able to get a feel for the area and community without waiting for a new community development to perhaps begin.
Disadvantages of Buying a Home
We’ve spoken a lot about touching up the renovations of an older house, but there’s also the disadvantage of outdated safety features and energy efficiencies. Our new build’s are all built at a minimum of 6-Star Energy Efficient rating, among other energy efficient features.
Older homes can be costly to run, compared to newer, higher tech savvy features of a build. Sometimes the longevity of a running an older established home can be more costly in terms of cost of running the home, in comparison to a new build.
You also won’t get the luxury of designing unique spaces and interior styles that suit your lifestyle, however you are able to purchase in a location you desire, based on your budget.
There is no right or wrong when building a home or buying one. Each choice comes with its advantages and disadvantages, so ultimately, it comes down to your needs, wants, and finances. Take the time to research both options thoroughly when you are looking to either move house or buy your first home, as it may surprise you what options are out there.
The choice is yours!
We have over 22 years of expertise to ensure you have the best home building experience possible. Enjoy the benefits of being the first one to live in your home with our range of options to suit your needs.