Should You Build or Buy a Home in Australia?

Posted by Jonathon Deakins on November 11th, 2020

Should You Buy or Build a Home?

A prime consideration when saving or allocating money for a home is whether you should buy or build one. There is no short answer to this, however, as there are various considerations when deciding between building a home from scratch and purchasing one that’s move-in ready.

If you’re torn between these two choices, going over the pros and cons of each alternative might help.

Pros of Building a Home

There are many advantages to buying land and constructing a new home than purchasing a ready property. Here are some benefits:

1. Built according to preferences

Planning, designing, and building a brand-new home means getting one built according to your requirements. You have creative control over the design and layout of your residence. You get to decide how much space is allocated for the sections of your home and which materials to use. It's also a better option if you plan to raise a family and see yourself living in the same place for decades.

2. Reduced maintenance and energy costs

New homeowners today have a lot of choices for building an energy-efficient home.

By utilising green building practices that incorporate natural lighting and ventilation, solar energy systems, and other similar features, you’re setting your home up for long-term savings. Moreover, maintenance and repair issues may be covered by a warranty.

3. Everything is new and built to standard

With a newly constructed home, you do away with the need for repairs or replacements anytime soon. It will meet current building codes, and you won't have to worry about the presence of toxic materials like lead paint and asbestos.

Of course, there are also downsides to going this route:

Cons of Building a Home

Of course, building a new home carries some disadvantages. It takes patience and a lot of planning and coordination with the architect, designer, and construction team. It is also more time-consuming and costs a lot more.

Pros of Buying a Home

Some people prefer to buy a ready home rather than get one constructed, primarily because of the following benefits:

1. Location and land

Most existing properties enjoy being in choice locations, usually close to the city centre, facilities, and established infrastructure. So, you’re likely to be living in a place that’s near commercial districts, hospitals, and schools and access to public transportation. You’ll also be in a community with established gardens, parks, and trees.

In addition, existing homes usually sit on bigger parcels of land and come with landscaping. So, you need not worry about the extra expense of designing and getting the landscaping done.

2. Move-in ready

Buying ready property significantly shortens the time between locking in the purchase and moving into your new home. All you have to do is to pay the deposit and decide on the move-in date. 

3. Investment potential

If you’re purchasing a ready property for investment, it’s usually the more practical choice. With a few quality strategic upgrades here and there, you could add substantial instant value to your investment property.

Cons of Buying a Home

However, buying ready property can also mean expensive renovation or repair work. Additionally, older homes may be functionally obsolete and would require substantial redesign and remodelling work.

Building or buying? Don't skip this essential step: building inspection.

Whether you'll build a new home or buy one that’s move-in ready, one step you shouldn’t skip is a building inspection. It helps ensure you’re moving into or buying a property that is safe and hazard-free.

New home construction inspections and pre-purchase building inspections both safeguard new homeowners and buyers of ready homes from property issues. After evaluating the home structure, drainage, HVAC, plumbing, electrical and insulation systems, and other key features, the building inspector provides a report of their findings.

One good example in Australia is the Houspect website, which offers building inspections across Australia.

You can then approach the builder or seller and present the report so they can address any issues before you close the deal. It may cost a little extra, but a building inspection is your assurance of safety.

There is also plenty of useful information found on government pages such as the following:

https://www.nsw.gov.au/living-nsw/housing-and-property/building-or-renovating-a-home