To build or to buy?

Whether you’re looking forward to owning your first home, or upgrading from your current property, deciding whether to build or buy is one of the first decisions you’re going to have to make. For many, and especially for first home buyers, building your perfect home can seem like an idealistic dream. For others, the thought of building their own home may not even cross their mind. Either way, knowing which is the right choice for you will depend largely on your preferences and priorities. Understanding the upsides and downsides of each can certainly help make your decision a little easier though.   Building If you’re set on getting your dream house, building will probably be the better choice for you. Constructing a property from scratch means you’ll have complete control over the layout, the fixtures, and the overall look and feel of your new home. The pros Personalisation The most significant benefit of building your own house, without a doubt, is the level of personalisation and customisation you can bring to the property. If you want a home that feels genuinely yours, there is no better way to get it. Flexibility of Design When building your home, you can account for any particular requirements you might have. Living with a wheelchair user with specific access needs? Wanting an eco-friendly property? You can customise your property to meet your needs exactly. Stamp Duty You will often find that the fees you will have to pay when building your own home are significantly lower than for purchasing an existing property. This is because when buying an established house, you will need to pay stamp duty on both the land and the dwelling, unlike on a vacant lot. Value for Money Aside from the fact that a newly built property is often worth more than the cost to build it, home builders tend to find that their dollar goes a lot further when building their own home as opposed to buying an existing property. The cons Location Restrictions Unless you’re planning on demolishing an existing dwelling, where you decide to build will be restricted to places where you can find a vacant plot of land. Inconvenience Have you figured out where you will love while your home is being constructed? Are you able to extend your stay there if something goes wrong and construction is delayed? While things can go wrong no matter which path you choose, buying an existing home tends to have less chance for delays. Time-consuming Building a home from scratch takes a lot of time, and this is definitely something you need to consider when making your decision. If you want somewhere to live right now, it might be time to reconsider your decision to build.   Buying A house doesn’t need to be custom-built to be a home. Purchasing an existing property is overall quicker, simpler, and more convenient. If you don’t have particular requirements and aren’t all that fussed about having a property tailored to suit your taste, then buying might just be the way to go. The pros  Cheaper Finance Options When buying a property, you don’t have to worry about getting a construction loan – a particular type of loan for those building a property that tends to have higher fees and rates. Instead, you’re likely to have a lot more options with more competitive rates. Convenience Buying an existing property means that in most cases, you know what you’re getting. Pre-purchase inspections will reveal any issues, and you don’t have to worry about potential delays from builders. The process is almost sure to be a great deal smoother and quicker. Location You will have a much easier time finding a property in your preferred area when buying a house if you’re interested in living in a more densely populated area. While vacant lots can be hard to come by, there’s almost always going to be a property for sale in every suburb. The cons Higher Fees As mentioned earlier, when purchasing an established property you will need to pay stamp duty on both the dwelling and the land it sits on. You can avoid part of this cost when building your own home for obvious reasons. Limited Customisation You will find yourself limited in the number of changes you will be able to make to any property you purchase. For those you can make, you’ll find yourself paying for them twofold – once for removing the existing fixtures and again to have the new ones installed. Existing Issues An existing dwelling might come with pest issues, or depending on the property’s age, you might find yourself having to deal with dated plumbing or wiring that will need updating sooner than you would like. Both buying and building are valid options, and in the end, your decision will come down to your personal preferences and requirements. Having a chat with a broker can be a great place to start to get an idea of what you can expect to borrow and what the loan process will be like for either option.