Homebuyer Advice: Buy Old or Build New in Property Market?

Personal preference is a major influence when people make a choice between building a new home and buying an established property. However, before making the decision it is good to know the distinct benefits of each option.

Build a new house
One of several financial benefits that first-home builders get is the $10,000 grant from the State Government. There is also the benefit of lower running costs owing to the use of solar energy, energy efficient lighting and water-saving devices that contribute to reduced utility bills.

A brand-new home comes with warranty, saving homeowners a lot in maintenance costs. Legitimate builders are required by law to provide warranty for a period of time, ensuring that homeowners are covered for any major failures.

In addition, a wider range of finance options are available for first-homebuyers through house and land packages.

There are also non-financial benefits, such as the addition of conveniences such as smart wiring, home automation and modern appliances. The indoor and outdoor living spaces in new homes are better integrated and typically have open plans that fit modern living.

New homes are also safe because there are smoke alarms installed in them and they are constructed with fire-retardant materials so fire won’t spread in nearby houses. Also, they have window height limits to avoid accidental falls.

Buy an established home
Old properties are the better option if the priorities for first-home buyers are location and resale value.

According to industry experts, this period in the real estate cycle likens new homes to brand-new cars, as they lose their value fast. They’ve seen some homes that were just a year old being sold for less than their replacement value.

Buildings continue to lose value over 50 years, but after that, they see a return in popularity and could start to increase in value again.

Most established homes undergo regular maintenance, and first-homebuyers could, at any time, add their own personality and style into the home through renovations.

Another advantage of established homes is that they are typically located in better and more vibrant areas. People could build in established suburbs, but the availability of vacant land in these areas is minimal and the price is often out of the reach of first-homebuyers.

Because of their good location, established homes are within easy access of essential amenities, such as public transport, schools, medical centres and lifestyle facilities. They are usually located near jobs as well as the homeowners’ family and friends.

If you have a specific real estate enquiry and are looking for more information, call me today!