Building a New Home vs Buying an Existing Home
Updated: Jun 18
You have been saving and waiting for this moment; it's time to buy a house! But which option is better? A new custom build or an existing build...?
There are so many different factors to consider when making this kind of decision. But keep in mind, there is no right or wrong answer, it all comes down to personal preference and what will best suit you and your family.
Here are some factors to consider;
The market value of existing homes is based on square footage, location, and quality, but when you buy new land, you're not only paying for those things, but you're also on the hook for additional construction costs, including the cost of having utilities, driveways, sidewalks, and sewer lines installed. These pricey items can boost the final cost of a new house 15 - 20% higher than the cost of a similar existing home.
Hidden costs can also be found when building a home that you weren't aware of at the start i.e. council approval, hold ups - having to pay people to do nothing while you wait for correct approvals if they fell through etc.
But hidden costs can also appear when purchasing an existing home. Some examples may include bathroom leaks, gutters not performing as they should, fences need rebuilding, retaining walls collapsed, cracks in foundation/walls etc.
When you are building a custom home, your build will take patience and time, lots of it. Building a home can take anywhere between 3 months to a year, or even longer, depending on a number of factors including; finance, approvals and issues that may appear along the way etc.
This also means that during that time period you have to be living somewhere else, whether that is renting, staying in a hotel or staying with friends or family.
When you are purchasing a house, it could be quicker as you only need to get your finances sorted to make an offer on a house, but you still need to find the right home and have your offer accepted.
As Australia's population increases, so does the amount of new homes built. The most common areas for new homes are a long way from the city and usually very small blocks, unless you get lucky. But chances are you new home build will be a decent drive away from the city, meaning your commutes will take longer.
Buying an established home means you have a bit more freedom to choose your desired location, without many restrictions. You will also be a bit closer to the city, meaning shorter commutes.
If you are purchasing a new home, your options will be limited and compromises might have to be made for some areas. e.g. number of car spaces, size of bedrooms, number of bedrooms, number of bathrooms, size of kitchen etc. However, nothing stops you from purchasing an existing house and renovating it to your liking.
If you are building a custom home, some compromises might still need to be made, but it can be more flexible. But remember your home needs to fit on the block of land.
This is where Morbuild can help, We can help make the process as simple and stress free for you as possible! We provide quality work and get the job done to your liking.