Are you looking to invest in your first home, but aren’t sure whether to buy an established house or build? It’s a tough decision to make, and it is vital to weigh up the pros and cons of each decision according to your own personal circumstances. Money, time, customisation, and return on investment are all important elements to consider before you make your choice.
Do the sums
The First Home Owner Grant is a big pull for many of those making a decision on their first home. The grant is up to $10,000 for those who buy land and build a new home, or for those who buy an already established home that hasn’t previously been lived in. The grant is dependent on a number of different factors, and is a great way to get a headstart on payments. However, it’s important to do the sums on the whole package, particularly if you are building; from the down payment, to building fees, site testing, landscaping, insurance, and interior design. You may need to pay rent while your house is being built, and loan payments will begin from the day that you buy your block. Purchasing a new or established home can be a more affordable solution, as there are no hidden fees or add-ons; everything is locked in during the settlement process.
Check your watch
Building a new home can take anywhere between six months to a year, depending on the weather, your builders, and other external influences. If time isn’t a factor, building may be the right choice for you; just ensure that you factor in extra time on top of what you are quoted to be on the safe side. If you are considering buying an established home, the waiting period is generally minimal and you will have more control over the move-in date. If you are searching for a home but want to wait out a current lease or take a few months to get your affairs in order, you can negotiate with an agent on the settlement date to ensure the financial side of things works in your favour.
Return on investment
In the Australian property market, established homes can currently be purchased for significantly less than it would cost to build them at today’s costs. The potential for return on your investment in the long run depends on many different factors: the property market, your home’s location and structure, your home’s design. Established homes often already come with a slew of extras from previous homeowners that add to their value; air conditioning, pools, landscaping. When building, depending on your budget, those features can be added in from the get-go. Those extras are often the elements that provide a great return on investment; so it’s important to take them into account.
At ACTON Real Estate, our expert property agents represent homes for sale in Perth that cater to diverse preferences. Get in touch with the team at ACTON today to find your dream home.