It’s a tough question. In the end, either way will give you a house, however, there are advantages and disadvantages to both, so it is important to find the right option that will suit you.
The key is knowledge. The more you know about either building or buying a property, the better chance you will have at succeeding.
Buying a house is a popular choice as some people consider it an easier option. They may think all you need to do is pick a house, go to the real estate office and sign a contract, but there is a lot more to consider.
One of the major advantages of buying is time. After settlement, you are usually able to move into your house straight away. Building a house tends to have more delays and you cannot always work to a timeline. Another advantage is location. Existing houses are usually apart of established suburbs with shops, schools and access to public transport. However, if you are planning to buy a new house, the development may be further out.
Although buying a house may seem convenient, there might still be some work involved. Every house needs maintenance, maybe not straight away, but there could be some renovations needed in the future, particularly if it is an older house. Also, unlike building a house, you may not have the exact design you want. So, you may have to live with the kitchen or living room design that doesn’t quite match your furniture, that is unless you decide to renovate.
You have worked hard to save for a house, so why not get exactly what you want? Building allows you to do that. You can pick the layout, design, colour schemes and landscape and can include anything that would suit your lifestyle. It may sound like a lot more work than buying, but it doesn’t have to be. For example, if you like the look of a display home, many builders offer pre-designed plans. Another advantage is that the house will be brand new. So it is extremely unlikely that any repairs will need to be done until many years down the track.
As many of the major cities are already full, developers need to move further out. This means that new suburban areas may be further away from shops, school and public transport.
Although the government may be advertising a new shopping centre being built in the area, there are usually delays and you may be waiting for months after you have moved in.
Your house may also experience delays. There have been so many cases of people building a house and a builder has set a deadline, but then they are delayed by months. It is important to do your research on builders and ensure they can be trusted to follow a schedule.
It is also important to point out that the Government is also offering bigger benefits for first home buyers who decide to build or buy a newly built house. For example, in Queensland and NSW, there is a $15,000 grant available to eligible first home buyers. So this is a great incentive to build a new place. Different states will also offer stamp duty concessions for building your new home (price caps apply).
No matter which option you choose, it is possible that there will be some glitches on the way. Buying or building a new house is a huge task and you need to make sure you are financially and emotionally prepared.