When it’s your time to enter the property market, will you buy a pre-existing house, or will you build a new one? Of course, this is a loaded question, there is no correct answer and it all depends on your needs and desires.Buying a pre-existing home has its advantages and its downsides. More and more people are choosing to build their new home, but there are some pitfalls that can be avoided. So, built or bought? which approach is right for you?
Buying a Pre-existing home
Buying a home that has already been built is the most popular choice in Australia and for many reasons. Applying for a house loan is simpler, but more on that later. Buying this type of home has several distinct advantages over building and some unfortunate downsides. Let’s have a look at the pros and cons of buying a pre-existing house.
Pros:
You are buying into an established area. When you buy a pre-existing home, chances are you are also buying into an established neighbourhood. This means you will have access to water and power with no hassles. You may also be closer to public transport and amenities. Some well-known and loved areas simply don’t have any more room for new dwellings, so if you wanted your own slice of the action you will have no choice but to buy a pre-existing home, of course you can always knock down and build your own Immediacy. You can attend the open house, feel the homes fittings and fixtures. Smell its paint and test out anything you had doubts about. As there are no building stages, you can compare home loans, and know exactly what you will be paying. You can be approved for a house loan and move in almost straight away.
Cons:
The advantages of buying a pre-existing house also can work against you. The first disadvantage being, you don’t get exactly what you want. Your house has been built by someone else who put their tastes into the design. This could be an advantage if you love the design, but buying a pre- existing home gives you no room to be creative. The history of the home you are buying is unknown. Sure, you might know who lived their previously, and you can see and touch the dwelling yourself, but are you 100% sure some hidden (and expensive) problems aren’t lurking underneath your new homes pretty paint?
Building a new home
Building a new home is a more involved process. First, you must acquire some land, which will work almost like applying for a house loan. After you have done a home loan interest rates comparison and purchased your block of land, you will then enter into a contract with a reputable builder. This method of home ownership is becoming more and more popular, and with new parcels of land being released every week, the opportunities for building your dream house are almost endless like buying a pre-existing home, building a home has its benefits… and its drawbacks.
Pros:
The first and most obvious advantage is your home will be brand new! This is huge for some people. Knowing that you are the first people to live in the house is exciting. The home’s history is known thoroughly, and depending on your builder, your home could have a warranty. This all adds up to peace of mind.Knowing that there isn’t any costly repairs or maintenance lurking around the corner is one of the biggest advantages of building a new home. Another significant advantage of building new is, It’s yours! When you enter into an agreement to build a new home you will work alongside the builder. At a basic level, you can choose from a few pre-set house designs. If you are wanting to put your own stamp on the house, the chance is there for you to do so. Building new also carries some financial rewards. Some sources indicate that building a new home works out cheaper than buying a pre-existing one. If you are a first homeowner, you will be entitled to a $10000 rebate if you choose to build. Because a home is built in stages each with their own loan (like a house loan) the project can be managed easier.
Cons:
The building takes time. You won’t be able to sign the dotted line and turn the key, you will have to wait. The process of building is at the mercy of the elements, so rainy windy days can halt progress. If you have bought some land and are looking to build a house on it, chances are the land you have bought is in an up and coming area, not an established one. Whilst a lot of community developers will see that their housing developments have all the modern amenities, again, building takes time. Hidden costs is something that catches a lot of people out. Be very wary and budget for these hidden costs. When building a home, it is between you and your builder what features are included in the price. Some builders will include fencing, landscaping, some do not. Be very careful what you are signing up for, in some cases the company will build the basic structure and that’s it. To outfit your home with premium fittings and fixtures, give it a nice driveway and air-conditioning might seem like a must, but it could also blow your budget out. Always read the fine print and don’t be afraid to discuss what is and isn’t included in your quote.
Whether you are buying or building your new home, the market has never been better. Modern building techniques mean you can have a well built and attractive home without going bankrupt. Having said that, sometimes, they just don’t make’em like they used to. If you are a first-time homeowner you will have access to benefits that will make the whole process even easier.Good luck, and happy house hunting!
This is a collaborative post
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