Are you searching for the best housing option in the hotspots of Australia? There are multiple options in the housing market but first-time home buyers often get confused between buying an established residential property or build a dream home from scratch.
There is no denying that both options have their own benefits and limitations. So, the decision largely depends on individual’s specific requirements, budget, location preference, amenities and housing structure.
Having a house is one of the most expensive investments a person makes in their lifetime. So, it is important to consider all the key aspects, make comparisons and choose the most suitable option. It is good to hire experts for a precise property valuation service in Australia to ensure the current market value of properties. This will help you make the financial decision without any stress.
Here are some of the key differences between buying vs. building a house and the influencing factors.
1. Understanding the Budget Difference
This is one of the crucial factors to consider when making the right housing decision in Australia like Sydney, Melbourne, Perth, etc.
Buying a House:
The upfront cost of purchasing a residential property is cheaper than building from scratch. However, you will need to deposit 20 percent of the property’s price in advance, stamp duty and closing costs. Plus, there is always an ongoing maintenance if you choose to live in an apartment setup.
Building a Residential Property:
This particular option involves higher initial cost, such as land purchase, unexpected construction expenses, building permits, etc. However, you can’t deny the benefits of a long-term investment that can give you higher returns in the future. The best part is that you can create an energy-efficient house to save maintenance costs.
2. Hand Over Duration / Time
Buying a House:
The process of buying an apartment or a spacious house is relatively smooth and quick. You can search for the most suitable property, complete the due diligence involved in the residential real estate industry and move into your new abode within a few weeks or months.
Constructing a House:
In this process, you need time, money and patience. The building process goes through multiple stages, including design approvals, budgeting, construction completion and final touches. This could take around 1 to 3 years depending on diverse factors.
3. Personalisation
Buying a Property:
An already established residential property comes with restricted renovation or customisation options. However, you can make major changes which can be expensive and time-taking.
Building a Home:
There is no denying that building a house gives you a complete control over the process, layout, design and other key features. You can personalise each room, including the yard area and create your dream space.
4. Property Value and Location
House Buying Option:
Apartments and well-established houses are located in the developed residential hubs. They have high-end amenities, nearby schools, healthcare facilities, public transport, malls and entertainment centres readily available.
House Building Option:
Lands for constructing a dwelling is often located in less crowded and popular locations. You may not leverage the benefits of well-established infrastructure facilities and other local amenities. Remember that the resale value of a newly constructed property in Australia is based on the location’s growth and market trends.
Wrapping Up
These are some of the key differences to understand when buying or building your own house. If you want to live in an established neighbourhood or looking for an affordable and less stressful option, opt for an already constructed home. However, if you want to a dream home which is according to your specific requirements, go and purchase a land for a residential property. Make sure you conduct a property valuation and make the right decision accordingly.