If you think of buying a home like purchasing a car, then your decision is much easier. Your primary focus is your needs, when buying either. So, when you look to buy a dwelling make a list of your requirements first. Then, decide whether a new home or an established best suits these needs. Lets compare the two now, so you can choose which is best for you.
An established home is a dwelling built by someone else. These properties can be near-new, or may be years old. Thus, if you are seeking to buy a house, then these are typically situated on larger blocks closer to the city. Plus, amenities and infrastructure, such as schools and public transport, surround an established home.
Other advantages are as follows:
Larger block sizes. Land sizes vary for established homes, but these are still bigger than todays new house and land packages. Many established homes have back and front yards along with a good-sized dwelling. Although, if you wish to replicate the same with a new build, then this will cost you a great deal.
Able to move in quickly. Buying an established home means that you can often move straight in after settlement. Settlement can take place within 30-days, which means that there is minimal disruption to your life. Purchasing a new home, however, takes months. In addition, you may encounter delays and other problems during the building process that can delay construction further.
The home comes complete. Established homes come finished so you can move straight in. Of course, not all decor may be to your liking. However, over time you can make changes so that your home accentuates your taste. Consequently, the beauty of this is you do not have to make changes at once, so its budget friendly. Furthermore, established homes have landscaping, which means you do not have to put in a garden.
Greater potential to add value.You can also add a great deal of value to an established home by making upgrades and renovations. Whereas a new homes value may take longer to appreciate.
Shortcomings of buying an established home include:
–This home may not be exactly to your specifications.
–You may have to repaint and make improvements to the property.
–Mistakes or problems may need repairing.
–Most problems with your home are not under warranty.
Positive aspects of buying a new home are:
Design and land choice. There are a vast number of builders in Australia and a range of house and land packages available. So, your choice is wide.
First home buyers grant and builder incentives. As a new home buyer, you may also be eligible for a grant or other new home incentives. These deals can save you thousands, which can make buying a home more cost-effective. Additionally, you are also able to choose builder incentive packages. Such benefits include fixture and fitting upgrades, air conditioning and higher ceilings.
Investment depreciation. If the property is an investment, then you can depreciate items within the property over your years of ownership. Subsequently, tax benefit can shave thousands your tax bill.
Increased energy efficiency. New homes must follow current energy laws and legislation. Therefore, your home will use less energy than an established property.
Drawbacks of buying a new home include:
– Building the home takes time.
– Issues with building can occur, such as finding bedrock under your foundations. Thus, problems can increase your expense.
– Construction and the processes leading up to building can be long-winded and confusing.
– You will need additional funds to complete the home, which can add up.
Are you looking to buy a new or established home? Compare home loans today.
Written by eChoice
Since 1998, eChoice has helped more than 50,000 Australians secure a home loan through its network of over 25 lenders and hundreds of loans. Best of all our service is cost and obligation free!