Build or Buy Your Next Home? We Weigh the Pros & Cons
There are few things in life more exciting than raising a family in your perfect dream home. However, one crucial decision lies ahead of you before you can take any further steps – will you buy or build your next new home?
It’s a question as old as ancient buildings. Do you go through the effort of construction to get the perfect space for your family, or do you buy a ready-made property that might force your loved ones to get comfortable with a different version of their dream home?
We understand how overwhelming planning your next property move can be.
To help you decide, we’ve developed a list of pros and cons for buying vs building a home. Read on to gain some confidence and clarity for your next real estate investment.
The Pros and Cons of Building a House
Building a custom home from scratch is quickly becoming the best way for Sydney locals and newcomers to get exactly what they want in a market that is hotter than ever. Not only can you make the most of your land, but you will also have a home that suits your needs and style down to the finest details.
However, there are some things to keep in mind to give both yourself and your home builder the best experience.
Pros of Building
You will get exactly what you want from your home
Nothing beats custom homes for those with unique and particular desires. If you have a clear vision of your dream home, with specific features, points of difference and luxury inclusions, you will get exactly what you want from a home build. And if it’s your forever home, why not make it perfect right down to the fine details?
You can create a home around your lifestyle
There are several ways people use their homes to suit their lifestyles. From the dedicated entertainer to the gym buff, there are plenty of ways to customise your home to suit how you will use it best.
With a blank slate to create, you can add on a custom built granny flat to earn a passive rental income or give a home to extended family members. It’s also a great way to increase the value of your property long term.
Or you could take the opportunity to create that extra bedroom or larger living room you’ve always dreamt about. Your new home can be anything you want it to be!
Choose the perfect block
Have you always driven by the houses by the lake and dreamt of taking up occupancy? Or perhaps you crave a comfortable suburban life spent keeping up with the Joneses. Building a home allows you to be picky when choosing a site, and in collaboration with your home builders, you could end up with a lot that is as perfect as the house that will be perched upon it.
Flexibility of budget
When building a custom home, the potential for saving money may not be the first thing that comes to mind. But, in reality, the ability to save on costs and the flexibility of choice is a perk enjoyed by many custom home clients. Don’t like the price of the kitchen materials but want to spend more on home automation? Keen to save on energy bills by including solar power? You can choose where to spend your money.
Choose the best quality appliances, fixtures, and inclusions
While we’re on the topic of flexibility, you don’t only get to choose how many rooms and the orientation of the floor plan in a custom home. You can opt for luxury inclusions, high quality finishes, modern appliances and stylish fixtures to create a home that you will love and that functions perfectly.
Less maintenance, repairs and renovations needed
If you need to renovate or repair after your custom home build, something has gone horribly wrong! One of the biggest perks of building a new home is that everything is, in fact, brand new. This means your repairs and maintenance needs will be minor or even non-existent, with warranties potentially saving you thousands in the first few years.
Cons of Building
Building a custom home can have a higher cost
There is no getting around it; building your home from scratch will cost some pretty pennies. Several factors will impact how much your home build will cost, including location, size, design, the complexity of the customisation and the added extras, along with the availability of materials and cost of labour.
A construction loan can be complicated to understand
To finance building a home, you will likely need a construction loan, allowing you to draw down at certain stages of the build. This can be overwhelming for first home buyers, as it differs from a typical mortgage. But, of course, the advantage of working with an experienced custom home builder is that they will know the construction loan process like the back of their hands and can walk you through it.
The building process may take longer than a simple house settlement
While buying a house isn’t always simple and straightforward, it is generally a matter of signing the right contract and fulfilling the required waiting periods. Unfortunately, this kind of simplicity isn’t an option when building a home, with designs and plans needing your collaboration and approval and the process hinging on materials, labour and other variables.
The Pros and Cons of Buying a House
If you’d rather not build your next home, browse through the pros and cons of buying a pre-built house.
Pros of Buying
One of the most significant advantages of buying a house is the convenience and overall process speed. Families can view the home before deciding and research the history of the home, seeing with their own eyes the potential standards and environment they are investing in. For some, this appears to present less risk than building a home.
Often quicker than building
Aside from some important contracts and decisions, homebuyers can enjoy a pretty fast turnaround. You could potentially put in an offer and move in almost immediately, making buying an ideal solution for those on a tight timeframe.
The price might be more predictable
Home buyers can find comfort in researching the areas they’re considering for their next property move. You can often get a clear picture of the potential cost of your home by using similar homes in the area as an example. This can help you make an informed decision to suit your budget and goals for the appreciation of your investment over time.
Landscaping already in tact
Generally, existing homes will come with the landscaping already established. This can provide much-needed shade and save some room in the budget. Without the extra cost of landscaping materials to budget for, it may be easier to add on a granny flat to your property to increase your home value.
Cons of Buying
The home may need a renovation or improvements
Unfortunately, it is very rare to find a home design that perfectly suits the vision you have for your home. Certain aspects of the house may need updates or upgrades. There may even be issues that need addressing before you move in. In addition, you may risk skyrocketing power bills and inefficient functionality if the appliances and connections are older.
The inclusions and appliances may be old
Older homes come with older elements such as wiring, plumbing and electrical. Additionally, the appliances and inclusions may be outdated and need repair. If you are purchasing an older home, you will need to pay for inspections to ensure everything is in working order and repair it if it isn’t. This can quickly add up to some unexpected expenses.
The floorplan won’t be customised
One of the most significant benefits of custom home designs is that you can control the look, feel and function that perfectly suits your family. Of course, with a pre-built home, you won’t get to make these selections, meaning you may have to adjust what the picture of your dream home looks like.
Ready to build your home? Get in touch with our team
We hope you have the information you need to move forward with your next property decision. If you’re ready to build a custom home, our our sister home building company in Sydney, New South Homes, can help.
Browse their display homes to start your home journey with New South Homes!
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