The pros and cons of a new build
If you’re looking for your dream home, one of the first big decisions to make is ‘will you build a new home or will you buy an existing one’?
And it’s a tough decision to make, with both having their own unique pros and cons. So, in this article let’s walk through the new build process, looking at the pros and cons of constructing your home from scratch.
New build benefits
There are many benefits to a new build and creating your dream home from scratch is a true adventure that many people look to embrace at some point in their home ownership journey. So, let’s kick off by considering the pros.
Over recent months new builds have proved particularly popular, and that’s in no small part due to the government incentives involved such as HomeBuilder, the various state government First Home Owners Grants and first-time buyer stamp duty exemptions.
Aside from the potential to reduce the cost of home ownership, new builds also offer the opportunity for true personalisation, allowing to build the home you want in the design that suits.
There’s also the benefit of the new home warranty which protects you in case of structural defects in your new home.
In some cases, building a new home may also prove more affordable than purchasing an existing home, especially if you opt for a house and land package.
But as the cost of building a home varies greatly depending on what you’re after and the state you’re in, you’ll need to be crystal clear on your budget, factoring in land price, build cost and accommodation as you wait for your new home to be constructed.
New build drawbacks
While all the above are definite positives, there are a couple of drawbacks that need to be considered as you start sketching out all the things you want of your new home.
With land a bit of a scarcity around Australia’s CBDs, chances are your new build will be located a little further out of the city, but this may not be a deal breaker depending on where you work and what you’re looking for.
If you are seeking a city block, they can be expensive and might involve the removal or demolition of an existing house. In this instance costs can quickly add up.
When it comes to new builds, there’s also the time factor. A new build can take anywhere from six months to a year and beyond to complete.
In the interim you’ll be footing the bill for your current accommodation, while also likely managing the rising debt of a construction loan as you draw down on it to pay for work completed.
Factors beyond your control
You know what they say about the best laid plans…well even if you’ve set a schedule and have brought on board the most reputable and committed of builders, things can take longer than expected.
Whether it’s due to delayed council approval, a month of wet weather, or a labour shortage, it’s important to factor in and budget for potential delays.