Building vs. Buying: Which Option is Right for First Home Buyers?

As a mortgage broker, I understand that buying your first home is a big deal. Many of us dream about building a place that ticks all our boxes. Sometimes, buying an existing property makes the most sense. Both choices have pros and cons - and in this article, we’ll help you decide!

Building Your Dream Home

Building a new home is an exciting prospect. It allows you to customise the space to your exact preferences, from the layout to the finishes.

The pros:

1. Personalisation: Building offers the freedom to design a home that matches your lifestyle and needs perfectly. You can choose the layout, materials, and features that matter most to you.
2. Energy Efficiency: New homes are often more energy-efficient, leading to lower utility bills and reduced environmental impact. You can incorporate the latest green technologies and insulation techniques.
3. Warranty: A newly built home typically comes with a builder's warranty, providing peace of mind in case of construction issues or defects.
4. Government Grants: In Australia, first-home buyers may be eligible for government grants and incentives when building a new home, which can significantly reduce the overall cost.

The cons:

1. Cost and Time: Building a home can be more expensive and time-consuming than buying an existing property. Construction delays can lead to additional expenses.
2. Stress: Managing the construction process can be stressful, especially for first-time homeowners.
3. Location Limitations: You might be limited in your choice of location as land may not be available in your preferred area.

Buying an Existing Home

Buying an existing property can be a faster process that often requires less planning and effort.

The pros:

1. Convenience: You can move in sooner, often within a few weeks. Building a property can take a very long time!
2. Established Neighbourhoods: Existing homes are usually located in established neighbourhoods with amenities like schools, parks, and public transport.
3. Certainty: You can see exactly what you're buying, including the layout and condition of the property.

The cons:

1. Limited Customisation: You may need to compromise on certain features or invest in renovations to make the existing home fit your needs.
2. Maintenance: Older homes may require more maintenance and potentially costly repairs.
3. Resale Value: Resale value might be lower than a new home, and you may need to purchase upgrades to increase its value.

Making the Right Choice

Ultimately, the decision between building and buying comes down to your circumstances and priorities. Here are some steps to help you make the right choice:

1. Assess Your Budget: Determine how much you can afford, factoring in not only the purchase price but also ongoing expenses.
2. List Your Priorities: Make a list of your must-have features and preferences for your new home.
3. Research the Market: Explore the housing market in your desired area to see if existing homes meet your criteria.
4. Consult a Mortgage Broker: Work with a knowledgeable mortgage broker to find the best financing options for your chosen path.
5. Consider Future Plans: Think about your long-term plans, such as how long you intend to stay in the home and potential resale value.

Here at Finselect, our goal is to help you navigate this important decision and secure the financing that suits your needs. Whether you choose to build your dream home or buy an existing property, Team Finselect is here every step of the way.

If you have any questions or need further guidance on securing a mortgage, please don't hesitate to reach out and book an appointment with us!

Disclaimer: This article is for educational purposes only and not professional financial advice. Please seek personal advice before making any financial decisions. The views expressed are the author's own and not affiliated with any organisation. The author is not responsible for any losses or damages resulting from reliance on the information provided