Buying or Building: What's Better in 2020 (Part One: Building a New Home)

Buying or Building: What's Better in 2020 (Part One: Building a New Home)

October 30, 2020

Yes some people are struggling through the COVID-19 restrictions, anxiously waiting for jobs to be restored and finances to flow, others though are not just coping, they are thriving through the chaos.

For those people with double incomes who previously enjoyed living life to the full, they may have found themselves suddenly cashed up with all the lockdowns. When you can't spend money on holidays, going out and partying, well you might just find you suddenly have $30,000 extra dollars in your bank account. That right there is a very good looking first home deposit. Now all you need to do is secure your own home before the borders reopen and you treat yourself to a five-star holiday in Fiji.

So what steps are best to take. Do you buy land and build your home the way you want it, or do you buy an existing property, ready to move in?

There are of course pros and cons to each of these choices and we're going to run through them here for you to have you a starting platform for knowing which path might be most suitable to your needs.

In this post, we'll briefly cover the ins and outs of building your own home.

Keep an eye out for part two that gets into buying an existing home.

Yes, I'm going to build: What to watch out for

The land is everything

Location is the only thing you have to go on when it comes to buying land. After that is the size and shape of the property that you need to consider, which may put limits on your build design and size. Mostly the location is everything. So make sure you do your homework, then do it again to make sure what you buy will work for you in the long run.

Things to check to ensure you are paying the right price and that the location will work:

-Proximity to amenities like public transport, shops, schools and entertainment
-Ability to get power, water and sewage lines connected
-Soil drainage, soil quality, flood history, bushfire history

Build times

It takes time, lots of it for that home to be completed. Expect delays when you are calculating the costs or inconvenience of waiting to move in. Factor at least a year before your move to know if this is something you can effectively manage. When you're starting the building process, it might be fun to see the slab go down and take progress pictures but there is a long time still to go.

Special notes for Package Buys

If you are going with a builder house and land package then the location is something out of your control. While you can choose the locations within the building estate, for outer city locations you will be far from the CBD, you will be reliant on shops and schools in the area that might not be built yet.

Community Restrictions

There is a long list of dos and don'ts when living in a community estate. Landscaping at the front and driveways being some of the factors that will affect what you can have and where you can have it. Make sure you read every bit of fine print and know what that will mean for your lifestyle as well as your build times and choices.

Factor in commute times and cost

Do take into account commute times if you are going to continue working in the CBD, and look at work from home options your workplace might have, even if it's just two days a week.

It's well worth taking public transport or making the drive as you would if you were living there to see what transport and traffic conditions are like. Bumper to bumper for 20 kilometres might not be your cup of tea.

Need some breathing space?

Be aware that package homes might not offer a lot of privacy. Yes, your house is enormous but every millimetre of space has been used on building so you can practically reach out and borrow your neighbour's sugar right from their kitchen window. If you were hoping for a roomy yard for the kids or dog to play in, you may find buying an existing property is a better choice.

The Perks of Building Your Own Home

It's brand new!

Is anything better than walking into a brand new home that has never been lived in?

As well as being all yours completely from scratch, and it being dent and scrape free, your pristine home is modern, sound, with no hidden decay or deterioration to take you and your wallet by surprise. Everything works! It means you'll also be maintenance free for a while. It is best to check the fine print carefully to understand your warranty rights. You may also find home insurance costs are lower as there are fewer hazards and possible mishaps.

You can build to your needs

This is the real winning factor when it comes to building your own home. Layout, design, style and finishes as well as those extras like underfloor heating, French doors, walk-in robes. Everything is at your fingertips. The only limit is your budget.

In the established home market finding a property that fits exactly what you want can be time-consuming, frustrating or downright impossible.

Building your own means you can get the home you want and know upfront what choices you have available, where you can cut corners and tailor a home that is the perfect fit for your tastes, needs and budget. Wide door frames for wheelchair access, five bedrooms, home office, basement theatre room. It's up to you.

Extra grants for COVID-19 stimulus

As well as first homeowner grants there are currently a range of varying new build grants. This means if you are eligible, building your own home just got a lot more affordable.

For those who are not finding the COVID-19 restrictions so rewarding, knowing others have saved quickly and effectively is your motivation. Knowing you can go without for a short time and miss those breakfasts out, morning coffees and pub gatherings will put you in the right mindset to put those extra dollars aside and work towards owning your own home.

Need a conveyancer in Albury? Contact us now to set up an appointment.

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