Buying established or building from scratch?
With both the Federal and State Government announcing various building bonuses for those looking to build their next home, choosing whether to build or buy established is still a big decision for many home buyers. Deciding between the two ultimately comes down to your personal preference, circumstances and financial situation.
Buying an established property
While there are incentives to building at the moment, there is nothing wrong with buying established, with people who buy established usually finding this option more convenient than building new because all the hard work is done.
Another drawcard of buying established is that there is no lengthy wait time before moving in and it is a great way to buy into an older suburb that has very few blocks of land left.
For those that work close to the city, buying in an older suburb reduces commuting time and costs, with some outer suburbs where house-and-land packages are available, potentially adding an hour each way just to get into the city.
While property listings have reduced to levels not seen since 2014, there are over 10,000 properties listed for sale on reiwa.com, which means there are numerous options out there to suit your lifestyle needs.
Building a new home
On the other hand, those who prefer to build from scratch say the extra cost and effort is worth it in order to have a home that is tailored to their specific wants and requirements.
Building a new home also provides the opportunity to include some of the latest trends or environmental features that may be absent from established stock.
In some cases, people choose to build in Perth’s outer suburbs because house block sizes can potentially be larger, which gives you the option for a bigger backyard or installing a pool.
More information
If you are considering building, you may be able to qualify for the Federal Government’s HomeBuilder scheme providing $25,000 to those who sign a contract to build before 31 December 2020, the WA Government’s Building Bonus scheme providing $20,000, plus the First Home Owner Grant of $10,000.
It’s also important to note there are a number of restrictions on who can apply for the different schemes, so if you are still torn between building or buying established, it’s worth speaking with a local REIWA agent or a REIWA buyer’s agent about your options.
An agent will be able to provide you with information about the locations you are interested in and help you to decide which option is best suited to your situation.
Author: REIWA President Damian Collins
