It’s the age-old home buyer question. Is building a new home the right move or is spending your money on an existing home the better option?
Building or buying a home is a big step and commitment, it’s something that shouldn’t be taken lightly. With that in mind, we thought we’d take the opportunity to look at the benefits of building a new home over buying an existing property.
The satisfaction of moving into and owning a home that by all definitions is truly yours is incomparable. Building a new home allows you to have the home of your dreams. What could be better than the feeling of moving into a home that you were a part of from the start? You have the chance to personalise and customise many aspects, making sure your new home matches specifications that suit your lifestyle and needs. Add to this the relief of not having to search and search for a home that ticks all your boxes and it’s easy to see how even this alone is a massive benefit to building new over buying existing.
Many people don’t know this but when building a new home you avoid a big cost that otherwise you’d have to pay. That cost is transfer duty (once known as stamp duty) Transfer duty is a tax paid to have a property transferred into your name. As opposed to paying tax on the total value of the property when buying an existing home, you only pay transfer duty on the value of the land when building. This can save you tens of thousands of dollars and shines a bright light on building over buying.
It’s Brand New
Renovations can be a costly and strenuous task. More often than not an existing property may need renovations or work to make the home suitable to your situation and taste. If you choose to build, everything in your home is brand new, with that come warranties on inclusions and craftsmanship. This adds peace of mind that you just won’t have with an existing home. Unexpected and expensive issues can arise, and costly things to fix such as plumbing and foundation work can make what may have seemed like value at the time an expensive nightmare. They are many unknowns with an existing home that you just don’t have when building.
The Australian Government offers a First Home Buyers Grant. The grant offers new home builders and buyers $10,000 towards the purchase price of the property. The benefit here in building your home is that the home must be new and not have been previously lived in to receive the grant. Alongside this incentive, the Australian Government also offers the First Home Buyers Assistance Scheme. This entails full or partial exemption of the previously mentioned transfer duty. With benefits like this available, you can potentially save more money again.
With all the strong points mentioned it’s easy to see why people are opting to build over buying a pre-existing home. There are numerous financial benefits and many ways to save money, add to that the sheer feeling of excitement and pride in living in a brand new home, a home which you had a hand in from the start, and it’s easy to see it truly is a smart option.
At Meridian Homes, we have over 50 home designs in multiple formats to ensure we cater to all your home needs. Contact us here to find out what we can do for you!