Adelaide real estate has been one of the country’s strongest performers in recent years...
But escalating property values have caused many home buyers to ask the question: should I buy or build a home?
The decision to buy an existing home or build is being made increasingly often, as urban development presents more opportunities to build and the cost of buying outright becomes prohibitive for some buyers, particularly first home buyers trying to get a foot in the door.
Real estate in Adelaide is a good long-term investment, but it pays to consider the pros and cons of buying vs building so that you can make a decision that best suits your personal circumstances.
Benefits of Building
Ability To Create Your Dream Home
When you build you can incorporate everything you want into the design, which you may not be able to find in an existing home.
Stamp Duty Savings
When you buy land and build significant savings can be made, particularly on stamp duty as it is payable only on the value of the vacant land.
First Home Owner Grant
A one-off $15,000 first home owner grant is available to eligible first home buyers purchasing or constructing an eligible property such as a new home or a substantially renovated home.
Ongoing Savings
New home designs meet stringent energy efficiency standards for ongoing savings on your energy bills.
The Downside to Building
Time Constraints
Unless you can live rent-free while your property is being built, it can be an unaffordable exercise if you are paying instalments on a new build as well as rent.
Stressful
Building can be stressful if you are time-poor as there are many decisions which require your time and energy.
Unexpected Costs
Building a home comes with risks, such as unexpected costs and delays caused by severe weather events, unanticipated siteworks issues or delays to the supply chain.
Benefits of Buying
You Know What You’re Getting
When you buy outright you can see exactly what you are getting, with the help of a building and pest inspection.
You Can Move in Promptly
A typical settlement period is 30 days, so there is a minimal wait to move into the property and no doubled-up accommodation costs.
Improve At Your Leisure
Established homes can be renovated as your budget permits, improving your living experience and the value of your asset over time.
Disadvantages of Buying
Higher energy costs
An established home may not be as energy efficient as a newly-built property so the ongoing running costs may be higher.
Not Your Dream Home
An established home may not be designed perfectly for you, whereas building enables you to tick every wish-list box.
Maintenance Costs
An older established home may require updates, repairs or improvements which require budgeting for.
