Building vs Buying a Home - Options for First Time Buyers in NSW

Advantages to building a home

Full customisation

Building a home from scratch allows you full control in creating a space tailored to your individual preferences, ensuring every detail aligns with your vision. From layout and room sizes to fixtures and finishes, you have the full control to design your dream home.
 
Modern features

A new build often incorporates the latest energy-efficient technologies and design trends, potentially reducing utility costs and enhancing comfort.
 
Less immediate maintenance

New construction typically comes with warranties on major systems, offering peace of mind and potential savings on repairs.
 
Potential cost-savings

When you build a home there are government grants you may be eligible for. These include the First Home Owner Grant, First Home Buyers Assistance Scheme and Shared Equity Home Buyer Helper. You might also save on stamp duty, because when you buy land to build on, the stamp duty is based only on the value of the land.

Disadvantages to building a home

Costs

Building a home can sometimes be more expensive upfront due to land purchase, design, and construction costs. However, these costs can be offset by potential long-term savings.
 
Time-consuming

Construction can take several months to a year, depending on the complexity of the design and any potential delays. Factors that might hinder progress include the size and design of the home; approvals and permits; the readiness of the site to start construction, and the weather.
 
Risk of low quality construction

You should always work with a credible builder, take a look at our Huntlee-approved options for a list of experienced companies. Failing to find a suitable builder could lead to low standards of construction and the potential for a budget blow-out due to unforeseen costs.

Advantages to buying an existing home

More time efficient

The home buying process is generally faster than building so that you can move into your new home sooner. This is ideal if you need to move in quickly.

Accurate expectations

Generally speaking you know what you’re getting, you can see it for yourself. When you go to an inspection you’ll get a feel for the layout, design and functionality of the property. You’ll be informed of the general condition of the house and be made aware of any potential structural flaws, maintenance issues, or history of pest infestation. 

Potential for Renovation

You can still renovate an established property, although it will involve additional costs.

Disadvantages to buying an existing home

Limited customisation

While you can personalise any home to an extent, you will never have as many options as would if you build from scratch. You can of course renovate and make modifications, but it's harder to control design elements like layout, room size and living space.

More maintenance and repairs

Existing, or older homes typically require more maintenance and repairs, potentially leading to higher costs in the long run. This is largely due to issues with wear and tear, and also because the quality of products tend to improve over time with rising standards of manufacturing.

Existing style - the existing style may not align with your taste.