Buying a home is an exciting endeavour. There are many things to consider about the kind of home you are looking for, such as the location, the size, and of course, whether you would like a new build, or an existing build. Depending on your goals, you may prefer to focus your search on one or the other.
In this article, we will break down the pros and cons of buying a new build, vs an existing home.
Pros of a New Home
New Homes are a great choice as they are warm, dry and generally have lower maintenance. They also tend to have more modern designs and layouts, and even some added luxuries such as a butler’s kitchen. If you are involved with the building process, you can often take part in the design process and include some of your own preferences, needs and tastes.
New builds tend to have cheaper insurance as they are more straightforward. This can help lower your bills!
New builds are also a great choice for first home buyer benefits. If you are eligible for the First Home Grant, you can get up to $10,000 towards the purchase of a new build. This is twice as much as what the grant offers for buying an existing house. If you are buying with another person, you can combine your grants and enjoy up to $20,000 towards your deposit.
Cons of a New Home
Buying a new property can be an expensive journey. One of the disadvantages can be that, if you are involved in the building process, you may end up stuck waiting for the long process to be completed. You also may be required to make payments during the process of the build, meaning that you are making part mortgage payments while still paying rent, or for your current home.
Pros of an Existing Home
The advantage of an existing home is you’ll have more certainty of the purchase price, and of the settlement and move in date, because it’s already there. With an existing home, you will not start paying the mortgage until you officially take ownership of the property. Established properties tend to have grown out and mature gardens, and are often part of an existing neighbourhood. This can be great for families wishing to settle children into a community. Existing homes also have the plus of their own unique characteristics and lifestyle. They can often be on larger sections, too.
Cons of an Existing Home
The disadvantage of an existing home is they don’t have as many government benefits as new homes. If you are eligible, you can receive up to $5,000 with the First Home Grant. Older homes tend to need more maintenance, which costs more time and money. Be sure to get a detailed and professional inspection of the property to make sure you don’t fall in love with a property, only to come across surprise issues down the road.
Older homes tend to also have less desirable layouts. Most modern homes embrace the open plan layout, so that you can make a salad while talking to a loved one in the living room. But older homes are less likely to have these open-plan features.
Lastly, existing homes can also have more expensive insurance!
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