Buying your first property can be a complicated and confusing process. Whether you’re buying for yourself or as an investment, there are a lot of options to consider and decisions to be made. And one of the biggest is, do you choose to build new or buy an established property.
Both of these approaches have their benefits and will be well suited to certain buyers. Both also come with some considerations and can present challenges in certain situations. So… which option is right for you?
The pros and consof buying an established property
As the name suggests, an established property is one that’s already completed when you buy it. It’s broadly defined as having been owned or occupied by someone else for at least 6 months.
As a first home buyer, there are a few advantages to choosing an established home. This includes:
· You know exactly what you’re buying.
· You maybe able to move into, or rent out, the property straight away.
· There may be the potential to add value through renovation.
· It will most likely be in an established area with existing local amenities, like public transport connections, schools, and supermarkets.
· Itmay have established landscaping, improving the street appeal and sense of hominess.
On the flip side,there are also a couple of potential draw backs to buying an established property. This includes that:
· Established properties can require a lot of work to modernise and customise to your (or local renters’) preferences.
· There’s a greater risk of hidden issues that could require ongoing maintenance.
· If the property is in an established area, it could attract more buyer interest and maybe more expensive.
The pros and consof building new
A new build is a property that has never been lived in before. While it’s possible to buy onethat’s already complete, they are usually sold “off the plan”. This means that you:
· Can help shape the design, making sure it suits your (or local renters’) requirements.
· Will only need to pay stamp duty on the land component, potentially saving you thousands of dollars.
· Don’t need to worry about repairs or renovations as everything is new.
· Maybe able to incorporate energy efficient technologies into your design to help minimise your ongoing costs.
However, there are a few less positive points you need to be aware of when considering a new build.This includes that:
· You may be waiting months, or even years, before the place is completed and ready to move intoor rent out.
· Everything from bad weather to issues with sourcing raw materials can blow out your build timeline or budget.
· New builds are usually located within new sub divisions, which are often on the outskirts of a city and have limited amenities.
So… which should you choose – anew build or an established property?
As the above shows, there’s a case to be made for both new builds and established properties. As such, the best choice will really depend on your situation, your plans, and what you’re after.To work out what this is, we recommend asking yourself these questions: