Buy or build?
Should I buy or should I build? If you are asking yourself this common question the information below might help to make your decision a little easier.
Building a home
The process of building a home can be both satisfying and frustrating. Here are some of the pros and cons to be aware of if you're considering building a new home.
| Pros |
Cons |
- You can design the home to be exactly as you want it
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- You are buying your home sight unseen as you cannot actually see the final result until after it is purchased and constructed
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- Everything in the home is brand new and therefore under warranty
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- Building can sometimes be delayed due to weather conditions
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- New homes are often constructed in new subdivisions, meaning all the other homes around yours are also brand new
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- There are often extra costs to be considered such as window coverings, landscaping and fencing
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- New homes are often "greener" than established homes due to new energy efficiency regulations
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- It can be quite expensive to equip an established home to be more energy efficient
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Tips for building a new home
- Insist on the builder using standard building contracts, approved, if appropriate, by building industry groups
- Do not sign a building contract without knowing the contract price and what is included in the price
- Ensure you are provided detailed plans and specifications, with any variations noted
- Check that a progress payment plan is outlined in the contract
Buying a home
Buying an existing home can seem like an easy and straightforward process. However, as with building a new home, there are pros and cons to consider.
| Pros |
Cons |
- Buying an established home allows you to see exactly what the surrounding houses look like and how well they are maintained
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- If it is an older home, you may need to budget for repairs, re-painting and general maintenance
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- Often all or most of the work to establish the home, such as landscaping, has already been done
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- You may need to perform renovations or extensions to get the floor plan or space you need
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- Often you can move into an existing home as soon as you have bought it
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- Older homes can be more costly to heat and cool as they are often less energy-efficient
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Tips for buying an existing home
- Decide what you can afford and what you need
- Get independent valuation advice before buying a property
- Insist that the real estate agent uses industry contracts
- Do not sign a contract without knowing the contract price and what is included in that price
- Be aware of the five business day cooling-off period (not available on auction) and the cost if you change your mind
Signing the contract
- It is unwise to sign any legal contract without first obtaining qualified legal advice. Ask your solicitor to look at your contract before you sign it, especially if it is not a standard industry contract or clauses have been added or deleted.
- As you will probably not already have final loan approval, any contract should be conditional on the approval of your finance
