Buying VS Building
The essential advice before building or buying your first home
What type of buyer are you? This is a considerable question to ask oneself before becoming a property owner. As a first homeowner are you to buy a pre established house or build a new house? All first home buyers should seek some investment loans advice before taking the plunge and purchasing a property.
It is no secret that it truly this decision is personal preference however, there are many benefits to both options. So when the time comes, you have a final decision and a clear vision allowing The Loans Cafe can assist you with your financing needs.
When building a home, the added benefits include, lower running and maintenance costs, in addition to warranty and of course, the newest and latest appliances technology and home systems. Sound like they way to go… right?
A big pitfall with new properties is that despite what is marketed to you, you will often have to pay a premium. Remember that developers are driven by profit, thus needing to add a margin, of which marketing costs incurred are added to your total bill. This may mean it takes longer for the property to grow in value. Despite the fact that you don’t have to pay stamp duty on the construction and building component of a house-and-land package, you will still be obligated to pay GST.
Getting finance for a new home is also more complex, as part of your borrowings is likely to be a construction loan, which will be drawn down during building when the lender is satisfied specified works have been completed.
However, established homes have three incredible main benefits; location, point of difference and resale value. The saying goes “LOCATION, LOCATION, LOCATION.” If you’re looking to buy in an established suburb, then purchasing an established home is often your key to entry. Buying an existing home also has a point of difference and uniqueness that can often not be replicated by mass produced homes and apartments, which attributes an increase in resale value.
After assessing buying vs building, there are pros and cons for both options depending on individual preferences and circumstances. Book an appointment to talk to one of our friendly experts at The Loans Cafe, to determine what’s best for your individual needs.