The Great Debate: Is it better to build a new home or buy an existing home

Whether you are looking at purchasing your first home, down-sizing from an existing property or investing in your next property, the question that always raises its ugly head, is it better to build or purchase an existing property?

What do we mean by a “new home”?

A new home can either be defined as a built home which has already been constructed and purchased directly from the builder or off the plan which is usually defined as a to be built house and land package.

Please note the distinct difference between constructed (only requires one contract) and off the plan that requires a separate land and construction contract and is not suitable for SMSF (self-managed super purchase)

An existing home is simply a home that has been lived in for a period of time and the transaction is handled between two parties generally by a licensed real estate agent through a private treaty.

With interest rate at record lows, a number of people have taken the plunge to purchase a new home. Here is what you need to know.

Building New (Advantages)	Purchasing Existing (Advantages)
Cost- generally cheaper than purchasing existing Tax advantages- stamp duty only payable on land Government grants- $15k grant start grant (First home buyers) Customise- new home can be designed to your requirements Warranties- structural warranties standard with all new construction Energy efficiency- insulation, sarking to walls + energy efficient appliances save electricity use and power bills Termite protection-requirement for all new construction Full depreciation for investors	Time frame- move straight in after purchase and settlement Amenities already in place- purchasing in an established area.

Building New (Advantages)

Purchasing Existing (Advantages)

Cost- generally cheaper than purchasing existing
Tax advantages- stamp duty only payable on land
Government grants- $15k grant start grant (First home buyers)
Customise- new home can be designed to your requirements
Warranties- structural warranties standard with all new construction
Energy efficiency- insulation, sarking to walls + energy efficient appliances save electricity use and power bills
Termite protection-requirement for all new construction
Full depreciation for investors

Time frame- move straight in after purchase and settlement
Amenities already in place- purchasing in an established area.

Building new (Disadvantages)	Purchasing Existing (Disadvantages
Time frame- may take slightly longer waiting for land registration and settlement Paying rent or mortgage on existing property during construction period	Energy efficiency- less energy efficient Tax- Full stamp duty payable on existing purchases No termite protection Safety- use of asbestos + lead paint in older homes could be harmful. Need for renovation- could add thousands to purchase price. Existing structural problems

Whether you are looking at purchasing an existing property or building it pays dividends to do your own research.

Building new offers the advantages of buying a brand new product that can be customised and moulded to your exact requirements.

The added advantages of government grants and low interest rates adds to the appeal of building a new home in fact there has never been a better time to build.

To discuss your option, please give me a call or visit one of our Rimfire Display Centres so we can take you through the process step by step.

Rimfire Homes 07 3152 7575.