First Home Buyers
Upfront costs of building a new home versus buying an established house
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Better Way 2 Build research has shown there are three main reasons that people want to buy their own home:
They want a place they can call home.
They want somewhere to bring up their family.
Owning a home is considered a better option than renting
While these are strong motivations for owning a home, there are differing views on whether it’s better to build a new home or buy one that’s already built. Because home ownership is such a big financial investment, the costs of building a new home versus buying an already built one is naturally a significant factor.
According to financial comparison website finder, it’s often cheaper to buy a block of land and build a home on it compared with buying an established property. However, it’s important to note that building a house presents other potential challenges, such as long construction times and limited availability of vacant land in established suburbs.
On the plus side, there are several advantages to building a new home compared with buying one – particularly if you are a first-time buyer:
Personalisation. You have more control over the design and finish of your home.
Lower maintenance. A new home will need less maintenance upfront.
Stamp duty. This can be a substantial cost but is waived in WA.
Modern features and appliances. You choose materials, lighting, and heating and cooling, incorporating the latest, energy-efficient technology.
And, while you might know what you’re getting when buying an established home, the costs associated with improving and maintaining existing homes can be high. For example, renovation costs across Australia are rising fast and are expected to continue to grow over the next year or two.
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To help in your decision-making process, here’s a breakdown of the key costs in building a new home or buying an existing one
Below is a guide to the upfront and ongoing costs of purchasing an existing property and building a new home in Western Australia. This is general in nature and all costs are approximate. You will need to do your own research on the property beforehand depending on your own financial situation.
