It’s time to discuss the biggest house debate of history – building a new home or buying an established home. For a first home buyer, it’s important to review all of the benefits of buying an established home and a brand new home before making your final decision.
Established House
Government Initiatives
As a first home buyer, you may be eligible for the Federal Government Initiative First Home Loan Deposit Scheme to own an established home. As long as the property’s attribute fits within the criteria, including the relevant price cap, you can apply for the First Home Loan Deposit Scheme. For a Queensland Government Initiative, the First Home Concession, also referred to as Stamp Duty Concession, can be claimed for your first home for transfer duty if you meet certain requirements.
Time-Efficient
Looking at an established home may be a better option for a first home buyer if they are required to move into the home urgently instead of waiting between up to 6 months for a new home to be constructed. If you do your research and are actively in looking at houses for sale, you will know exactly what you are getting and can be more confident in your decision rather than feeling hesitant and confused. This confidence will motivate you to comply with any requests regarding the home until move-in day when the home officially becomes yours!
Established infrastructure
Location may be a very important factor for you when you decide you want to purchase your first home. Since an established home is already built, it will most likely be in an area with existing infrastructure and facilities like schools, shopping centres, employment opportunities and public transport. The established home may be closer to the city centre compared to a brand new home as it can be rare for vacant blocks in inner-city areas to be available.
Brand New Home
Government Initiatives
As a first home buyer, there are Federal Australian Government and State Government Initiatives that can assist you in your first home purchase. Although you may already have a large deposit saved, this support is only available for your first home so you will only receive it once if you are eligible. Two examples of the Federal Australian Government Initiative are the HomeBuilder Grant and First Home Loan Deposit Scheme. The $15,000 HomeBuilder Grant is available for all eligible future homeowners with a Grant to build a new home. The First Home Loan Deposit Scheme supports first-time buyers to own their first home with as little as a 5% deposit without needing to pay LMI (Lender’s Mortgage Insurance). An example of the State Government Initiative in Queensland is the First Home Owners’ Grant. The QLD First Home Owners’ Grant allows first-time buyers to use $15,000 towards their home deposit.
Warranty
Speaking from experience, there is nothing worse than realising there is a leak under the sink or an electrical issue. If there is an issue or any defects with the new home, you may still be covered under the Builders Warranty Insurance. Builders Warranty Insurance provides you protection, as the homeowner, under circumstances if you have any troubles with any works that have been or have not been conducted by your builder. To find out the duration of your Builders Warranty Insurance, refer to your Build Contract or contact your builder.
Creative Control
Since the home hasn’t been built yet, the creative opportunities are endless! For an established home, it could be very expensive to restyle an established home that suits your needs and desires. Before you purchase your new home, you have the power of creative control of the home’s specifications. This means you can choose to customise the home by making your entertainment room bigger, moving a wall, type of flooring, kitchen layout, etc. Whilst you may get excited with this creative control, it is important to stick within your budget and make reasonable changes.
Time Frame
Depending on the urgency of moving, you are the one who is in control (within reason of course)! If you are in a rush, you control how fast the finance process will take by how soon you submit the requested documents and how responsive you are. For the builders we recommend at Queensland Property Group, the average building timeframe for a new home is between 16-20 weeks. If you have around 6 months remaining of your current lease or still living at home but know you are ready to become a homeowner, this timeframe is very flexible! You won’t be in a rush to pack up your belongings and move into a new home, you will be given an approximate day of house completion and you can plan to move accordingly.
If you are interested in owning your first home and would like to discuss your options, please contact us on 1300 248 514 or email [email protected].