Pros and Cons: Build a New Home or Buy an Existing Home?

Are you planning to move into a new home? You may be faced with two options: to build a new home, or to buy an existing home. Home builders in Melbourne will choose to either have an already built homes ready for occupancy or build new homes according to their unique preferences. So really, the choice is up to you. To buy or to build? To hire Melbourne builders or to visit open houses?

If you are on the fence about either of these choices, this article may be able to guide you. Read on to know the pros and cons of either choice.

Build A New Home

Pros

• Build according to your preferences

Perhaps the most obvious but biggest benefit of building a new home is that you get to decide exactly how you want it to be built. Everything from design to materials to HVAC system is entirely up to you (with guidance from expert Melbourne custom house builders, of course.) When you’re building new, you’re letting your new home reflect yours and your family’s uniqueness.

• Brand new lasts longer

With everything brand new, you’re looking at lower maintenance costs for repairs or renovations, and warranty takes care of possible damage as well. An existing home may be cheaper, but you would also be taking on the problems its previous owner had with it.

Cons

• Building new can be expensive

When you’re building new, you will definitely be spending a lot of money, but this is mostly because you want to spend on quality: experienced builders, durable materials, land and a good location, and more. You will also be dealing with tax burdens, volatile property values, and other similar land-related costs.

• Finding a good location may be a problem

If you’re looking to build on or close to CBDs, you will have a hard time scoring a piece of empty residential land. Most likely, the patch of land you can build on will be located further from your desired location.


Buy An Existing Home

Pros

• You have plenty of options

In the property market, most houses up for sale are located in more desirable areas, which means they are close to schools, shopping areas, banks, and other establishments you want easy access to. If you are not particular about the home type, Melbourne townhouse builders and developers have also created gorgeous townhomes that you can check out.

• Typically less expensive

Existing homes are much less expensive overall, but the best part is that there is wiggle room to negotiate the price. If you are on a strict budget, buying an existing home may be great for you.

Cons

• May cost higher on repairs and renovation

Whatever parts of the house need replacement or you just want to give it a facelift so it looks more like your house and not the previous owner’s, you will need to avail of repair and renovation services. Of course, this depends on the house’s condition upon buying.

• Materials or design might not be suited to your requirements or preferences

An example of how this can be a problem is this: what most homeowners are concerned with nowadays is that relatively affordable properties are houses built in the 70s and 80s – the heyday of asbestos. Most existing houses therefore may be built with asbestos-containing materials. In terms of design, you may want a more modern-looking house, or a house with a child-friendly layout, and you don’t necessarily get these with an existing house.


The in-between: Property flipping

This is a technique that is more familiar among real estate developers, but homeowners may want to try it as well. Basically, property flipping means you buy a property that is not in great condition (this costs much lower). You invest more in repair and renovation. The result is a “new” property!

From building to renovation, Millenium Homes can build beautiful homes for you

Want to build a new home or renovate the existing home you plan to buy? Millenium Homes can build for you the home of your dreams. Call us at +61 400 811 731 or email us at admin@milleniumhomes.com.au.

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