The age-old question: should I build a new home or buy existing? Unfortunately, there is no straight answer. It’s a highly subjective question and dependent on what you are looking for in your property.

Making the decision to purchase a home (whether a new or existing one) is by no means easy – not just for first home buyers, but for people experienced in the property market as well.

Despite some recent falls, house prices in Australia remain high after a period of record-low interest rates sent values soaring. However, it is also difficult to ignore the current state of the construction industry, with costs increasing and supply shortages still seen post-pandemic.

So, while there are pros and cons to both, the short answer is that it’s likely cheaper to build – particularly in the long run.

One of Brisbane’s newest land releases, Pallara is an up and coming suburb in the south. Located 17km away from Brisbane CBD, it is close to the Logan Motorway and boasts an average price of land per square metre of $1,200 (The Encore Element Estate pricing).

The median house price in Pallara for an established four bedroom home is $865,000, with double storey homes selling for a median price of $1.15 million.

Clarendon Homes’ popular Ashgrove 27 is a four bedroom, two bathroom, three living area single storey home that offers plenty of space to live, grow and play! You can build this home in Pallara with an Arcadia facade from $836,590* – well below the median price (with room to play). This price also includes our premium Luxe standard inclusions!

As you can see, it is worthwhile researching an area to determine whether it is cheaper to build new or buy existing as it can vary.

PROS

• Modern features and appliances.
• Can get what you want in your home.
• Newer homes tend to be more energy efficient due to new construction standards. Potentially saving you money on your energy bills long term.
• Various home buyer schemes such as HomeBuilder grant and First Home Owner Grant incentivise building or purchasing a new home.
• Save by only paying stamp duty on land value and not the entire property’s value.
• Don’t have to be concerned about hidden costs for fixing plumbing, wiring and appliances breaking down.

CONS

• Difficult to visualise a home that hasn’t been built yet.
• Takes time to build a home, so you may have to arrange short term rental accommodation.
• Newly built homes tend to be located on the outskirts of cities and towns. You can combat this by doing a knockdown rebuild.

PROS

• Fast and easy process
• If you want to live in a fairly central locaton, purchasing a home will be your main option
• Opportunity to purchase a heritage home with character
• Many homes already come with landscaping

CONS

• Compromises are often made as you may not be able to renovate or modify in the way you desire
• Renovating is more expensive than building new
• Can also require money spent on repairs or to fix it up.
• Older homes require thorough inspection of plumbing wiring and fixtures

When determining whether you are going to buy or build, consider the following questions:

• How long are you planning to live in this house? If you are only anticipating to live in the home for a short amount of time, do you want the time necessary to build a new home?
• When do you need to move into this home? If you do not urgently need to move, building is still an option.
• Where do you want to live? Do you value an established community or want to give the opportunity to build the home of your dreams from scratch in a new area a go?
• What can you afford? Depending on the area you are looking at, it may be cheaper to build and vice versa.
• Are you investing? What do the rental trends look like in your desired location? Are vacancy rates high?

To discuss new home build options in your area, visit the nearest display village where our New Home Consultant’s will be able to assist.

*Price representative of Clarendon Homes’ June 2023 pricing.