While purchasing property is often a once in a lifetime purchase, given the world’s current state of affairs – is it better to build or buy a home this year?
While we can now refer to 2020 as many things, “surprising” is a term that springs to mind if referring to the Australian property market. With rising unemployment (or underemployment), a reduction in consumer spending and a shaky economy, it’s understandable as to why buyers may not have the same confidence as they once had.
However, the good news is that the arrival of Covid-19 has appeared to be more of a temporary pause as opposed to the cataclysmic hit that was initially predicted. Although it’s changing how and where we live, 2020 saw Australians pocket an unprecedented $110 billion in personal savings. Cashed up with pre-approvals and sizable deposits, our real estate market is expected to hit double digits in terms of growth patterns for 2021. If you’re weighing up your options regarding to build or buy a home this year, it’s important to remember that both methods offer significant financial and social benefits – the better fit just usually depends on the individual priorities of the buyer.
Should You Build A Home This Year?
While whispers circulate that 2021 will indeed be a buyers market, as usual it often boils down to your personal circumstances. Just one factor to think about is if you’re the type to prefer a quicker turnaround when it comes to settlement, or do you have time up your sleeve to oversee a fully personalised construction from the ground up?
With a range of monetary incentives available such as the First Home Owners Grant and the HomeBuilder Grant, more Australians than ever are being encouraged to kick start the economy and build their own home – but is it worth it? If you’re considering building your own home this year, here are the key pro’s and con’s associated with this process.
One of the biggest benefits associated with building your own home, is that you can customise anything and everything about the property from the ground up to suit your individual tastes. This can include anything and everything from the layout, cabinets and flooring to the sinks, lighting, paint colours and even doorknobs. As it’s going to be a brand new property, you can also expect lower maintenance costs and lower bills thanks to more modern and energy efficient materials being used in the house.
However, not everybody has the patience for building their own home. Did you know that constructing a brand new home takes seven months on average, and that’s not including any applicable wait times that come with the planning and council approval stages? Let’s not forget that you’ll usually be working directly with a lot of tradesmen, meaning the decision making and associated stress levels fall directly on your shoulders.
Should You Buy A House This Year?
In comparison, other buyers opt for an established home for other reasons. While sometimes it may not be as aesthetically pleasing, these properties offer a much quicker settlement time period, which in turn allows owners to either move in faster or use it as an investment property for renters. If you’re weighing up whether it’s better to build or buy a home, an established property can offer a different path entirely as opposed to starting from scratch.
Considering the current economic climate, if you have your finance sorted – then the property world really is your oyster. Be flexible on the look, feel and even suburb of an existing property, and you’ll often be able to negotiate on much more than just the price, and could wind up saving thousands if you’re a savvy property hunter. Unless you’re buying a “doer upper”, then chances are that your home will be mostly ready to go. After the settlement and and contracts are signed, done and dusted, the turnaround time between the sale and when you can physically move in is usually pretty quick.
While purchasing an existing property offers greater flexibility, the major downside is that they can come with bigger bills and surprise maintenance costs – which is the reason why it’s crucial to do the essential checks such as building and pest inspections. Failure to do so could have you stuck with a property that winds up being a burden as opposed to an investment.
Have You Got A Mortgage Pre-Approval Yet?
Whether you’re looking to build or buy a home, it’s important to have your finance sorted beforehand to avoid unnecessary stress further down the track. Not only do you know your spending limits, but the stress and time that traditionally goes into organising one is already taken care of – and did we mention bargaining power?
If you’re on the hunt for a highly recommended mortgage broker in South East Queensland, or even some friendly and honest advice on where to buy in Brisbane, then it’s time that you met with George Samios and the team at Madd Loans.
Since their inception in 2012, the team at Madd have worked tirelessly in providing over 1700 Queenslanders with finance options to help turn their dreams into reality. With the entire brand being built on referrals, George takes great pride in making the mortgage process both fun, educational and stress free – and he has a swag of awards to prove it.
An independent operator can be your greatest asset when it comes to navigating loan options, as brokers are there to make you happy – not the banks. To speak to a Brisbane based mortgage professional, please get in touch with the team at Madd Loans today to help turn your financial dreams into reality.