Buy or Build:

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Buy or Build?

Before you start planning your Buckingham Palace, you need to get a clear picture of just how far your budget will actually go. There’s no guarantee that building from scratch will necessarily be your most affordable option.

And you want to be confident that your budget will give you the home with all the features and finishes that you want.

Buying off the plan might also be an option  for you. The special considerations of buying an apartment or townhouse before it’s constructed  are covered in our Buying and Selling Guide. Ask your Loanseeker broker for a copy or download  at

The best way to know what you need  to budget for is seeing what’s out there.  If there are already established homes  in the area, what do they look like and  how are they valued?

Visit home display centres to see what value building a project home can deliver. Consider home and land packages that could offer even better value than buying vacant land and then deciding what you’re going to build.

A few more things to consider

Consider This Building Buying
Location, location, location Land can be hard to find. The most affordable options tend to be in new releases in outer suburbs or in regional centres. Consider  local amenities such as schools, shops and transport links. Is it somewhere you actually  could live comfortably Vacant land tends to be considerably more expensive (and harder to find) closer to city centres. If that’s where you want to be, buying  an established home could be a more viable option… unless your budget extends to a knock down and rebuild
Capital growth Scarcity and location can be key drivers of capital growth. In new estates and outer suburbs, capital growth may be slower in the short to medium term. Homes in good locations with established infrastructure and amenities tend to enjoy greater long term gain than outer areas.
Making your house your home Whether you’re using an architect or building  a project home, you have more scope to get  the layout, features and finishes that you want.

You can tap into the latest design and construction trends – including ‘green’ environmental features – that could help  add long-term value to your home.

An established home may need minor or major renovations to suit your needs and tastes.

Perhaps you need more room and storage for a growing family. Or you want to add eco-friendly technology. These could all add additional expense and inconvenience

Have you got the time Any new build takes time and a range of factors need to be taken into account: design process, council approvals, availability of builders, tradespeople and materials, and unexpected delays such as wet weather. Buy an established home and you can usually move straight in after settlement
Stamp duty With vacant land, stamp duty is only levied on  the land value – usually considerably less than  if it was an established property. Stamp duty will be payable on the value of the land and the building on it
Government support You may be eligible for stamp duty concessions or other government incentives for building new homes. Check in your state or territory. First Home Buyers may be eligible for financial support in buying existing dwellings but some states are phasing this out in favour of schemes supporting new home construction.



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