A new year usually feels like a fresh start. For many, that can mean time to make the biggest decisions in their life, like buying a home.
But big decisions come with big dilemmas: to buy an established home or build a brand new one?
Here’s our guide to making that tough call.
The pros and cons of building a new home
If you opt to build a new home with a company like Metricon, there are distinct advantages, even though taking the plunge to build new may seem daunting at first!
- Customisation: Building new allows you to decide precisely what your dream home will look like, collaborating with expert designers to achieve the ideal floor plan, facade, orientation, and fixtures that align with your lifestyle goals.
- Stamp Duty Savings: One significant benefit of building new is the exemption from stamp duty on the constructed home; you only pay for the land it sits on, resulting in immediate savings.
- Affordability: Building with Metricon can be cost-effective, thanks to the HomeSolution by Metricon $5K start today offer*, potentially eliminating the need for a substantial initial deposit. Eligible first home buyers can begin their journey to owning a new home with just a $5,000* deposit and the assistance of a savings plan. Our mortgage consultants will guide you through the first home owner grant and help you stick to a savings plan on your way to owning your first home.
- Government Schemes: First-time home buyers may further reduce costs by exploring various government-run first-home buyer schemes.
- Modern Innovations: Opting for new construction allows you to embrace modern approaches and the latest innovations, ensuring energy efficiency that could lead to long-term savings on utility bills.
- Transparency: When you opt to build, your builder typically settles on an upfront cost, providing clarity and transparency from the beginning, with no hidden surprises.
- Peace of mind: The advantage of everything being brand new is a reduced likelihood of encountering unexpected repair costs or major maintenance issues. Opting for a reputable builder like Metricon ensures coverage under our lifetime structural guarantee^ for added peace of mind.
On the flip side, building your dream home entails a longer wait compared to acquiring keys for an existing property.
New builds are also often located in suburban or regional areas, which may be a consideration for city enthusiasts. However, innovative options like Metricon’s KnockDown ReBuild service allow you to construct a new home on an existing block, potentially in a more central location.
The pros and cons of buying an established home
Depending on your life goals, there might be a couple of reasons why you’d prefer to buy an existing property over electing to build brand new.
- You don’t have to imagine the dream. You can walk through an existing property inspection to check out every nook and cranny. But remember, most major builders like Metricon have display homes, so you can still get a great idea, with some for sale too.
- While existing properties may be more commonly found in established inner-city neighborhoods or desired regional hubs, it's worth noting that many new estates are now rich in amenities and conveniently located near freeways, shopping centers, and sporting facilities. The choice between the two often depends on personal preferences and lifestyle priorities.
- Renovating an existing home may offer certain tax incentives compared to starting a new build from scratch.
- Choosing an existing home means you can move in within a month or so, whereas a new build involves a longer wait period.
What are the drawbacks of buying established property?
- A downside of purchasing an established home is the less fixed pricing, often subject to unpredictable auctions, potentially challenging your budget compared to reaching a upfront agreement with a builder.
- Acquiring an existing home may require compromise on certain details that might not align with your preferences, unlike the option of designing a new property from scratch.
- Homes constructed before 2006 might lack the energy efficiency standards set by the National Construction Code, a factor less likely in a new Metricon build.
If you're leaning towards a new build, you can contact one of Metricon's design experts to discuss if we might be the right fit for your home dreams on 1300 786 773 or email us here.
*To be eligible, customers must (a) qualify for Victorian Government’s First Home Owner Grant (FHOG); (b) pay $5,000 with the balance of 5% deposit funded through the FHOG plus a savings plan, applied to land and build contract deposits, government charges and lending costs; (c) qualify for the HomeSaver program provided by Phoenix Mortgage Management Pty Ltd (Australian Credit Licence 393868) which assists customers save the funds needed to obtain a home loan & (d) qualify for a home loan. Lender’s mortgage insurance will apply & is incorporated into the home loan repayments. Other lending costs, fees and other terms and conditions will apply. In Victoria, credit assistance is arranged through Loan Gallery Finance Pty Ltd ACN 163 825 670, Australian Credit Licence Number 475302, 4/60-70 Mahoneys Road Thomastown 3074. Lender’s mortgage insurance may be required, incorporated into home loan repayments. Lender’s terms, conditions, fees, charges and lending criteria apply. All loan applications are subject to lender’s approval. Metricon may vary this offer at any time & does not supply finance or land. Newfield Real Estate Pty Ltd ACN 159 312 722, Licence number 028051L. Victorian Builders License CDB-U 52967. Victorian Builders License CDB-U 52967. JAN 2019
^For more information on our Lifetime Structural Guarantee, visit our Terms and Conditions.
