Should you buy a brand new house or renovate an older house?

Should you buy a brand new house or renovate an older house?
Should you buy a brand new house or renovate an older house?

With all the grants and concessions available to first home buyers, now could be a great time to secure your first home. First, you’ve got to decide whether you want to search for a new home or an existing property, as well as how much you want to spend. 

While cheaper houses may look financially appealing, the long-term cost of renovations can skyrocket substantially. Television shows such as The Block make it look easy. However you need to account for the fact that you will be required to:

  • Organise tradespeople
  • Pay for an architect or draftsman if significant work is required
  • Source materials
  • Factor in the cost of renovation and property purchase price
  • Be flexible with the renovation time frame

With mortgage repayments and living costs at a premium, some first home buyers find it more cost-effective to buy a new home. 
Buying a new property means you don’t need to go through the stress of a total renovation. You can select your dream home that suits your style, and if you buy off-the-plan you may have the option to customise your home too. Off-the-plan properties often require less maintenance and upkeep, as opposed to older homes. 

What to consider when buying off the plan apartment:

  • Is it close to amenities and public transport?
  • Is there planned infrastructure and talk of future growth?
  • What are the views like?
  • How close is the home to your workplace?
  • What is the reputation like of the developer, architect and builder?
  • When is construction likely to be completed?

If you choose to buy from a developer with an excellent track record, you will know you’re in safe hands and the banks love it as they can lend with more certainty.

Jay Baumann

Jay Baumann

Jay has been in the real estate and corporate finance industries for 14 years. In this time, Jay has acquired great insight into trends from a micro and macro perspective. Analysing a multitude of diverse environments gave Jay an upside to the long and short-term vision of the real estate market, where he made his mark in the industry.

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