Pros and Cons of Building in a New Estate
We all love shiny and new, what better way of getting this than building a home – it’s the great Australian dream! House and land packages, glossy brochures and perfect display homes can offer couples an accessible entry into a difficult housing market. But is buying into a new estate everything we hope it will be? Are there benefits of purchasing in an existing area that outweigh the excitement of building your dream home? An honest, professional builder will tell you that there are certainly advantages with buying off the plan but our experience has shown there are also potential pitfalls in pioneering a new estate.
SHOW ME THE MONEY – NEW ESTATE SAVINGS
Purchasing your home off the plan nearly always means you will pay significantly less than market value in the preliminary stage of development. Property developers and builders reduce their risk by selling the majority of an estate before the build begins and this results in real savings for couples planning on building a beautiful new home.
Buying into a new estate before construction has started will also save thousands of dollars on stamp duty, leaving extra money to spend on luxury additions to your new home.
“You pay only a fraction of the full stamp duty otherwise payable. For example, you would save approximately $9000 when purchasing a $240,000 property “off the plan”. This saving only applies to new properties purchased “off the plan” and only in Victoria”, says FindLaw Australia.
Typically buying into a new estate will only require a 10% deposit that will lock in a fixed price on your new home. The balance of the build won’t be payable until completion of your house – sometimes this can take up to a year or two, leaving your finances free to manage until then.
The financial advantages of buying into a new estate at a preliminary stage are attractive and exiting and definitely should be considered…but as a wise man once said, “there’s more to life than money”.
SITE UNSEEN – YOUR CASTLES IN THE AIR
Your home is your castle and choosing one literally as site unseen can be a risky move. Here is where choosing a professional builder is your safest option. Before signing a contract, do your research, speak to previous clients, research the developer, read the wonderful things that are written about builders like Braewood Homes…
Making sure the developer that you choose is a reputable, honest company can make the difference between a dream build and a nightmare experience. Builder’s licensing authorities can tell you if complaints have been lodged about the developer – forewarned is forearmed!
The best advice from a professional builder will tell you to really look carefully at the display homes on show. Channel your inner judge like the ones we all see on The Block. Inspect everything with a critical eye, from the fittings to the finishes to the layouts and really imagine if this is what you really want.
The right custom builder will be able to deliver your dream home.
WHAT’S THE HOLD UP?
New estates are, exactly that – a developing area. While there’s a certain sense of pride being the first kids on the block, there can also be some unwelcome surprises. Estates take time to unfold. Roads are not always finished, essential services not always in place and the sound of your neighbour’s home being built may drive you around the twist for several months to come.
These are small details for couples that want to be part of an area as it grows; for many buyers the excitement and financial savings are worth a slightly dusty drive home. If you do your homework and really feel this isn’t the dream for you, it’s not the end of the world. Speak with a professional builder like Braewood homes. Maybe a Knockdown Rebuild in an established area is your great Australian Dream.