20 August 2019
Real Estate Buying vs. Building: which is better for first home buyers?
If you’re starting your journey into home ownership, congratulations! You’ve taken the first step on the path to the great Kiwi dream. Here at Lugtons, we know what an exciting — albeit confusing — time this can be. The residential market is in a constant state of change, and the reality of owning your own home can seem complex as you try to size up which window of opportunity is right for you. But we’re here to help. This blog investigates whether you should buy an existing home or build new.
Property price: budgeting for your first home
When you’re looking at an entry level property, price is a defining factor. Why? Because there is a significant difference in the price of buying an existing property and building a new house. The first has a fixed price, the latter’s price can increase depending on the house type, construction process, and land acquired.
To find out how much you can invest in your first home, we recommend sitting with a lending provider to work out what mortgages are available. Once you’ve got preapproved finance, you will know what you’re able to afford and which options can be considered.
DIY: Customising your home
As a first home buyer, we’re sure you already have a wish-list of items you would love to have in your new home. The reality is, buying an existing home may require some compromise.
It’s important to remember your property is just that: yours. And you can customise it retrospectively to suit your tastes. Chattels can be easily replaced, and simple home improvements can be completed to bring up the value of your home.
Building, on the other hand, is a sure-fire way to get everything you want in your first home but, as we said before, that comes with a price. Nowadays, you can buy house and land packages which allow you to customise almost everything. Don’t believe us? Check out the options currently available.
Maintenance: how much outdoor space do you need?
If you’re looking to move into an existing property, the odds are the home will already have mature landscaping, a plus if you don’t want to start gardening from scratch. But mature doesn’t always mean low maintenance.
You can always adjust your outdoor environment or start with a blank canvas by building new. Taking the latter approach gives you the opportunity to decide how you would like your garden to look, feel, and grow.
Choosing your location
When it comes to location, there are two significant considerations, three if you count school zones: quality of life and the resale value of your property.
While you can buy land in high-demand areas, it is much more expensive and often requires some luck. Land in rural locations on the other hand is easier to come by. If you’re looking to buy an existing property, it’s a lot easier to buy something in a central location – whether it’s better or not, is subject to the buyer.
To buy or to build?
There are many pros and cons to building vs. buying your first home. Either way, working with an experienced professional can help ensure this process goes smoothly. Contact the Lugtons team today to discuss your property options. Through insight and an understanding of the market conditions, we can help you find the right property to suit your budget and lifestyle.