"Building new or buying established?"

"People who buy newly established properties usually say it’s cheaper or more convenient than buying a second-hand home because all the hard work is done. Although, many buyers of existing homes eventually renovate which can be costly if it’s an older property.

Those who prefer to build from scratch say it’s worth the extra cost and effort in order to have a home that meets their particular desires. Building a new home also provides the opportunity to include some of the latest trends or environmental features that may be absent from established stock.

In recent years there has been a surge by people in their 40’s and 50’s wanting to build the dream home they have long desired and this has been assisted by the availability of land in established parts of the city through the drive for urban infill. 

Ultimately, it is the cost comparison between building and buying that will usually decide which option people choose.

In recent years Australian Bureau of Statistics data has shown that the cost of building a project home increased by upwards of 16 per cent, while in WA the occasional shortage of builders and tradesman can lengthen the amount of time needed to finish a home if a resurgent mining sector lures them away.

Now that the mining sector has wound down a bit, building costs seem to have leveled or come down a little and finding skilled workers to develop land and undertake new housing construction isn’t currently an issue.

 

As a result, there are some excellent house and land packages in outer urban areas to help buyers into the market with affordable options. 

First homebuyers should be particularly careful not to over extend themselves financially. Buying an affordable, existing home can often be a better option for many first homebuyers, but either way it’s important that people seek professional financial advice before deciding on the big commitment of home ownership.

Unusually, first homebuyers in Western Australia, unlike many other states, are fortunate to have a good supply of available land on which to build. There are currently around 1,400 blocks of residential land for sale in the metropolitan area.

Our state retains its strong housing culture propelled by the overwhelming desire by most people to live on a green title lot with a stand-alone house. For example, whereas 50 per cent of all new dwellings in Sydney are group dwellings such as units, apartments, villas and townhouses, in Perth only around 20 per cent of new dwellings are in this category: houses dominate here.  

Perth remains the most urbanised capital city in Australia because we have the least number of grouped dwellings as a percentage of overall stock than any other Australian city."

 

This article was sourced from REIWA.