New Or Existing Homes?

After spending years of share housing, living under parents roof, and/or renting apartments that are too small, you are finally ready to take the plunge and buy your first home.

The big question now is: what to buy?

Although saving for your home can seem like the hard part, there are still a lot of decisions to make before you find your dream house and sign on the dotted line. The first thing to decide is what kind of home would you like?

With high property prices, there is often a lot of debate over the pros and cons of new versus existing homes. From homeowner grants to your dream neighbourhood, to the style of your home, it can all become a bit overwhelming trying to figure out which is right for you.

Here are a few things you might want to keep in mind when comparing new and existing homes.

New homes

Over the last few years, Australia has seen a boom in new houses being built. This is good news for first home buyers as it means there is an abundance of choice when they are entering the market.

One of the major enticements of a new home is the availability of the Queensland First Home Owners' Grant. Under this, first home buyers in QLD are eligible for up to $15,000 towards buying or building your new house, unit or townhouse (valued less than $750,000).

A new home is either:

• a house, apartment, unit or townhouse that has never been occupied or sold as a place of residence
• a substantually renovated home (completed by the seller in limited circumstances)

Stylistically, new homes have their benefits too. Being newly built, you can be sure that your home will be designed with the most modern aesthetics and appliances in mind.

Something to consider, which is not necessarily a bad thing, is that new builds are often located in new areas. This can mean that you are further from the CBD, which may impact your commute time if you work in the city.

Existing homes

Existing homes are those that have been lived in or sold prior to you purchasing them.

Aesthetically, an existing home will offer you a wider variety without compromising on modernity if you set your sights on a recently renovated property.

Older homes can give you flair and character, reflecting the time they were built. Whether that’s a Victorian cottage or a classic Aussie red brick bungalow, there is something for everyone’s taste.

Buying an existing home also provides you with more options in terms of location when considering where to buy. It gives you the freedom to choose an established neighbourhood that suits your needs, allowing you to be as close to or as far from the city as you desire within your price range.

On the other hand, an older property can mean older fit-outs. If you are looking for somewhere to renovate or add your personal touch, this could provide a great opportunity. However, if you want somewhere that is already up to date, you’ll need to keep an eye out for places with recent upgrades.

Another thing to consider when buying an existing property is to ensure you are willing to undertake all relevant inspections. Everything deteriorates with age and houses are no different, but taking the right steps early on will prevent you from being stung by any hidden defects or pest infestations in the future.

Buying your first home is one of the biggest and most exciting decisions you will make throughout your life. By putting in the time to do your research, the hard work will pay off, in the end, to help you become a happy homeowner.