Looking for a new home or investment property can be hard work with so many different aspects to consider. We are here to make the process a little easier when it comes to deciding whether to buy land and build a brand new house or purchase an old or established home. Building a new house has many benefits and we have outlined the top ten reasons we think new builds are the better choice!
1. Choose your ideal / dream design
It’s obvious if you decide to build a new home you get to pick out what it looks like, the layout and extra amenities you need/want. This is a big plus for people who have always wanted a particular style of house or design, which they may never find in older houses or if they do, there is plenty of competition when trying to buy! With a new build you are guaranteed to get what you want and not have to worry about anyone poaching your property.
2. Lower Maintenance
As the house is brand new there are generally lower maintenance costs due to the fact that items should not need replacing or updating any time soon! Older properties have older materials, fixtures, appliances, etc. and are therefore more likely to need more maintenance.
3. Cheaper to run / energy efficient
With the improvement of technology over the years and a more environmental focus newer houses can be more energy efficient. This means ongoing costs are reduced, as a newer house is cheaper to run, saving you money in the long run, as well as being environmentally friendly!
4. Structural Guarantees & Warranty
A good builder will offer structural guarantees, meaning you can be certain the quality of build is high. With an old house you can never be sure of the structural stability. Warranties may also apply and with a new house this means you have the whole time of the warranty under your sleeve if anything was to go wrong.
5. Higher claimable depreciation value
Depreciation allowances apply on the build and even some home contents, reducing the holding costs of the property. Tax deductions can be made on assets such as the building itself, as well as the fixtures and fittings.
6. Command top dollar rental / higher quality tenants
If you’re looking for an investment property a new build could be the way to go. Newer houses command higher rental yields and the quality of tenants is usually better. The vacancy rates are often much lower, as renters seem to be keen on new builds. A new house means less maintenance so the tenants won’t have to worry about things breaking down or parts that need updating.
7. Choose the most suitable block for you
You can generally find a block that suits you best. Whether you want a bigger size for a growing family or downsizing for less maintenance there is usually something for everyone in a new development. Having different choices in block sizes enables you to build a home that suits you, your family and your budget.
8. Modern luxuries can be included at a lower cost
Things like adding an ensuite, extra room, alfresco area or even a pool to an older house can be extremely expensive. If you’re building a brand new house some of these things can be included at a much smaller cost.
9. Stamp Duty benefits
You only have to pay Stamp Duty on the land component when you buy a house and land package, resulting in significant savings. As the house hasn’t been built purchase stamp duty is only paid on the land, making new builds that bit more desirable.
10. Generally better resale value
With everything being new and under builder or appliance warranty, as well as featuring all the luxuries modern living demands, new builds are an attractive prospect for any buyer, therefore increasing the resale value.