Is it better to build or buy new?

Many people believe that, on paper at least, building a new home can cost more than buying one that’s newly completed.

 

However, when you study the numbers properly, not only does building result in a better outcome, it can be a more cost-effective option, too.

 

Here are a number of reasons why.

 

  1. You get the home you want.

 

One of the biggest differences between building your dream home and buying one that’s recently been constructed is that you get exactly what you want when you build. 

 

It’s a bit like the difference between buying a suit off the rack and one that is made to measure for you.


The first suit might fit OK, but perhaps you need the sleeves, or the trousers lengthened, whereas the bespoke suit fits you like a glove because it was made exactly to your measurements.


It’s the same with building a new home because you can design it to suit your family’s needs now and into the future perfectly.

 

  1. You get the location and position you want.

 

Buying a block of vacant land and building on it ensures that you get the location and position you want.

Perhaps you’ve always dreamed of a home on a hillside or one with a certain aspect or view.


You can secure that by buying vacant land with those attributes, whereas if you’re limited to homes that have already been built you might have to make significant concessions depending on what’s available at the time.

  1. You get the opportunity to future-proof the home

 

When building your home, as opposed to buying one that’s already built, you get the opportunity to future-proof it by installing the elements that are important to you.

Say you work from home and require high speed internet, you can install smart cabling during the construction phase, whereas buying a new home might require you to do this at your own cost after settlement.


You can also design the home to reflect your family’s needs now, but also in the future, which might mean including a study that can simply be turned into an extra bedroom when your family expands.

  1. You get to take advantage of cost-effective materials and building techniques


Working with a professional builder, who also specialises in design, means that you can take advantage of materials and techniques that are more cost-effective.

As we’ve written about before, one of the keys to success when building a home is to understand the project costs at the start of the process, which means you’re less likely to encounter unexpected additional expenses.

Working to a project budget means that your building and design team concentrate on constructing a property that not only meets your specifications, but they also have room to make changes if cost savings are necessary.

Buying a new home, on the other hand, leaves very little room for cost savings.

In fact, new homes generally have a significant premium attached to their price as the developer or builder does make a profit on the sale as well as pay for its construction and design.

So, choosing to build over buying new, removes one party’s access to a slice of the money pie.  
 

There are myriad factors that determine whether someone might choose to build a new home or buy a brand new one.

 

However, if you look at the long-term benefits and savings, the overall result is a new home will reflect your individual style better and probably save you money along the way, too.