Build a House or Buy a Used Home: The Economics

Homes are typically the largest and most impactful investment an individual or family will make in their lifetime and for a good reason. The most obvious benefit of owning a home is that it can provide a place to live. Homeowners also enjoy the stability that comes with living in one place for an extended period of time. Additionally, homes often appreciate value over time, which can provide a valuable source of wealth accumulation. Owning a home can be achieved in two different ways: purchasing a home that is already built or constructing a new home with the help of expert house builders. Each of these methods has its own unique benefits and drawbacks. In this blog, we are going to discuss this great debate: should you buy an existing home or build a new one?

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Purchasing a home

The home buying process is a road well travelled for many Australians. The process of buying a home generally starts by finding a real estate agent who will help you find a property that meets your needs. Once you have found a suitable property, your agent will work with you to put in an offer and negotiate the purchase price. If the offer is accepted by the seller, your agent will help you through the process of getting finance and finalising the purchase.
There are a number of benefits to purchasing an existing home. Firstly, purchasing an existing home is often cheaper than building a new one. Existing homes also come with pre-existing infrastructures, such as wiring and plumbing, which can save time and money during construction. Finally, many existing homes have already been lived in and are, therefore (somewhat) furnished. This can be beneficial for those who are not interested in or able to undertake a large renovation project.
The main drawback of purchasing an existing home is that it may not meet all of your needs. For example, you may need to renovate the property to make it more suitable for your needs. Additionally, many older homes may require significant repairs, which can be costly.

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Cost of buying a house in Australia in 2022

Australia's property market has experienced growth over the last few years, and it doesn’t look like stopping soon. The average house price in Sydney is now at $1,600,000, and Melbourne is not too far behind with an average of $1,200,000. So if you’re looking to buy a property in Australia anytime soon, be prepared to break the bank.
The good news is that while the average prices keep growing, there’s still a lot of opportunity for those who are willing to look in the right places. Regional towns and suburbs are becoming increasingly popular as people become priced out of the city centres. If you don’t mind a little commute, you could snag yourself a much more affordable property without sacrificing quality or amenities.

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Building a house

​Are you the type of person who always needs to be one step ahead? Do you enjoy having control over every aspect of your life? If so, building your own home might be the perfect option for you. The process of building a home generally starts by finding a landowner who is willing to sell you a plot of land. You will then need to work with a builder to design and construct your home. This process gives you complete control over the design and layout of your home, as well as the materials used.

The benefits of building a house

1. Control: As mentioned above, one of the biggest benefits of building your own home is that you have complete control over the design and layout. This means that you can tailor the house to meet your specific needs and wants.
2. Customisation: Another benefit of customising your home is that you can choose the materials and finishes that you like best. This can give your home a unique look and feel that you won’t find in any other home.
3. Affordability: Building your own home can be more affordable than purchasing an existing home. This is because you can choose materials and finishes that are within your budget.
4. Energy efficiency: When you build your own home, you can ensure that it is energy efficient. This can save you a lot of money on your energy bills in the long run.

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Drawbacks of building a house

1. Time: Building a house can take a long time, especially if you are doing it yourself. This means that you will be living in temporary accommodation for a while.
2. Stress: Building a house can be a very stressful process. There are a lot of things that can go wrong, so it’s important to have a good plan and to be patient.
3. Cost: Building a house can be expensive, especially if you are using high-end materials and finishes. It’s important to do your research and to get quotes from a variety of builders before starting the project.

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What's the average cost of building a home in Australia?

There are a number of factors that will affect the cost of building a home, such as the size and complexity of the project. The type of finish you choose will also have an impact on the final cost. As per the latest figures, a 3-bedroom house would set you back upwards of $270,000 while a 4-bedroom house costs upwards of $480,000.
However, the best way to get an accurate quote is to speak to a builder directly. They will be able to assess your specific needs and give you a more accurate estimate.

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So, what's the verdict?

There are a lot of things to consider when it comes to buying or building a home in Australia. It's important to weigh up the pros and cons of each option and to make a decision that's right for you. If you're looking for a property that's tailored to your specific needs, building your own home is definitely the way to go. However, if you're after a more affordable option and don't mind a little bit of extra work, purchasing an existing home might be the better choice. If you need a little help deciding, speak to Konnect Building Solutions. We are experienced builders who can help you make the right decision for your needs. To get started, visit our website at https://www.konnectbuilding.com.au/. 
Konnect Building Solutions, Bardwell Park Sydney NSW 2207, 0402658244

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