Monday, February 07, 2005

Buying a New or Established Home

You have decided it's time for a new house. Should you build or purchase an existing home? There are advantages and disadvantages to either option.

Advantages of Building a New Home

1. You will get to be involved in the design of your new house.

2. You will know the quality of the materials and the workmanship since you will be involved in the process of choosing these things and monitoring the building progress.

3. You have more choices when building. You can choose from a wide selection of products to personalize your new home.

4. A new house often comes with a warranty. This can provide peace of mind in the first few years.

5. You can design the landscaping exactly how you want it.

6. New homes are usually highly energy efficient and over the long term will likely cost less to heat and maintain.

7. You can include special upgrades into the financing allowing you to have additional options without having to pay for them up front.

8. New homes already adhere to current local building codes and regulations.

9. Your new home will feel like it is your home because no one else has ever lived there. It will be a special feeling.

Disadvantages of Building New Home

1. Houses in housing developments are often very similar and therefore lack the character of older established homes.

2. You will not be able to have a home inspection because the home will not be finished yet.

3. New homes usually do not have mature trees.

4. New housing developments often include ongoing construction in the area which can make it difficult to resell.

5. If the builder is careless in the construction of your home it could cause problems which will plague you for years to come.

Advantages of Buying an Established Home

1. You can often get more house for less dollars than you can when buying a new home.

2. Established neighborhoods often have mature trees.

3. The entire process is much shorter and you can be in your new house that much sooner.

4. You can have a home inspection and you know what you are getting. There are usually no surprises.

Disadvantages of Buying an Established Home

1. Older homes often have problems that require repairs.

2. The existing home does not come with a warranty.

3. If you want to make renovations you will have to pay for these with cash or other financing.

When you have decided to move into a new home it is important to consider your options carefully. Consider the pros and cons of either building your new home or buying an established home and make the choice based on your priorities.

Information about obtaining a Home Loan in Australia