Which home buying option is right for you?
If you’re in the market for a new home, one of the first (and most important) decisions you’ll make is whether to buy an existing home or build your own. Both options have their merits—and drawbacks—and so the right choice will ultimately rest on your individual preferences and priorities!
Initial Considerations
Where are you on the property ladder? It makes a difference. As a first-time buyer, you’ll have unique considerations. Building a new home can provide a blank canvas for your ideal living space, allowing you to customise every aspect to your needs and preferences. On the other hand, purchasing an existing home might offer a simpler entry into homeownership.
Remember, buying a property is very much a case of ‘horses for courses,’ and not every piece of advice will apply to your unique circumstances.
It’s also important to adopt a long-term mindset when weighing up your options. How much space do you need now? How much will you need in five years? How will your home gain value over time? New builds often have modern, open-plan layouts that cater to contemporary lifestyles and can be designed with future needs in mind. Older homes might have more unique spaces, which can be charming—but potentially less functional.
Similarly, you’ll likely have a preference about what area you’d like to live in—friends, family and community bonds are important factors. New developments often create vibrant new communities, whilst established neighbourhoods have their own unique character. Equally, a broad range of nearby amenities can be important, especially for those with limited mobility.
Building New
New builds provide the ability to customise things to your unique specifications, from the floor plan to the finishes and beyond, ensuring the home meets your lifestyle needs and aesthetic preferences.
Energy efficiency in new builds—from better insulation to double-glazed windows, and modern materials—can lead to ongoing savings. Older homes can also be updated to improve efficiency, however, this can be costly.
Of course, with everything being new, you’re less likely to face major repairs or replacements in the early years of homeownership, and new homes often come with up-to-date features such as smart home technology, modern wiring for high-speed internet, and the latest in-home security systems. Similarly, new builds generally come with robust warranties, providing new homeowners with peace of mind and financial protection.
Building new can also come with challenges. Projects can run over budget and this financial uncertainty can be challenging, especially if you’re working with limited funds. However, there are building options to avoid these sorts of problems. Turnkey packages—build packages that are ready to move into without any additional work—are fixed price, and the risk is entirely with the builder during the build process. Often you can secure a turnkey package with as little as a 10% deposit, and you don’t have to make mortgage repayments until you ‘turn the key’ to your new home. Additionally, with a turnkey purchase, you can spend the time while the home is being built saving money for your deposit. There are also a wide range of house and land packages available at a fixed price, and for those who want a new home without any wait at all, some developers offer already-constructed homes that are available for immediate occupancy.
Financial Considerations
Understanding the financial implications of building vs. buying is central to making an informed choice. When buying an existing home, your initial costs will typically include a down payment (usually around 20% of the home’s value), closing costs (add another 2% to 6%), and any required repairs or renovations.
Building your own home on the other hand involves a different set of expenses, depending on the option you go with.
Building your own home can offer more flexibility in managing costs:
Progress Payments: Often, you can pay in stages as the build progresses, which can be easier to manage than a lump sum.
Customised Budget Allocation: You can prioritise spending on the aspects of the home that matter most to you.
Potential for Immediate Equity: In some cases, the value of a new home upon completion can exceed the construction cost, creating instant equity.
No Bidding Wars: Unlike with existing homes in competitive markets, you’re not likely to end up in a bidding war that drives up the price.
Explore building options in Silverstream here.
Buying an Existing Home
Established homes can have a ‘charm factor’ that newer builds don’t. Hardwood floors, mature landscaping and a sense of history—especially if they’re located in an established neighbourhood—can be a big draw.
Old-world charm has its price, however. Older homes typically require more maintenance than newer properties—think plumbing, electrical, and roofing—meaning additional costs and effort. Depending on your temperament, this could be a mixed blessing. Keen DIYers might find pleasure in making strategic upgrades, and, in the process, increase the property’s value while customising it to better suit their needs.
But existing homes can also come with hidden problems such as poor insulation, outdated wiring, or structural issues, so it’s important to have a professional inspection carried out before purchase—and, indeed, this might be a precondition of getting a mortgage.
Finally, buying an existing home is a relatively simple process, which might suit you better if you want to move into your new home quickly and without too much fuss.
The Bottom Line
Ultimately, your choice will come down to what you value most in a home. Carefully weigh up the pros and cons, and make an informed decision that best suits your needs today and tomorrow.
Silverstream subdivision in Kaiapoi offers the option to build new with various sections available, as well as turnkey packages and completed builds. Accompanied by stunning views, a family-friendly environment, and the perfect balance of modern amenities and green space, Silverstream is the ideal Canterbury backdrop for anyone looking for their dream home.
Whether you choose to build from the ground up or find your perfect match in an existing property, the key is to properly align the decision with your lifestyle, budget, and long-term goals.
We’re always happy to help you work through your options. Click here to get in touch with our friendly sales team.
