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Is it cheaper to build or buy a house in Australia?

Is It Cheaper To Build Or Buy A House

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Buying a house is one of the biggest investments you’ll ever make in your life. You can either build or buy your first home. If you’re looking for a property in the Australian market, it’s wise to hire an independent mortgage broker in Melbourne. But, before you start contacting companies like What If We Finance, it’s best that you learn about your options first so you can tell the broker you’ll be working with what you want. So, let’s start by answering the question, is it cheaper to build or buy a house in Australia?

Should You Build or Buy Your First Home?

To answer this question, let’s first look at the costs of building a home. The biggest part of your budget will go to the fees involved in acquiring a vacant lot located in Australia’s capital. If you’re a first-time land buyer, you are eligible for stamp duty (tax levied by all Australian territories and states on property purchases) exemptions which could lower your initial expenses. Currently, the national average of a patch of land is around $322,000. If you’re not a first-time buyer, there are several stamp duty calculators you can use online to get an idea of the stamp duty you will likely owe.

How Much Does Building a House Cost?

It’s relatively easy to buy a piece of land. However, building a house on it is a different story altogether. The cost will ultimately depend on how big the house will be if the land needs levelling, what materials will be used, and of course, the labour and equipment costs. 

Some people spend roughly the same amount on their house as they did on their land, some even more. The amount of work will probably put you off and make you think that buying a house vs building a house is a no-brainer, but don’t decide just yet.

girl working

What Are the Advantages of Building a Home?

Despite all the costs associated with building a home, it comes with plenty of advantages. For one, you can customize according to your demands and make your dream home come to life. You can make the windows as big as possible, and you can add partitions and create as many rooms as you want (so long as that’s physically possible). There’ll be no need for modifications because the house will be designed exactly how you want it. After it’s built, all you have to worry about is the upkeep.

How Much Does Buying a House Cost?

The selling range of buying a house is quite big. But, in general, it’ll cost upwards of $500,000 to buy a fully finished home in top cities in Australia. So, given this amount, is it cheaper to buy land and build a house as opposed to buying a ready-built home? Not exactly. You have to keep in mind that finding a home that’s exactly what you want isn’t going to be easy. You will always find something you want to change especially when it comes to “templated” homes. So really, that amount will end up being higher if you account for possible renovations.

What Are the Advantages of Buying a House?

One of the most significant advantages of buying a house is convenience. Sometimes, it can be as simple as making a phone call or browsing online for properties for sale. Financing is also a lot easier when buying a house vs building a house. Sure, a minimum of 20% deposit is typically expected, but some lenders will let you borrow over 90% of the property’s value at reasonable rates.

Another advantage of buying a house is that you have a clear idea of what you will be getting. There won’t be any failed expectations because you’re buying an already built properly. There won’t be any surprises as long as you have had it inspected prior to completing the purchase.

man looking

Buying a House Vs Building a House: What Are Your Home Loan Options?

You can either get a housing loan if you want to buy an already established property or an existing home. You also have the option to get a construction loan for the purpose of building a house from the ground up or doing major renovations. Whichever you decide, you have to keep one crucial thing in mind, the shorter the term you choose, the less money you have to pay back. Also, consider options where you have to pay a fixed amount monthly instead of varying amounts to help you manage your expenses better.

So is it cheaper to build or buy a house in Australia? There is no one correct answer to this question. In the end, it depends on the buyer and what they consider a good deal.

If you want quick, convenient, and professional financing for your first home, What If We Finance is here to help. We make finance simple, and we make sure you have all the support you need seven days a week. We’ll be more than happy to help you get started!

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Matthew B
Matthew B
2022-06-05
Looking at the reviews for What If We Finance, it comes at no surprise to see so many 5-stars. Spiro handled the mortgage part of my girlfriend and I purchasing our first home. He made himself available to us around the clock and ensured that we were across the entire process and felt as comfortable as possible. We're very fortunate to have gone about buying our first home with Sprio and we'd be more than happy to use him for future purchases and to refer on to family and friends. A big shout out to Agnes also who busily works away in the background and also does an incredible job. You guys are the best!
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hari gowtham
hari gowtham
2022-06-03
Very happy with the results from Spiro from start to finish. Spiro and his team are very knowledgeable and have a very quick turnaround time. Couldn't be more happier with the service. Definitely my go-to person for upcoming purchase.
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Gary Shekhter
Gary Shekhter
2022-06-02
Great broker and trustworthy. Honestly had seen 5 brokers and fund this wonderful guy. Who helped from start to finish fast and had our loan in no time at all. Thank you again champ you did an amazing job
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Leonie Kemp
Leonie Kemp
2022-05-29
Thank you Spiro and Agnes for helping with the purchase of my first home. I needed to arrange finance quickly and Spiro did a fantastic job letting me know the best options for me and pushing to get the pre-approval so I didn't miss out on purchasing my home. Everything went very smoothly, thanks for helping make my first property purchase straightforward.
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S S
S S
2022-05-28
Thank you Spiro and team for your help in financing the mortgage for the recent property purchase. Spiro provided timely advise, guided me on the process and was swift in processing the documents. His friendly attitude makes the process even better. Thank you once again.
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Anita Naughton
Anita Naughton
2022-05-27
As a first home buyer I had very limited knowledge on what I needed to do. I searched for a broker and What if we finance stood out due to reviews. I had my first session with Spiro and never looked back! The whole process was seamless, I felt supported and could always connect with Spiro when needed. Spiro and Agnes are experts in what they do and I would highly recommended anyone looking for finance to choose What if we finance. I will be a lifelong customer and look forward to buying our next house with their support.
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Mahmoud Al Kilzi
Mahmoud Al Kilzi
2022-05-25
Spiro & his team did a great job by getting my loan sorted in time. I would recommend them to family & friend. Great work guys much appreciated.
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Rebecca Zeeman
Rebecca Zeeman
2022-05-20
Spiro and Agnes provided great help and advocacy in getting us our home loan. We felt they were always available and were super efficient in getting it all done on time! The process was so simple and without stress thanks them both.
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Irish Azcuna
Irish Azcuna
2022-05-09
I can’t thank Spiro and Agnes enough for making my first home purchase so efficient, stress-free and seamless! If I could give more than 5 stars I would. As a first home buyer applying for one or the government’s schemes, my situation would have been so complicated that I never imagined being able to complete the process in such a short time. Spiro’s in-depth knowledge, invaluable and always-available support, and genuine willingness to help get me the right mortgage for my situation, made everything possible. His pragmatic advice even helped me decide on the right property for us, which would help us achieve our long-term goals. I highly recommend Spiro and his team. We will definitely engage their service again for our next property. They are the best!
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Renee Briggs
Renee Briggs
2022-05-02
Spiro is reliable, has your best interest as his top priority and is fast to get great results. We wouldn't ask anyone else for their professional opinion- Spiro is the best in the business.
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