Entering the property market can be a daunting experience. All those open home inspections, intimidating auctions and inflated prices. Even the most basic home can seem out of reach. But did you know that an established home isn’t always the cheaper or faster option?  Today, many prospective buyers are choosing to construct their homes. If you’re a prospective buyer weighing up your options, Easystart Homes has put together the must-knows about building vs buying so you can make an informed decision. In this article, we ask the question, is it cheaper to build or buy? Let’s discover the answer.

The real estate market today

Australia’s housing market has become increasingly difficult to enter, showing no signs of slowing down. In fact, over the past five years, the median home value has jumped by approximately $230,000, marking a whopping 39.1% increase. 

Adding another roadblock, popular urban areas are also experiencing a shortage of available properties. With limited houses in these sought-after locations, buyers become even more competitive, leading to bidding wars and higher prices. However, it’s not all bad news for prospective buyers.

Constructing a new home offers a unique opportunity to sidestep many of these issues. As well as the lower cost of building vs buying a home, you have the freedom to design your home exactly as you want, deal with fewer maintenance and repair issues, and reduce your long-term utility costs. And thanks to Easystart’s developer networks, you get exclusive access to land with our supportive and dedicated team by your side throughout the entire building process. 

Cost of building vs buying: where you can save

When it comes to budget, is it better to build or buy a house? As it turns out, constructing a new home has a few financial advantages, especially for first-time home buyers in Australia. And as established home prices continue to rise, many people are increasingly concerned about how they’ll afford to buy. Thankfully, constructing your own home leads to significant savings in plenty of ways.

• Reduced or zero stamp duty on land

Stamp duty is one of the biggest considerations in the ‘Is it cheaper to build or buy’ debate. The property purchase tax makes up a sizeable portion of costs when you buy. But if you’re purchasing a house and land package rather than an established property, you pay stamp duty only on the land. In Western Australia, first-home buyers avoid paying stamp duty on the purchase of vacant land altogether if the land value is less than $350,000.

• Available grants 

The Australian Government’s First Home Owner Grant (FHOG) helps first-time buyers purchase or build a new residential property and potentially reduce their interest rates. The grant amount and eligibility criteria depend on your location, but usually, it’s around $10,000. Since established properties aren’t eligible for the grant unless they’ve never been lived in or are substantially renovated, building is the best way to get the grant. 

• Hidden savings

One of the biggest burdens of home ownership is paying for renovations and repairs. When you construct your home and design it to your specifications, there’s no need to renovate. And as a new build, there’s minimal chance you’ll have to fix anything major within the first 10 years. 

• Easystart’s finance benefits

Is it cheaper to build or buy? Our in-house finance brokerage, Westgate Finance, can help you answer that with a customised land and construction loan that suits your needs. We assess your financial situation, check your eligibility for government grants, and ensure your loan repayments are manageable. ​Better still, building with Easystart is more than a savvy financial decision; it gives you a supportive partner on your home ownership journey.

Why building is better than buying

Still wondering, ‘Should I build or buy a house?’ Here are a few ways that building a new home of your own design with Easystart is better than an established one.

• Tailored to you: Your home is yours for the making, with the features, layout and finishes entirely up to you.
• Built to last: New homes have fewer maintenance issues — especially in the first decade — thanks to modern materials and high building standards. 
• Energy efficiency: New homes are built to reduce power bills and have less of an impact on the planet through inclusions such as insulation and glazing. Solar panels are standard on all Easystart homes, so you can enjoy lower energy costs now and into the future.
• Lower ongoing costs: There’s less need to repair or renovate compared to an older property, meaning lower costs.
• Equity potential: Building in high-growth areas and accessing early land releases can increase your home’s value sooner. 
• Future-proofed design: Built with resale in mind, new homes give you the option to sell or stay in the future.

Buying versus building with Easystart

3-bedroom, 2-bathroom home with a double garage in Baldivis

Building vs buying a home? Talk to Easystart

Having a home that ticks all your boxes in design and practicality is one thing, but making a smart financial decision that sets you up for the future is another. 

Easystart offers finance guidance, land access and expert support so you can start constructing your home sooner, without the stress. Curious if building is cheaper for you? Chat with our team for a quick finance check-up and explore your options.