At Elanora Realty, we often get asked whether it is better to buy an established home on the Gold Coast or to build a new one from scratch. While both methods offer significant benefits, it ultimately depends on your priorities as a buyer.
Perhaps the most popular reason for building a new property is that you get to design your home the way you want it. You get to choose how big your rooms are, whether to have a butler’s pantry, where to place the kitchen island and a whole lot more.
Another positive is that everything in your home will be new. All your fixtures and fittings, and in many cases, your kitchen appliances are included in the build cost. As everything will be new—and energy efficient—your property will require little maintenance initially.
Building a new home from scratch, however, does have some drawbacks. Depending on how you purchase it, new build property is often overpriced for the market. Once you factor in the land, building cost, builder’s margin and salesperson’s commission you will find you probably could have bought an established one for less. Just have a look at established properties on the market right now to compare.
You will also have to start making payments before your property is move-in ready. This means you will have to pay rent or your current mortgage on top if making mortgage repayments on your new home. So, you will be making have double payments for a while.
Cost blow-out is another financial concern. It is quite common for builders to underestimate their costs. Some builders don’t include driveways, floor coverings or landscaping in their quotes. There could be a number of hidden costs, you didn’t think of. You also need to be aware that there could be delays and complications that could impact your budget.
In summary, the benefits of a new build are:
- Can be built to your exact specifications
- Lower ongoing costs in terms of maintenance and energy
- Issues and defects covered under warranty
On the Gold Coast, it’s more likely for an established property to be located closer the beach or community hub than a new home. Vacant lots (new builds) tend to be further out and consequently further from amenities and infrastructure than established homes. Not only that, plot sizes are getting smaller and established homes tend to be on larger parcels of land.
The process of buying an established property is quicker than building a new home. New builds usually take months to complete and can run into delays setting you back further. What’s more, an existing home will probably have an established yard, fencing, paths and driveway. In an area with parks and trees. These things are often lacking in new housing developments.
In summary, the benefits of buying an established home include:
- Location to amenities & established infrastructure
- Larger land parcel
- Comes with established landscaping
- Can move in quickly
Give us a call to discuss your property requirements or use our form to book a free appraisal of your current home. In the meantime, you can download our free buyer’s and seller’s guides for more information.