When considering home ownership in Australia, many buyers only consider what would be considered a turnkey home. However, options for building houses also exist, especially in the outermost areas where there is more land available to consider construction as a viable option.
Wellard’s land for sale is one such example. That said, just choosing to build versus buying pre-built is a little more complicated than just choosing one over the other. Prospective homeowners need to do a little research to fully understand the differences involving the benefits and challenges of each.
Cost
One of the first things that will arise is the issue of cost. While building may seem cheaper at first, the buyer must understand all the costs involved, not just pure construction costs. Often, these costs are spread out and cash flow must be available to cover them when they hit. Often buyers must first draw out a construction loan to influence construction. Then, when construction is fully completed, a second loan will need to be taken out to pay off the construction loan and actually finance the property for an extended period of time, similar to financing the purchase of a regular home if it was previously built.
The down payment required can be more than that for ready-to-use homes, as much as 6 percent or more. However, there are also tax advantages to building a home, which can offset the overall cost. And the down payment or fees can be offset up to $8,000 from the South Australian Government’s First Home Bonus Grant, which can be used to build a home as well as purchase.
Buying a ready-made home, in comparison, includes all costs in one package. So the total price paid includes the building, permits, builder’s benefit, taxes and property value. Because the property is finished when the loan is applied for, it becomes collateral for the home loan, securing it if payments don’t follow. Less money may be required for the down payment as well. Homebuyers can get financing for as little as 3 percent on the table. Finally, new homebuyers can apply for government assistance with grants ($8,000 from the South Australian Government First Home Bonus Grant and $7,000 from the First Home Owner Grant).
While guesses and guesses can be made, it is very important to work with a building expert to fully understand the building versus buying pre-built process to get a full picture of the associated comparisons, whether they are land for sale in Wellard or another location.
Location
Where a home is built or purchased has a large impact on its long-term value as well as the ability to enjoy the property as an owner. Locations closer to the city center will be more expensive because various resources are readily available.
Vice versa, overseas locations will be cheaper to property but more infrastructure will have to be built to maintain the home (otherwise everything from water to electricity will have to be brought in).
On the other hand, location even in the same category can be good or bad. Many urban locations are cheap because the area is depressed or has social problems such as crime. There are also many rural locations which are a bad idea because they are prone to flooding or are at high risk of pest infestation. So each location needs to be checked.
For the most part, pre-built areas will often be cleared as estates as developers will build between 20 and 100 houses at a time. That means public land will be cleared of problems and infrastructure will be installed, such as sewers, electricity and water. The building site is completely dependent on the buyer to maintain the area. Failure to thoroughly inspect the property can result in serious shocks such as unstable ground, sinkholes and other hazards. There are still good locations too, such as land for sale in Wellard.
Conclusion
There are other differences buyers need to be aware of, including how long and when to build versus the convenience of buying a home when it’s ready. On the other hand, building obviously gives a much better advantage of customizing the house to certain wishes. There is no set standard for what should work in every situation because people’s needs are different. This is why research and getting expert advice is so important in making a buy vs. buy decision. get up.
As a result, prospective homeowners should spend some time doing their homework between the two home options. There is a lot of information to consider, and good research will make all the difference in the decision to make a decent home or a long-term financial mistake.
Properties of Cedar Wood has been creating award-winning residential communities for 25 years and is a highly reputable property developer. Founded in 1987 and listed on the Australian Securities Exchange since 1994, the company has helped thousands of people contact Cedar Woods plantation houses.
Our project in Wellard is called Emerald Park. Visit us at www.emeraldpark.com.au to find out more about our land packages.
