What is a realistic budget to own the house of your dreams? Should you build your own home or buy an existing one?
This is a common dilemma that new home buyers face – whether to buy or build based on the budget that you have set. Of course, it would only make sense that you try to get the best possible value. However, it is more than just the immediate price tag that matters.
While buying an established older home may be cheaper than purchasing land to build now, it is essential to consider the costs over the long term. You might remember a series of TV commercials, ‘Compare the Pair’, in which two scenarios were presented and compared side by side. Let’s take a look at this illustration with two homes:
- Consider an established home and a block of land next door to each other on the same street.
- The older established home will cost $750K
- The block of land will cost $400k, with an additional of $450k to build a new home of the same size.
At first glance, the existing home seems to be a better deal, you save an immediate $100k, and you get in move in straight away. Now here’s the difference, fast forward a decade or two later. How much more would you have spent on the older home?
Realistically, when you consider buying your new home, you should also plan for the future in terms of the budget. If you allow for an extra 10 – 15%, you can build a home to your exact specifications and be potentially decades ahead of your neighbours with the extra years of liveability.
Other advantages of building a new home include:
- The value of a newer home will be higher
- 7 and a half years of Warranty
- Energy efficiency (Insulation, appliances, building materials)
- No risk of asbestos
- Latest Building technology vs outdated building methodology
- 90% less maintenance to your home (Potential zero maintenance if designed accordingly)
- Flexibility in design and additional features for an architectural home
- 100% customized to suit the needs of YOUR Family
You might also find that multiple areas tend to require attention in older homes after several years of moving in. This is because plumbing, appliances, and electrical components generally have a shelf life; after such, time will require expensive and extensive replacements. For example, a 2x bathroom renovations and a lick of paint will likely cost you more than the extra amount you have budgeted for a newly built home, not to mention the headache and disruption these works will naturally bring along with them.
Here at Rome, we are founded on family values over three-generations forging a history of construction that withstands the test of time. We embrace the latest innovation, and our projects are a meticulous blend of traditional and contemporary.
Design and build your own architectural home that lasts a lifetime. Get in touch to find out more today.