The decision to buy or to build is not an easy one, as each type of property comes with its own set of benefits. Ultimately, it will depend on your budget and the property in question. Think about your personal financial situation, long term plans, and job security. There are some problems with either established or house and land packages that you should be aware of before you go ahead and put down your deposit and sign a contract.

Established

Pros

• Larger land size, more value for money.
• Comes usually with the larger bedroom, specious area, high ceiling and picture windows.
• The most important thing you will have more negotiating power when purchasing an older home, leading to lower repayments and a financial buffer for emergencies and savings.

Cons

• Often outdated kitchens, bathrooms, roof most will need renovations to make it aesthetically pleasing- sometimes turns out more expensive.

House & land

Pros

• Modern design, everything brand new, less worry about something falling apart after buying.
• Tend to be more energy efficient as a result of being constructed with the most up-to-date materials, saving you money in the long run.

Cons

– Often on smaller block of land (can be up to half the size compared to establish).

– When you buy the land you have to start paying A Mortgage with No Income Coming In for some time.

– Most share space with other subdivided properties.

– tend to cost more than older homes, which you will pay for in higher monthly repayments,  Uncertainty about costs and final bank valuation,

– Unsure about build quality?

– Not Always a Fixed price, You Almost Always End up Paying More for Upgrades.

Conclusion

No matter what type of property you are looking for, doing your due diligence paramount. This includes researching the area you are thinking about buying into and getting pest and building reports and valuation.

Considering a variety of property options, and weighing up their pros and cons, should help you to work out which one is right for you.

Thinking about buying a property or land release?

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