Everyone need a place to call home. When the opportunity comes to get a suitable place to live, there is usually a major decision to be made.
This decision involves whether to build a new home or to buy an existing property. On face value, this may seem like an easy decision.
However, this is not as easy and straight forward as it sounds.
New houses are – well – new, and everyone prefers new things over old things.
It can be said that newly built houses offer a wide range of advantages to the homeowner.
This includes the ability to choose a suitable floor plan and install state of the art appliances and up to date amenities in the new home.
On the other hand, building a new home has its disadvantages such as suitable locations where you can build your new home being limited.
Also, the cost of a new construction ultimately outweigh some of the lifestyle benefits highlighted above.
Existing properties provide a higher level of flexibility to the home buyer, both in location and cost, but they too have their own share of downsides.
For starters, securing adequate financing to buy an existing property in Melbourne may prove to be difficult especially if you have a weak credit score and no collateral.
On top of this, the best properties on the market usually attract stiff competition for buyers which can lead to over-exaggeration of prices.
All in all, there are plenty of things to consider when choosing between building a new home and buying an existing property in this area.
It’s crucial that you consider all the variables before committing to any one side of this dilemma.
If you are looking to get a home in the near future, following are some key points that you should consider in order to make a well-informed decision:
Cost is at the top of the list of considerations you need to make.
Home buyers, in particular, have to deal with the cost issue upfront as there is usually a big difference between the cost of an existing property and the price of building a new home.
Building a new home is often more expensive than purchasing an existing property as there are often extra costs bobbing up as part of the construction process.
This is evident in the price of a new home being considerably higher than that of an existing home in the local real estate market.
On the other hand, the cost of securing an existing home is lower than that of a new construction.
On top of this, there is usually room for price negotiations when purchasing an existing property, which can result in an even lower price.
All these cost considerations should be made before you make your final decision.
Repairs and Renovations
Of course, if you choose to go down the existing property route, you will most likely have to deal with the issue of repairs and renovations.
Newly built homes rarely require repairs and renovations as they are new and have been built according to the specifications of the homeowner.
On the other hand, existing homes may be old, in some cases decades old, and many need major repairs and renovations in order to become habitable.
These repairs and renovations will ultimately increase the cost of the purchase but overall, do end up costing you more than you anticipated.
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There is more to think about when getting a new home other than just the cost. There is also the question of location and your personal/family lifestyle.
The option of buying an existing property gives you the flexibility to choose a suitable location that you would like to live in.
However, the option of building a new home limits you as you cannot build when there is no space to build on.
These are just some of the considerations you should make when deliberating on whether to build a new home or buy an existing home in Melbourne.