As a first home buyer, one key decision is between buying vs. building. First homes are special places you work hard for and it’s understandable to want to truly be yours. However, there are pros and cons to consider with each option. Whether one is better than the other often depends on where you want to live, what type of property you want and what your budget is.
Benefits of Buying an Existing Home
Buying an existing home is by far the most common way to purchase property in New Zealand. It’s easy to see why – buying a home that’s already built is far simpler than buying land and building from scratch. It also offers benefits such as:
- Suburb selection – If you want to be close to the city, an older house is often your only option. Most land in central suburbs is heavily built-up, with few empty sections available for purchase. Established homes are also more likely to be in established suburbs, which means handy access to amenities like supermarkets, parks and public transport.
- Set price – When buying an established home, you can always know exactly what you’re spending. Once your offer or auction bid has been accepted and the contract signed, the seller can’t increase the price.
- Move in right away – One clear upside to an existing house is that you can move in right away without having to wait for construction to be completed.
Of course, the biggest downside is that you’ll have to compromise in one way or another with what you want, especially in popular markets like Auckland. You might get the space you want, but not the garden. Buying an older home may also involve fixing it up as well as dealing with major repair issues sooner rather than later.
Benefits of Building Your First Home
A house that is truly yours is one you have built from scratch. Building your own home gives you complete control on function, layout, colour and style. Building your first home can offer numerous benefits, including:
- More choice and control – It can be really hard to find the perfect, established home. Maybe the layout is perfect but you don’t like the garden. Or perhaps it’s a great house but the bedrooms are too small for your needs. You can scrap all that when you are building your own home. Building a new home means you are completely in control from the tap fittings to the splashback design of your kitchen.
- Fewer maintenance and repair costs – When moving into an older house, problems associated with long-term wear and tear often don’t present themselves until after you’ve moved in, leading to costly repairs.
- More energy efficient – Newly built homes are far more likely to use the latest construction and insulation materials to save you money down the track. Newly built homes need to achieve a particular energy rating so hot water, lighting fixtures, heating and cooling are carefully chosen, keeping in mind environmental sustainability and energy efficiency.
Designing a new home from scratch can be costly and time-consuming. That’s where display homes serve as the perfect middle ground. You can often purchase house and land packages, which are customisable, cost-efficient and come with additional benefits such as a warranty on the build.
Contact Mortgage Masters – Independent Brokers in Auckland
Whether you’re building or buying your first home, the team at Mortgage Masters can help find the right home loan for you. We are your independent mortgage brokers in Auckland, servicing the community since 1998. If you need tailored financial advice or helping finding the right home loan for your needs, please get in touch with our team today.