Be it an established house or a new one, first home buyers have been given extra incentive to purchase their first home and should be aware of their housing options.
Low interest rates, the First Home Owners Grant (FHOG) and a more flexible government loan scheme has meant that first homebuyers are in the best ever position to enter the property market.
Ms Sue Marshall, General Manager of HomeStart, a company that specializes in helping low-income earners and first homebuyers said that buyers should do their homework first.
There are pros & cons in both buying an established home and building a new home,” Ms Marshall says.
Following are some points to consider:
Are you buying someone else's problems?
Buyers should be aware that buying an established home also means ‘buying someone else's problems' and many of these problems are not apparent during a house inspection.
Established houses generally require maintenance such as the replacement of gutters, carpets/curtains, plumbing and, in some cases the electrical wiring. Often the property leaks and need repairing.
Although new homes can attract teething problems, Homestart have a six month maintenance period and lifetime structural warranty. This means that if something goes wrong, the burden is clearly off the owner.
What about the cost?
Legal and settlement costs are frequently lower on new homes and stamp duty is only paid on the block price, instead of the whole purchase price like that of an established home therefore the saving with a new home is invariably thousands of dollars, making building a new home a much more affordable option.
Making a home of your own
According to Ms Marshall, the main reason that people make a decision to buy or build is emotional.
A person, couple or family may walk into an established house and fall in love with its ‘look'. They don't mind that the fittings and appliances aren't as new as if they were building.
Alternatively, when they play an active role in designing their dream home, altering plans and colour schemes to incorporate their ideas and lifestyle requirements, they really feel a sense of ownership.
