Choosing to build a new home can be incredibly beneficial to families, first home buyers and investors.
Reasons for such a decision can include the home buyer growing out of their current home, choosing to run a business from home, the need for more space or a different location, a lifestyle change and the list goes on.
However, research suggests that record numbers of people are choosing to improve their homes with extensions and additions as opposed to moving altogether. Reasons for this change in trend vary depending on location and of course the continual adjustment of interest rates.
“For many homeowners, the cost of moving is prohibitive because prices are so high, a problem compounded by the crippling cost of stamp duty,” Becky Barrow from Mail Online said.
Homeowners are also taking advantage of the cheapest interest rates in history, opting to pay off their mortgages early or choosing to add value to their property with additions like an outdoor alfresco area, new kitchen or bedroom extension.
The decision to move or improve differs from person to person, family to family, but there are positives that come with both options.
Chris Dodt from Hotondo Homes in Gympie believes the benefits of building a new home are widespread.
“Clients come to us wanting to build their dream home. They want something new and fresh, as well as something that will fit into their budget, lifestyle and family requirements,” Chris said.
The benefits of building a new home can include:
– Building to suit the individual needs of the person/ family
– Energy efficiency
– Less stamp duty
– Less maintenance
– Home warranty
– Increase in equity
– No need to spend money on renovating or changing an existing home to suit current needs
– Ability to build in the ideal location
– Appliances and fittings under warranty
– Home built to latest regulations and building standards
– New homes depreciate less than existing dwellings
While many people will choose to build a new home to suit their specific needs, others will choose to improve their existing home and renovate.
The benefits of this can include:
– Saving money on selling and moving costs
– Improving the value of the home (as long the improvements don’t overcapitalise the property)
– Staying in the same location
– No need to find a block of land
“Renovating an existing property works for families that love the block of land they’re on and the exact location they’re in. However, I’ve found that building something new is often the preferred option,” Chris said.