Explore the pros and cons of established homes, new builds, and off-plan properties.
In our previous lesson, we explored the benefits of using property market research reports. Today, we’ll shift focus to another important decision: whether to buy an established property, a newly built home, or an off-the-plan property. Each option has its own pros and cons, and understanding these can help you decide which is best for you.
Learning Objectives:
Learn the benefits and downfalls of buying an established property, a newly built one, or an off-the-plan property.
Buying an Established Property: Advantages and Disadvantages
Advantages:
Established Suburbs and Infrastructure:
Established homes are typically located in well-established suburbs, often close to amenities such as schools, hospitals, public transport, and shopping centres. This makes them highly convenient for families and professionals alike.
Character and Charm:
Older properties often have unique architectural styles, larger blocks, and mature gardens that give them character and charm, which is sometimes lacking in newer developments.
Ready to Move In:
Unlike new or off-the-plan properties, established homes are ready for immediate occupancy. There’s no waiting period, and you can inspect the property before buying.
Disadvantages:
Potential for Renovations and Repairs:
Older properties may need maintenance or renovation, such as updating kitchens, bathrooms, or flooring. While this may be a minor expense, it could also require significant investment depending on the home’s condition.
Less Energy Efficient:
Established homes may not be as energy-efficient as newer builds, meaning higher energy costs unless you’re willing to invest in upgrades like insulation or double glazing.
Buying a New Property
Advantages:
Modern Design and Energy Efficiency:
New homes are built with modern designs, technology, and energy-efficient materials, meaning lower ongoing utility costs. Plus, you’ll have fewer concerns about repairs or defects.
Move-In Ready and Low Maintenance:
New properties are typically move-in ready and come with little to no need for maintenance. The “new home” feeling, like a brand-new car, is a major appeal for some buyers.
Up-and-Coming Locations:
Many new developments are located in up-and-coming areas with new parks, recreational facilities, and shops. These neighbourhoods may offer growth potential as the area develops.
First Home Buyer Grants:
There are first-home buyer grants available for new builds (off plan, or brand new not lived in yet). This differs per state and is subject to price limits. Here’s the link with more info First Home Owner Grant
Disadvantages:
Further from City Centres:
New developments are often on the outskirts of cities, meaning limited access to public transport and services. This can make commuting more difficult for those who work in city centres.
Higher Price and Fewer Negotiation Opportunities:
New properties are often more expensive, and since developers set the prices, there’s typically less room for negotiation compared to purchasing an established property.
Buying Off-the-Plan
Advantages:
Lower Prices and Potential Stamp Duty Discounts:
Off-the-plan properties are often priced lower than comparable established properties. Some states also offer stamp duty concessions for off-the-plan purchases, which can make it an affordable option.
Customisation:
When buying off-the-plan, you may be able to customise certain aspects of the property, such as interior finishes, floor plans, or fixtures, to suit your taste.
Time to Save:
With off-the-plan purchases, settlement usually occurs months or even years after signing the contract. This gives buyers extra time to save for the deposit or make financial arrangements.
Disadvantages:
Delays or Project Cancellations:
One of the major risks of buying off-the-plan is the possibility of construction delays or, in worst-case scenarios, developer insolvency. In such cases, the project might take longer than expected or not be completed at all.
Uncertainty in Final Product:
Unlike established or newly built homes, you won’t be able to physically inspect an off-the-plan property before buying. The final product may differ from the plans or marketing materials, and you’ll have less control over the outcome.
Potential Market Changes:
The property market may fluctuate between the time you sign the contract and when the property is completed. This could affect the property’s value at the time of settlement.
If you’d like to read ahead, the entire course is available on our blog here
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Have questions about the property type?
If you need more tips or guidance on whether to buy an established property, a new build, or an off-the-plan property, contact us today. We’re here to help you make the best decision based on your goals and circumstances.
Call us at (02) 8313-8400 or request a call back.
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