There are so many different home options out there, it can be hard to understand the lingo and know what will be right for you and your future.
Most first home owners buy something that is already established. But other options do exist.
Buying off the plan, buying established and building new. These are the three main ways people will establish a home. Let’s take a look at the pros and cons of each.
BUYING OFF THE PLAN
What does buying off the plan mean?
Buying off the plan is the process of entering into a contract to purchase an apartment, townhome or house before that property is built.
Benefits of buying off the plan
By purchasing a property that hasn’t been built yet, you may find prices can be lower although this may depend on the market you’re buying in. Buying off the plan may mean you’re eligible for a stamp duty concession subject to government requirements. These vary from state to state so ensure you check your relevant market for the concessions applicable to your situation. Also, off the plan deposits are generally 10% of the purchase price, with the rest of the purchase monies usually payable at settlement.
Buying off the plan
While it’s an excellent way to get onto the property ladder, buying off the plan is not risk-free. The main thing to consider is the market may change after you exchange contracts, which could impact property values. Find more tips to buying off the plan here.
Considerations when buying off the plan
The process will generally involve signing a contract for sale, paying a deposit upfront and then the remainder of the money upon completion. Seek out the advice of a lawyer, solicitor or conveyancer who will take you through the sales process and the contract for sale, so you know your rights and obligations.
BUILDING NEW
It’s your blank slate
A new home is a fresh canvas. You can design it to suit your needs, with all the features and the latest appliances. New homes can be more energy efficient too with the potential to reduce costs.
First home owner grant
When you build new, as a first home buyer, you may be eligible for the first home owners grant which differs from state to state. Building new may also mean the potential for reduced prices and tax benefits like stamp duty reductions.
Building takes time
Purchasing a house and land package is only the first step. Depending on the style of your home, the time it may take to complete can vary.
Building may take longer than buying an established property, but you’ll get a home you want. - Hannah Madill, Aura Development Manager
BUYING ESTABLISHED
Buying established is convenient
Buying an established home may be more convenient as the home may be ready to move in to. Although buying established means you are buying a house not tailor-made for you and subject to the existing state of repair and condition of the established home.
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