Deciding whether to buy a new or established home is one of the toughest decisions a first home buyer has to make when they are in the process of searching for their first home.
WHAT IS THE DIFFERENCE?
An “established” home is one that has been occupied before. An established home can be as little as one week old to fifty years old – once the premises are occupied it becomes an established home.
A “new” home is one that has not been lived in before by anyone nor has it been rented. A new home can be one that has recently been completed, is being constructed or will be built by the first home buyer.
WHY SHOULD I CHOOSE A NEW HOME?
Whilst buying a new home can be time-consuming it has the following benefits for first home buyers.
- Grants (FHOG) – if you buy a new home you will be eligible for the First Home Owner Grant(FHOG) across each state/territory in Australia. The FHOG ranges from $10,000 to $20,000. Click here to check the FHOG available in your state https://fhba.com.au/first-home-incentives-grants/
- Stamp Duty Concessions – Along with the FHOG most states will also provide either a full stamp duty exemption or a concession. If you buy land and build, you may also qualify for a partial/full exemption on your stamp duty, depending on the state/territory you are located in. Click here for information on your state/territory https://fhba.com.au/first-home-incentives-grants/
- New Home Feeling – A new home will minimize your potential future repair and maintenance costs as new homes tend to require fewer renovations. It also ensures you are the first person to occupy the house.
- Future benefits – If you plan to convert your first home to an investment property, a new home can provide greater advantages over an established home as it may result in a higher rental return.
WHY SHOULD I CHOOSE AN ESTABLISHED HOME?
- Stamp Duty Exemptions/Concessions – All states except South Australia provide stamp duty relief for first home buyers, for the purchase of established homes.
- Potential lower prices – It is widely accepted that first home buyers pay a premium for the purchase of new homes for that new home feeling.
- Location – New homes tend to be situated in areas where there is a new land supply which is more likely in areas further away from the CBD. Whereas, an established home will likely be located in more desirable and convenient locations.
- Land size – New land estates are selling blocks of land as little as 120sqm in size. Whilst established homes are older in building age, they tend to have increased land sizes in comparison to new homes.
WHAT SHOULD YOU USE?
Whilst the above outlines the advantages of buying new and established homes, every first home buyer’s situation is different and their needs differ. Hence, it is a good idea to speak to an FHBA Coach.
Contact us today to see what type of home that is most suitable for you https://fhba.com.au/contact/