Build or Buy? Part 1 – New Builds

3 MIN READ June 30, 2021
Whether you’re looking for your first home or your next home, it can be tricky to decide if you should purchase an existing property, or build your own. A new build can take a long time to be completed, but it can be tailored to…


  • Lower maintenance costs
    When you purchase a new build, it’s likely that you’ll have little to no repairs or maintenance to worry about for a good few years. Everything is brand new, so you shouldn’t need to fix or replace anything for a while, especially if you have a 10 year builder’s guarantee.
  • It can have a higher value
    Once your build is complete, it can be worth more than what you initially paid. For example, if you bought a section for $300,000 and also paid $300,000 for the build, it’s possible that the end result could be worth more than $600,000, creating instant equity for you.
  • Tailored to your needs
    Depending on the kind of build you’re going for, you can usually have a lot of say in how you want your new home to look. You can choose the colours and features that work for you, and design the layout in whichever way you like.
  • Lower deposit
    New builds are generally exempt from LVR restrictions, meaning that you may be able to purchase your new build with a lower deposit, sometimes even 5 or 10%. This is a great option for first home buyers who may be struggling to reach a 20% deposit.



  • You might not have that much control
    Lower cost new builds are usually built to a specific plan, so you may not be able to adjust the design as much as you’d like. Although it might be less expensive to build a new home, if you want to tailor it to your needs it may end up costing you more overall.
  • Finding a good location can be difficult
    Obviously when you’re building a new home, you’re bound by the locations where land is available. If you want a prime location, there may be some restrictions around the size of your build and the area amenities.
  • Getting a loan isn’t easy
    Banks and lenders typically have different conditions for lending for a new build. As there are a few payment options with new builds, make sure you choose one that will help with your finance, such as fixed price contracts. These give the bank or lender a bit more certainty about how much you will need to borrow.
  • It can be a stressful process
    This is the aspect of a new build that can put people off the most. Even if you are buying a new build with an existing plan, delays and dealing with contractors can still become stress-inducing obstacles. If you’re designing it yourself, there’s a lot more time and effort that will need to go into it – but it might be worth it in the end!

Looking to finance a new build? Our expert mortgage advisory team can discuss all of your options to help you get it right. Get in touch with us today!


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