Is it better to build or buy a house? Many Australians ask themselves this question, which is a pivotal life decision that will determine their quality of life over time. As a Brisbane luxury home builder with almost three decades of valuable industry experience, Unique Built can provide valuable insight to help you make an informed, long-term decision.
This blog will explain the pros and cons of building a house vs buying a house, offering customers valuable perspective and information. Nowadays, fluctuating prices and economic conditions mean you must decide based on your unique situation and requirements.
The country’s housing market is still thriving despite exorbitant interest rates. Consequently, housing prices in major Australian cities such as Sydney and Melbourne, which are already expensive, continue to soar.
The local construction market has also experienced turmoil in recent years, with some home-building companies shutting down. Industry experts are concerned that other organisations might follow suit.
These are some factors worth considering when buying established house vs building. The following sections will explain the pros and cons of each option, providing clients with a unique viewpoint for this significant life decision.
What Are The Advantages of Buying A House?
An Existing House Meets Your Expectations
Buying an existing residence allows you to thoroughly inspect every nook and corner of the property to understand its overall condition. This comprehensive strategy will enable homeowners to spot flaws, maintenance issues, pest infestation, and other imperfections that your realtor must address, guaranteeing a secure investment.
Homeowners can request the seller to make the sale conditional if the former discovers potential problems, allowing him to back out of the deal. However, purchasing a home at an auction means the sale is final. We strongly recommend that clients do extensive research and inspect the premises before buying a house in this manner to prevent possible issues and make a sensible buying decision.
Buying A House May Be Faster
As an established, reliable contractor of custom designed homes Brisbane since 1996, we know it’s faster to purchase and move into an established residence than to build a new one. Depending on your preferred settlement period, you can move into your new abode within a month of signing your contract, saving time and allowing you to enjoy your new living space sooner.
Conversely, building a house in Australia takes longer than one month, typically six months to one year. Complicated projects, such as houses on sloping blocks, take longer.
Essential factors include the following:
- The house’s size and design
- Approvals and permits
- Site feasibility
- Climate
Ideal Locations May Facilitate The Process
Clients who prefer an inner suburb location should know there are few vacant lands close to the central business district (CBD). If their realtors find a vacant lot, they are pricier than those in adjacent suburbs because of its strategic location and CBD proximity. However, if your primary goal is living in premium urban locations because of their convenience, it’s worth every cent.
We recommend considering a knockdown rebuild for clients who want to build a residence close to the CBD. This strategy involves purchasing an existing house and demolishing and rebuilding it. Finding vacant land in nearby suburbs is a practical option for families who prefer building rather than buying a home. Modern housing in these areas includes public transportation, medical facilities, schools, and shopping centres.
What Are The Disadvantages of Buying A House?
Functionally Obsolete
An existing home may have pleasing aesthetics and look good on the outside. However, the interior paints a different picture. Prospective buyers who thoroughly inspect the premises may discover problems with residential structures that have existed for a long time, including the following:
- Foundational issues, including wall cracks, malfunctioning doors and windows, and uneven floors
- Deteriorating roof
- Dangerous building materials, including lead-based paint and asbestos
- Hazardous gases
- Electrical and plumbing issues
- Energy inefficiency
- Malfunctioning appliances, including inefficient furnaces and air conditioning systems
Potential Renovation
Despite many established homes having decent structural integrity, contractors may recommend a thorough renovation to enhance functionality and convenience. Your builder may recommend demolishing walls or building a new kitchen or bathroom.
Although clients can ask their contractors to perform these tasks before relocating, renovations require time and money. Alternatively, clients can gradually move into their new abode and refurbish their premises instead of doing a complete renovation.
Remember that living in your new residence with ongoing renovations can be daunting and inconvenient. Sometimes, homeowners must settle into a temporary shelter while contractors revamp their kitchens or bathrooms for several weeks.
Renovation may set your project timeline back by several weeks or months. We encourage clients to consider this factor to avoid potential inconveniences and setbacks.
Steeper Government Fees
Clients who buy an established home must pay stamp duty, a transfer duty tax that each Australian state and property charges for purchases. This extra fee will considerably increase your overall expenses. Stamp duty could be less if clients purchase vacant land, so ask your realtor about this fee before making an informed buying decision.
What Are The Advantages of Building A House?
A New Build Meets Your Unique Objectives
There’s no greater satisfaction for clients than moving into a brand new home that’s uniquely theirs. Whether buying a new residence or building your dream house, you know you’re moving into a dwelling somebody didn’t previously inhabit.
Potential Access To Grants And Stamp Duty Concessions
Most Australians can access the First Home Owners Grant (FHOG), which entitles them to $10,000 and $30,000 in grants. To receive the funds, given to people purchasing or constructing a brand-new house, they must prove to their respective territories that it’s their initial residential purchase and meet other eligibility requirements.
Although the FHOG rules may differ across Australian territories, ACT doesn’t participate in the program. Instead, the territory provides residents with stamp duty concessions.
Another benefit of building a home is paying only stamp duty on the vacant lot instead of the structure. Stamp duty requirements differ among territories, so consult a tax professional before purchasing the vacant land.
Constructing An Energy-Efficient House
Prudent homeowners take advantage of unique opportunities, like building an energy-efficient residence. Constructing a house with energy-conserving features helps them save money and leave a positive environmental impact, which is beneficial for their peace of mind and comfort.
Several energy-efficient measures include the following:
- Advanced house framing
- Cool roofing
- Passive solar home design
- Earth-sheltered or log homes
- Sealed ductwork
- Ceiling fans
- Insulated doors and windows
- Tankless water heaters
- LED lighting
Minimal Maintenance
Brand-new houses adhere to strict building codes and implement state-of-the-art technology, resulting in minimal major maintenance requirements for the first few years. No leaky roofs, faulty plumbing, or malfunctioning HVAC systems mean stress-free living for homeowners.
What Are The Disadvantages of Building A House?
Construction Industry Unpredictability
Many Australians considering building a new home are leery about construction firms shutting down and abandoning clients midway through the project. According to the Australian Securities and Investments Commission, 2,300 construction companies entered external administration, constituting 27.7% of all organisations and an alarming 75% increase from the previous year.
These findings indicate that many construction firms are under financial duress due to factors including exorbitant interest rates, material costs, and labour market shortages. The surge in companies declaring financial hardship means most cannot fulfil fixed-price contracts at a time when contractors are still reeling from the effects of COVID-19 in 2020.
Soaring Expense Possibilities
Clients might spend more than expected when buying or building a new house. Significant factors, including material shortages, labour costs, and prolonged delays due to inclement weather, may force you to dig deeper into your pockets.
Pricing surges for Australian clients who signed fixed-price building contracts have become more prevalent in recent years. Supply chain issues, material scarcity, and rising equipment costs cause them to exceed their projected budgets.
As Brisbane’s trusted home builders for nearly 30 years, we strongly recommend carefully reading contracts and seeking legal counsel before agreeing to pay price markups on a fixed-price contract.
Clients buying a new house should ask their lawyers questions about inclusions and extras to avoid unnecessary extra costs. Many homeowners sign a deal only to find out the seller didn’t include standard fixtures and fittings in the contract, forcing them to pay extra.
If you’re building a new residential structure, we encourage you to read your contract carefully, poring over potential inclusions and exclusions to prevent numerous add-ons from straining your wallet.
Whether buying or building a new house, prudence is essential to sticking to your budget.
Sloppy Construction Work
Building a new house entails due diligence. You must hire highly skilled and experienced contractors with excellent track records.
A new house build requires staggered payments, with your builder collecting the final compensation at the project’s completion. Conducting a pre-handover inspection is essential before the final payment to rectify any issues before receiving the keys to your new home.
Clients experience stress and hassles when significant building issues arise. If you encounter a major problem and fail to compromise with your contractor, you may need to escalate the issue to your state’s consumer affairs governing body or a lawyer.
Ironically, industry aficionados have observed that some brand-new houses aren’t as sturdy and resilient as established residences. However, remember that this is a subjective view. Your new build hinges on your service provider and material quality.
We strongly recommend asking family or friends who previously purchased or constructed a new house about issues they encountered. Heeding their advice will help you avoid pitfalls and headaches associated with new builds.
Construction Loan Time Constraints
Remember that house construction loans have time constraints, especially at the beginning of the build. Depending on the financier and project scope, many lenders require homeowners to pay off their loans within six to twenty-four months. Some lenders require clients to begin construction shortly after purchasing vacant land.
Although you can discuss potential loan issues with your lender and builder before the project begins, it’s imperative to know that construction loan time frames can be restrictive.
How Much Does It Cost to Buy A New House?
You may be wondering about the expenses of buying or building a home. According to the Australian Bureau of Statistics, an average Australian home costs around $960,000 and a typical three to four bedroom unit costs between $1400 and $4000 per square metre.
Location is a significant factor in determining home prices in 2025. For instance, a typical median property in Sydney, NSW, costs $1,200,000, somewhat higher than properties in Perth, WA, which have a median price of $1,075,000 for a house and $500,000 for a unit.
Discuss potential hidden costs with your builder, including the following:
- Stamp duty
- Property valuation charges ($100-$300)
- Home loan application fees ($200-$700)
- Legal and conveyancing costs ($700-$2,500)
- Mortgage registration and transfer fees ($500-$1,600)
- Pest and building inspection fees ($300-$700)
- Council and water rates ($600-$1,500)
- Lender’s mortgage insurance (1-3% of loan)
- Moving costs ($80-$300 per hour)
Some territories exempt homeowners from some of these taxes, including stamp duty. Nevertheless, these exemptions won’t significantly affect the exorbitant rates for buying a new house. Recurring expenses such as repairs, council rates, and insurance make things more challenging.
How Much Does It Cost to Build A New House?
Clients who prefer building a home will pay most of their expenses from purchasing or leasing land and material costs.
Australia’s average home building cost in 2025 is between $611,298 and $1,000,056 or $620 and $3,900 per square metre. Please remember that these prices will continue escalating because of rising real estate costs. Your construction expenses will also significantly increase when considering labour expenses during workforce shortages.
Here are other factors that affect house-building costs:
- House size: Bigger residences require more labour and materials.
- Quality of finish: Superior finishes need premium materials.
- Additional components: Swimming pools, patios, fencing, and landscaping significantly increase expenses.
Fortunately, Australians who prefer building a new home pay cheaper stamp duty taxes and receive more grants than home buyers.
The Final Word
Buying or building a house can be confusing and intimidating. Thorough preparation and research can help homeowners make a sensible, long-term decision.
As Brisbane’s trusted home builders since 1996, we recommend weighing the pros and cons of each option to gain a broader perspective. Asking family members, friends, contractors, and your legal team can help you find an alternative that better suits your preferences and current situation.
Contact us today if you’re interested in building, remodelling, or considering a knockdown rebuild in Brisbane or surrounding neighbourhoods. Our hardworking staff will conduct a site inspection and design an upfront estimate that fits your needs and budget.
