Renovate or detonate? The cheaper option may surprise you.
Thursday, 1 September 2016 12:00 AM
Think you’ll save a packet by buying a ‘renovator’s delight’? Think again. Recent research by finder.com.au has revealed that building a new home from scratch could be up to $360,000 cheaper than renovating an older, existing dwelling.*
With scarcity of land an issue in most regions, buyers have two choices if they’re thinking of building a new home: head to a new land estate outside of the city, or purchase an older run down property close to the city and knock it down and build anew.
However the lifestyle drawcard offered by outer suburb new land estates still has it’s allure with 29.4 percent of people in New South Wales saying their preferred location for their dream home was a metropolitan suburb.
For first home buyers, building rather than renovating is particularly attractive thanks to government incentives, grants and stamp duty concessions that can save people an extra $10,000 if they buy off the plan. When you’re on a tight budget $10,000 goes a long way.
One of the key economic benefits of building new is that maintenance on the property is minimal compared to an existing dwelling. You shouldn’t need to account for ongoing maintenance and repairs for at least the first five years.
Also when you build new, you get to design a home, from scratch, that suits you down to a tee. No need to compromise with other people’s sometimes puzzling renovation efforts.
*source Finder.com.au money expert Bessie Hassan. Based on Sydney Prices.