Building vs. buying a home 

After walking through a display home you love, you may want to build it exactly as is. If you want to make your own changes to existing plans or even design from scratch, you can do that too. In fact, it’s all up to you – the style of bricks, tiles, carpets, taps and door handles, and even where your power points and lights are placed. 

When you buy an established house, you pay stamp duty on the purchase price, whereas when you build, you typically only need to pay stamp duty on the land price. This could save you a significant amount in upfront costs.

Building and then renting out a new home can be an effective way to invest. You can take advantage of better capital depreciation with a new home, as you can claim deductions over the maximum life of the property.

If you buy the right sized block which is eligible for subdivision, you could build more than one home and really start to develop your property portfolio. You could save time and potentially money by building more than one home at once, or by building in a certain position on your block to allow for future development. Each council will have their own rules and regulations about subdivision, so make sure you do your homework.

When everything is new, it means less repairs and maintenance around your home.

When you take out a construction loan to help you fund the build, the money is released in stages as the building work progresses. This helps to make sure you're only paying for work that's been completed. What's more, you only need to pay the interest on your loan until your home's built. Making lower repayments during the construction period could mean you have some extra cash up your sleeve for things like expenses you didn't see coming or rent to stay somewhere while you're building.

Find out more about construction loans

Like with any home purchase, there are risks involved in building. Some of the main ones include:

• The quality of the building not being to your standard
• Construction not being completed on time
• Unexpected costs found during the site preparation or for things not covered in your building contract
• While you get to design the house and choose everything, your budget may restrict you from getting everything you want. For example, those higher quality fixtures and fittings you have your eye on may not be in the budget.

Careful planning is crucial to help minimise the risks. It’s important to consider all your options, do your research and even seek out professional advice before making a decision.