Building vs. buying a home 

Ask anyone who’s built a home what they loved the most about building. Chances are, they’ll tell you the best part was getting exactly the kind of home they wanted.

Building a home takes time, money and effort, but the end result can be worth it. Here are some of the benefits and things to keep in mind to help you decide if building a new home, rather than buying an established property, is the right move for you.

Advantages of building

You choose everything, from the floor plan to the finishes 

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. 

You could save on stamp duty

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.

You can build as an investment

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.

Less maintenance equals more leisure time

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

Keep in mind…

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. 

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Things you should know 

The information contained in this article is of a general nature and is not intended to be nor should it be considered as professional advice. You should not act on the basis of anything contained in this article without first obtaining specific professional advice. Also to the extent permitted by law, Bankwest, a division of Commonwealth Bank of Australia ABN 48 123 123 124 AFSL/Australian credit licence 234945, its related bodies corporate, employees and contractors accept no liability or responsibility to any persons for any loss which may be incurred or suffered as a result of acting on or refraining from acting as a result of anything contained in this article.