“It’s the only way to keep the Australian dream alive”
The last couple of years have been a rollercoaster of emotions for anyone trying to enter the housing market. The Government building grants gave many young couples the boost they needed to get started on their Australian dream. For those who were trying to buy rather than build, the ride was a bit bumpier.
The process of buying an established home can quite easily consume your life. Every weekend is taken up going from one home open to the other. Even if you do fall in love with a particular home, it’s snapped up well above the asking price.
It’s no surprise that Perth couples are moving away from the uncertainty and disappointment of buying established homes and looking to build instead.
Top reasons why young couples are choosing to build
Today’s younger generation are quite happy to forge their own path. They know what they want and what they don’t want. Quite often, a 70s style house with a small kitchen and even smaller bedrooms isn’t high on the priority list.
Many younger couples are ready to build their forever home and know that investing in a brand-new home now will pay big dividends in the future. So, what are the top reasons young couples are choosing to build?
You can build the home you want
Building a home that’s suited to your tastes will certainly make your life at home happier. If you love entertaining, it’s much easier and cheaper to adjust paper plans and extend your entertaining area rather than renovate an established home. Maybe you’ve always wanted a big kitchen – possibly with a scullery. For many new home builders, a generous sized kitchen and scullery now come standard!
Own a home that will save you money
If you were to buy a home that was built in the 70s, 80s or 90s you would need to spend a significant amount to get it up to the standards of today’s homes. Not just in terms of looks but also the cost-saving standards. Whether it’s draughty windows, cracks in the ceiling or poor layout, older homes end up using a lot more energy than newer homes.
When you build a new home, you’re building a smart home. A home that can stay cool in summer and warm in winter, without you raking up a huge energy bill. That goes for appliances too. New homes come complete with energy-saving appliances and smart lighting options. Building a new sustainable home now will save you in the long run.
Build a home that will suit you in the future
If extending your family is in your future, you can easily add that into your house plans. You may wish to add a children’s play area or parent’s retreat (or both). Growing families also need plenty of indoor and outdoor living space. Make sure you talk to your builder about your future. For example, you may not have the extra money now for a pool, but if you discuss it with your builder, they can design the home so that there’s space for it when you want it.
Minimise stamp duty costs
Whether you build or buy, there’s a very good chance you’ll pay stamp duty. If you don’t qualify for the first home owners grant (FHOG) then it’s a guarantee. When you build, be aware, you’ll have to pay stamp duty on the entire cost of your property.
Let’s say you buy a home for $600,000. On top of that $600,000 you’ll pay nearly $23,000 in stamp duty. However, if you build a new home, you only pay stamp duty on the land. So, if your land costs $250,000, you’ll only pay around $8000 in stamp duty.
By choosing to build instead of buying, you could instantly save nearly $15,000 in stamp duty tax.
Build an eco-friendly home
The move towards a cleaner, greener way of life is gaining more and more momentum. Everyone wants to reduce their carbon footprint, use less energy, and improve their health – not to mention save some money along the way. Building a new greener home means you’ll be helping the environment and you’ll have a home that’s much more attractive for future buyers.
Add your design touches
Choosing the right building company means that you can custom design your home to your exact specifications. Even if you’re building with a project builder, some will be happy to offer custom additions or changes. Buying an older 70s or 80s built home means you’ll have to put up with whatever layout was the fashion back then. Often the living areas and bedrooms were smaller and had a formal dining room (that’s the room that no one ever uses).
Access to the FHOG
If you are building your first home, you may be eligible for the first home owners grant. Currently, eligible home owners can access $10,000. Add that to the stamp duty savings when building and that’s a great start to your home ownership dreams.
Will the price surge for established homes stop?
That’s the big question. Property prices have surged across the country throughout 2021 and, in Perth, house prices shot up a staggering 18 per cent from the previous year.
Not only have prices soared but the dominant buyers in the market are owner-occupiers who are changing homes to upsize or downsize. This makes it even harder for first time home buyers to get a foot in the door. These homebuyers are quite willing to add another $20,000 – $30,000 on top of the asking price to secure the sale.
What’s the next step?
There are some great opportunities for young homebuyers. Whether it’s a house and land package or buying your home and land separately, choosing to build rather than buy is the best way to achieve the great Australian dream.
If you’d like to see how you can start your home ownership journey, talk to the team at Blueprint Homes. They can help you arrange finance, find the perfect block of land and will let you customise your home design to build the home you’ve always wanted.