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Pros & Cons of Building a House vs Buying a House
Is It a Better Idea to Build a House or Buy One?
Many Australians face the crucial decision of whether to build or buy a house, a choice that will significantly impact their quality of life for years to come. With nearly three decades of experience as a Brisbane home builder, Unique Built offers expert insight to help you navigate this important decision.
This blog will explore the advantages and disadvantages of building a house versus buying one, providing you with valuable information to make an informed choice based on your unique circumstances and needs. In today’s fluctuating housing market, where prices and economic conditions are constantly changing, it’s essential to weigh both options carefully.
Despite rising interest rates, Australia’s housing market remains robust, with prices in major cities like Sydney and Melbourne continuing to climb. The local construction industry has also faced challenges in recent years, with some home-building companies closing their doors, leading to concerns that more may follow suit.
These factors should be taken into account when deciding between buying an established home or building one. The following sections will delve into the pros and cons of each option, giving you a comprehensive view to help guide your decision-making process.
What Are the Advantages of Buying a House?
An Existing Home Meets Your Expectations
When buying an existing home, you have the advantage of thoroughly inspecting the property to assess its overall condition. This hands-on approach allows you to identify potential issues such as maintenance problems, pest infestations, or other imperfections that could affect your investment.
You can request the seller to address these concerns or make the sale contingent on resolving them, which provides security for the buyer.
However, if purchasing a property at auction, keep in mind that the sale is final, so it's crucial to conduct a detailed inspection beforehand to avoid unexpected surprises and make an informed decision.
Buying a House Allows You to Move in Faster
As an experienced builder of Brisbane custom homes since 1996, we understand that buying an existing home is typically faster than building a new one. Depending on your settlement preferences, you could move into your new home within a month of signing the contract, allowing you to enjoy your living space sooner.
In contrast, building a house in Australia generally takes longer—anywhere from six months to a year, depending on the complexity of the project.
Factors such as the design and size of the house, approval processes, site feasibility, and climate conditions can all impact the timeline, especially for more intricate builds like those on sloping blocks.
Easier to Find an Existing Home in a Desirable Location Than It is to Find Vacant Land
For those seeking a home in a prime location, particularly near the city centre, it can be challenging to find vacant land. Available lots tend to be more expensive due to their proximity to the central business district (CBD).
However, if living in such a central area is a priority, the investment may be well worth it.
For clients interested in building close to the CBD, a knockdown rebuild could be an excellent option. This involves purchasing an existing home, demolishing it, and then constructing a new one.
Alternatively, finding vacant land in nearby suburbs may provide a more affordable option while still offering convenient access to urban amenities such as public transport, schools, shopping centres, and healthcare facilities.
What Are the Disadvantages of Buying a House?
Functionally Obsolete
While an existing home may have appealing curb appeal, the interior may present unexpected challenges. Buyers who thoroughly inspect the property could discover various issues commonly found in older homes, including:
Although many older homes have solid structural integrity, homeowners may need to invest in renovations to enhance their functionality and comfort. Your builder might suggest changes like knocking down walls or updating kitchens and bathrooms.
Clients can choose to have these renovations done before moving in, but this process can be time-consuming and costly. Alternatively, you could move in and gradually tackle the upgrades over time.
Keep in mind, living in a home while renovations are underway can be inconvenient. In some cases, homeowners may need to temporarily relocate while work is being done, particularly if major updates like kitchen or bathroom renovations are involved.
These renovations may extend your project timeline by several weeks or even months, so it’s essential to plan accordingly to minimize disruptions.
Higher Government Fees
When purchasing an established home, buyers are required to pay stamp duty, a property tax charged by Australian states and territories on property transactions. This additional cost can significantly increase your total expenses.
However, stamp duty may be lower when purchasing vacant land, so it’s worth discussing this fee with your realtor before making a final decision.
What Are the Advantages of Building a House?
A Custom Build to Meet Your Specific Needs
There’s a special satisfaction in moving into a brand-new home tailored to your unique needs and preferences. Unlike purchasing an existing property, building your dream home ensures that every detail is crafted according to your vision, allowing you to create a living space that is entirely your own.
Access to Grants and Stamp Duty Reductions
For many Australians, building a new home offers access to the First Home Owner Grant (FHOG), which provides grants ranging from $10,000 to $30,000.
To qualify, applicants must demonstrate that the home is their first property purchase and meet other specific eligibility criteria set by their state or territory.
While the FHOG rules vary across different regions, it’s important to note that the Australian Capital Territory (ACT) does not participate in the program. Instead, ACT offers stamp duty reductions to homebuyers.
Another advantage of building a home is that stamp duty is only applied to the cost of the vacant land, rather than the value of the completed property.
Since stamp duty rates can vary by state, it’s advisable to consult a tax professional to understand the specifics before purchasing land for your new build.
Building an Energy-Efficient Home
Smart homeowners recognize the benefits of building an energy-efficient home, which not only helps them save on utility costs but also contributes positively to the environment.
Creating a home with energy-saving features ensures long-term comfort and peace of mind.
Some key energy-efficient elements include:
Newly constructed homes meet modern building codes and incorporate cutting-edge technologies, which means fewer major repairs in the early years. Homeowners can enjoy a worry-free living experience without dealing with issues like leaky roofs, plumbing problems, or HVAC system failures.
Disadvantages of Building a House
Uncertainty in the Construction Industry
Many Australians are cautious about building a new home due to concerns over construction companies shutting down mid-project. According to the Australian Securities and Investments Commission, 2,300 construction companies went into external administration, representing 27.7% of all businesses, marking a 75% increase from the previous year.
This trend reflects the financial strain faced by many construction firms, driven by factors such as high interest rates, rising material costs, and labor shortages.
The surge in companies facing financial hardship means many are unable to fulfill fixed-price contracts, especially as the industry continues to recover from the effects of the 2020 COVID-19 pandemic.
Rising Costs and Budget Overruns
Building or buying a new home can result in unexpected expenses. Factors like material shortages, labor costs, and weather-related delays may push you to spend more than planned.
Price increases for clients with fixed-price contracts have become more common in recent years. Supply chain disruptions, material shortages, and higher equipment costs are often the culprits behind these budget overruns.
As trusted home builders in Brisbane for nearly 30 years, we recommend thoroughly reviewing contracts and seeking legal advice before agreeing to price increases in a fixed-price contract.
For those purchasing a new home, it's important to clarify with the seller what is included in the contract to avoid hidden costs. Many buyers discover after signing that standard fixtures and fittings were excluded, leading to additional expenses.
If you're building a new home, it's equally crucial to carefully scrutinize your contract to understand any potential exclusions and additional costs to avoid unexpected financial strain.
Whether buying or building, careful planning and due diligence are essential to staying within your budget.
Substandard Construction Work
Building a new home requires careful selection of skilled contractors with proven expertise and strong track records.
New home builds typically involve staged payments, with the final balance due upon project completion. It’s crucial to conduct a pre-handover inspection before making the final payment to ensure any issues are addressed before you receive the keys to your new home.
If major construction problems arise, it can lead to stress and complications. Should you encounter significant issues and fail to reach a resolution with your contractor, you may need to escalate the matter to your state’s consumer affairs body or consult with a lawyer.
Interestingly, some industry experts note that certain new homes may not be as durable or resilient as older properties. However, this is a subjective observation—your new build's quality depends on your contractor and the materials used.
We recommend seeking feedback from friends or family who have recently built or purchased a new home to learn about any challenges they faced. Their advice can help you avoid common pitfalls and frustrations.
Time Constraints on Construction Loans
It’s important to remember that construction loans come with time constraints, particularly during the early stages of the build.
Many lenders require homeowners to repay their loans within six to 24 months, depending on the scope of the project. Some may also require construction to begin shortly after purchasing vacant land.
While it’s possible to discuss potential loan concerns with your lender and builder before starting the project, it’s essential to be aware of the time limitations that may apply to construction loans.
What Are the Costs of Buying a New House?
If you're considering purchasing or building a home, you may be curious about the costs involved. According to the Australian Bureau of Statistics, the average cost of a home in Australia is approximately $960,000, while the price of a typical three- to four-bedroom unit ranges from $1,400 to $4,000 per square metre.
Location plays a key role in determining home prices in 2025. For example, the median property price in Sydney, NSW, is around $1,200,000, which is higher than properties in Perth, WA, where the median price for a house is $1,075,000, and for a unit, it's $500,000.
When purchasing a home, it's important to discuss potential hidden costs with your builder, which may include:
Additionally, ongoing expenses such as repairs, council rates, and insurance can add to the financial burden.
How Much Does It Cost to Build a New House?
For those who choose to build a home, most of the costs will be associated with purchasing or leasing land, as well as material expenses.
In 2025, the average cost to build a home in Australia ranges from $611,298 to $1,000,056, or $620 to $3,900 per square metre. Keep in mind that these costs are expected to rise due to increasing real estate prices. Additionally, construction expenses may rise further because of labour costs, especially with workforce shortages.
Several factors that influence the overall cost of building a house include:
The Final Word
Choosing between buying or building a home can feel overwhelming, but with thorough preparation and research, homeowners can make a well-informed, long-term decision.
As trusted home builders in Brisbane since 1996, we advise weighing the advantages and disadvantages of both options to gain a clearer perspective. Consulting with family, friends, contractors, and legal advisors can help you find the solution that best aligns with your preferences and circumstances.
If you’re interested in building, renovating, or considering a knockdown rebuild in Brisbane or surrounding areas, contact us today. Our dedicated team will conduct a site inspection and provide a detailed estimate that fits your needs and budget.
Many Australians face the crucial decision of whether to build or buy a house, a choice that will significantly impact their quality of life for years to come. With nearly three decades of experience as a Brisbane home builder, Unique Built offers expert insight to help you navigate this important decision.
This blog will explore the advantages and disadvantages of building a house versus buying one, providing you with valuable information to make an informed choice based on your unique circumstances and needs. In today’s fluctuating housing market, where prices and economic conditions are constantly changing, it’s essential to weigh both options carefully.
Despite rising interest rates, Australia’s housing market remains robust, with prices in major cities like Sydney and Melbourne continuing to climb. The local construction industry has also faced challenges in recent years, with some home-building companies closing their doors, leading to concerns that more may follow suit.
These factors should be taken into account when deciding between buying an established home or building one. The following sections will delve into the pros and cons of each option, giving you a comprehensive view to help guide your decision-making process.
What Are the Advantages of Buying a House?
An Existing Home Meets Your Expectations
When buying an existing home, you have the advantage of thoroughly inspecting the property to assess its overall condition. This hands-on approach allows you to identify potential issues such as maintenance problems, pest infestations, or other imperfections that could affect your investment.
You can request the seller to address these concerns or make the sale contingent on resolving them, which provides security for the buyer.
However, if purchasing a property at auction, keep in mind that the sale is final, so it's crucial to conduct a detailed inspection beforehand to avoid unexpected surprises and make an informed decision.
Buying a House Allows You to Move in Faster
As an experienced builder of Brisbane custom homes since 1996, we understand that buying an existing home is typically faster than building a new one. Depending on your settlement preferences, you could move into your new home within a month of signing the contract, allowing you to enjoy your living space sooner.
In contrast, building a house in Australia generally takes longer—anywhere from six months to a year, depending on the complexity of the project.
Factors such as the design and size of the house, approval processes, site feasibility, and climate conditions can all impact the timeline, especially for more intricate builds like those on sloping blocks.
Easier to Find an Existing Home in a Desirable Location Than It is to Find Vacant Land
For those seeking a home in a prime location, particularly near the city centre, it can be challenging to find vacant land. Available lots tend to be more expensive due to their proximity to the central business district (CBD).
However, if living in such a central area is a priority, the investment may be well worth it.
For clients interested in building close to the CBD, a knockdown rebuild could be an excellent option. This involves purchasing an existing home, demolishing it, and then constructing a new one.
Alternatively, finding vacant land in nearby suburbs may provide a more affordable option while still offering convenient access to urban amenities such as public transport, schools, shopping centres, and healthcare facilities.
What Are the Disadvantages of Buying a House?
Functionally Obsolete
While an existing home may have appealing curb appeal, the interior may present unexpected challenges. Buyers who thoroughly inspect the property could discover various issues commonly found in older homes, including:
- Foundation problems, such as wall cracks, uneven floors, and malfunctioning doors and windows
- A deteriorating roof
- Hazardous building materials, such as lead-based paint and asbestos
- Exposure to harmful gases
- Electrical and plumbing issues
- Poor energy efficiency
- Malfunctioning appliances, including outdated furnaces and air conditioning systems
Although many older homes have solid structural integrity, homeowners may need to invest in renovations to enhance their functionality and comfort. Your builder might suggest changes like knocking down walls or updating kitchens and bathrooms.
Clients can choose to have these renovations done before moving in, but this process can be time-consuming and costly. Alternatively, you could move in and gradually tackle the upgrades over time.
Keep in mind, living in a home while renovations are underway can be inconvenient. In some cases, homeowners may need to temporarily relocate while work is being done, particularly if major updates like kitchen or bathroom renovations are involved.
These renovations may extend your project timeline by several weeks or even months, so it’s essential to plan accordingly to minimize disruptions.
Higher Government Fees
When purchasing an established home, buyers are required to pay stamp duty, a property tax charged by Australian states and territories on property transactions. This additional cost can significantly increase your total expenses.
However, stamp duty may be lower when purchasing vacant land, so it’s worth discussing this fee with your realtor before making a final decision.
What Are the Advantages of Building a House?
A Custom Build to Meet Your Specific Needs
There’s a special satisfaction in moving into a brand-new home tailored to your unique needs and preferences. Unlike purchasing an existing property, building your dream home ensures that every detail is crafted according to your vision, allowing you to create a living space that is entirely your own.
Access to Grants and Stamp Duty Reductions
For many Australians, building a new home offers access to the First Home Owner Grant (FHOG), which provides grants ranging from $10,000 to $30,000.
To qualify, applicants must demonstrate that the home is their first property purchase and meet other specific eligibility criteria set by their state or territory.
While the FHOG rules vary across different regions, it’s important to note that the Australian Capital Territory (ACT) does not participate in the program. Instead, ACT offers stamp duty reductions to homebuyers.
Another advantage of building a home is that stamp duty is only applied to the cost of the vacant land, rather than the value of the completed property.
Since stamp duty rates can vary by state, it’s advisable to consult a tax professional to understand the specifics before purchasing land for your new build.
Building an Energy-Efficient Home
Smart homeowners recognize the benefits of building an energy-efficient home, which not only helps them save on utility costs but also contributes positively to the environment.
Creating a home with energy-saving features ensures long-term comfort and peace of mind.
Some key energy-efficient elements include:
- Advanced framing techniques
- Cool roofing
- Passive solar design
- Earth-sheltered or log homes
- Sealed ductwork
- Ceiling fans
- Insulated doors and windows
- Tankless water heaters
- LED lighting
Newly constructed homes meet modern building codes and incorporate cutting-edge technologies, which means fewer major repairs in the early years. Homeowners can enjoy a worry-free living experience without dealing with issues like leaky roofs, plumbing problems, or HVAC system failures.
Disadvantages of Building a House
Uncertainty in the Construction Industry
Many Australians are cautious about building a new home due to concerns over construction companies shutting down mid-project. According to the Australian Securities and Investments Commission, 2,300 construction companies went into external administration, representing 27.7% of all businesses, marking a 75% increase from the previous year.
This trend reflects the financial strain faced by many construction firms, driven by factors such as high interest rates, rising material costs, and labor shortages.
The surge in companies facing financial hardship means many are unable to fulfill fixed-price contracts, especially as the industry continues to recover from the effects of the 2020 COVID-19 pandemic.
Rising Costs and Budget Overruns
Building or buying a new home can result in unexpected expenses. Factors like material shortages, labor costs, and weather-related delays may push you to spend more than planned.
Price increases for clients with fixed-price contracts have become more common in recent years. Supply chain disruptions, material shortages, and higher equipment costs are often the culprits behind these budget overruns.
As trusted home builders in Brisbane for nearly 30 years, we recommend thoroughly reviewing contracts and seeking legal advice before agreeing to price increases in a fixed-price contract.
For those purchasing a new home, it's important to clarify with the seller what is included in the contract to avoid hidden costs. Many buyers discover after signing that standard fixtures and fittings were excluded, leading to additional expenses.
If you're building a new home, it's equally crucial to carefully scrutinize your contract to understand any potential exclusions and additional costs to avoid unexpected financial strain.
Whether buying or building, careful planning and due diligence are essential to staying within your budget.
Substandard Construction Work
Building a new home requires careful selection of skilled contractors with proven expertise and strong track records.
New home builds typically involve staged payments, with the final balance due upon project completion. It’s crucial to conduct a pre-handover inspection before making the final payment to ensure any issues are addressed before you receive the keys to your new home.
If major construction problems arise, it can lead to stress and complications. Should you encounter significant issues and fail to reach a resolution with your contractor, you may need to escalate the matter to your state’s consumer affairs body or consult with a lawyer.
Interestingly, some industry experts note that certain new homes may not be as durable or resilient as older properties. However, this is a subjective observation—your new build's quality depends on your contractor and the materials used.
We recommend seeking feedback from friends or family who have recently built or purchased a new home to learn about any challenges they faced. Their advice can help you avoid common pitfalls and frustrations.
Time Constraints on Construction Loans
It’s important to remember that construction loans come with time constraints, particularly during the early stages of the build.
Many lenders require homeowners to repay their loans within six to 24 months, depending on the scope of the project. Some may also require construction to begin shortly after purchasing vacant land.
While it’s possible to discuss potential loan concerns with your lender and builder before starting the project, it’s essential to be aware of the time limitations that may apply to construction loans.
What Are the Costs of Buying a New House?
If you're considering purchasing or building a home, you may be curious about the costs involved. According to the Australian Bureau of Statistics, the average cost of a home in Australia is approximately $960,000, while the price of a typical three- to four-bedroom unit ranges from $1,400 to $4,000 per square metre.
Location plays a key role in determining home prices in 2025. For example, the median property price in Sydney, NSW, is around $1,200,000, which is higher than properties in Perth, WA, where the median price for a house is $1,075,000, and for a unit, it's $500,000.
When purchasing a home, it's important to discuss potential hidden costs with your builder, which may include:
- Stamp duty
- Property valuation fees ($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 the loan amount)
- Moving costs ($80–$300 per hour)
Additionally, ongoing expenses such as repairs, council rates, and insurance can add to the financial burden.
How Much Does It Cost to Build a New House?
For those who choose to build a home, most of the costs will be associated with purchasing or leasing land, as well as material expenses.
In 2025, the average cost to build a home in Australia ranges from $611,298 to $1,000,056, or $620 to $3,900 per square metre. Keep in mind that these costs are expected to rise due to increasing real estate prices. Additionally, construction expenses may rise further because of labour costs, especially with workforce shortages.
Several factors that influence the overall cost of building a house include:
- House size: Larger homes require more materials and labour.
- Quality of finishes: Higher-quality finishes demand premium materials.
- Additional features: Adding elements like swimming pools, patios, fencing, and landscaping can significantly increase the total cost.
The Final Word
Choosing between buying or building a home can feel overwhelming, but with thorough preparation and research, homeowners can make a well-informed, long-term decision.
As trusted home builders in Brisbane since 1996, we advise weighing the advantages and disadvantages of both options to gain a clearer perspective. Consulting with family, friends, contractors, and legal advisors can help you find the solution that best aligns with your preferences and circumstances.
If you’re interested in building, renovating, or considering a knockdown rebuild in Brisbane or surrounding areas, contact us today. Our dedicated team will conduct a site inspection and provide a detailed estimate that fits your needs and budget.