New versus existing homes for first home buyers
You have finally done it after surviving years of shared house living and renting apartments that are a little too thin. That magical deposit amount you have reached and you are ready to buy your first home.
Now, the big question is: what to purchase?
Although saving for a home can seem like the hard part, before you find your dream house and sign on the dotted line, there are still a lot of decisions to make. What kind of home you'd like is the first thing to decide.
With high house costs, there is also a lot of discussion about the benefits and drawbacks of new and existing housing. From homeowner grants to your ideal neighbourhood to your home's layout, trying to find out which is right for you can all become a little daunting.
When comparing new and existing houses, here are a few things you may want to bear in mind.
Australia has seen a boom of new houses being constructed over the last couple of years. For first home buyers, this is good news as it means there is an abundance of options when they reach the market.
The availability of the First Home Owner Grant is one of the significant attractions of a new home (New Homes). Under this, NSW's first home buyers are entitled for up to $10,000 against a new home's purchase price below $750000 (this varies from state to state).
Besides this, following completion, new homes will come with a warranty. Depending on the state you're buying in, this time can vary. In NSW, it is the responsibility of the contractor to insure that for six years after completion, and two years for all other defects, the job is free of major defects.
This will add to your peace of mind, knowing that you will not be out of pocket for the fix in the event of any significant defects.
New houses, stylistically, have their advantages, too. Being freshly constructed, with the most innovative aesthetics and appliances in mind, you can be sure that your home will be planned.
One thing to take into account, which is not always a negative thing, is that there are always new buildings in new areas. This may mean that if you work in the area, you are farther away from the CBD, which can affect your commuting time.
Before you purchase them, existing homes are those that have been lived in or sold.
Purchasing an existing home does not fully preclude you from NSW government assistance, provided it is your first home. If your house is up to $650,000 in value, under the First Home Buyer Assistance Program, you may be eligible for a full transfer obligation exemption. Similarly, you will also be liable for a concession if your home is priced at between $650,000 and $800,000.
Aesthetically, if you set your eyes on a newly renovated house, an existing home will give you a broader variety without compromising on modernity.
Older homes, which represent the time they were designed, will give you flair and character. There's something to fit everyone's taste, whether it's a Victorian cottage or a classic Aussie red brick bungalow.
When deciding where to purchase, purchasing an existing home often gives you more choices in terms of venue. It gives you the freedom to select an existing neighbourhood that fits your needs, allowing you to be within your price range as close to or as far from the city as you wish.
An older house, on the other hand, may mean older fit-outs. This could provide a perfect opportunity if you are looking for somewhere to renovate or add your personal touch. However, you will need to keep an eye out for places with recent updates if you want somewhere that is still up to date.
When purchasing an existing house, another thing to remember is to insure that you are able to conduct all necessary inspections. With age, all deteriorates and houses are no different, but taking the right measures early on will save you from getting stung in the future by any secret flaws or insect infestations.
One of the greatest and most exciting choices you can make in your life is buying your first home. The hard work will, in the end, pay off by putting in the effort to do your homework to help you become a happier homeowner.
Note this article is not financial or legal advise. Please check with your financial and legal specialist counsel before making any decisions of your own.
For further information about real estate in this area, contact No Bull Real Estate, your most reliable and friendly real estate agents in Newcastle and Lake Macquarie. Buying, selling, leasing for residential, commercial, industrial property, contact your local expert to buy, sell or lease today on 49552624 or https://www.nobullrealestate.com.au