Should I build or buy in 2024?
It’s a question that many people ask when thinking about their dream home: Should I build or buy one?
Having been through the process of both building and renovating over the past few years, I can tell you that it’s not an easy decision. Each time I faced this choice, I learned something new, and if I had known what I know now, I might have made different decisions along the way.
To help you with this decision, let's break it down into three key factors: Affordability, Project Management, and Design. These are the areas that influenced my own decisions, and as market conditions continue to change in 2024, they’re worth considering in detail.
1. Affordability
The first and most important factor is affordability. Whether you’re building or buying, understanding your budget, future earning potential, and having a fallback plan if things don’t go as expected is crucial. This is where working with an expert can help remove the guesswork and ensure you’re making a choice that won’t put you in financial jeopardy.
Building a House:
Building a home can sometimes provide the opportunity to save during the construction phase. Typically, you’ll pay a deposit and then make interest-only payments during the build. Once the build is complete and settled, your full repayments will begin.
One potential advantage of building is escalation—signing a contract in 2024 at a set price, and by the time your home is completed in 2025, it may have increased in value without any extra effort on your part. However, building also comes with risks like delays, unexpected variations, or cost overruns, so having a contingency plan is essential.
Buying a House:
Buying an existing home provides more certainty around the contract price. Once your offer is accepted, you know exactly what you’ll pay at settlement. The downside is that the home’s value may have already increased significantly, meaning the potential for profit might be less compared to a newly built home.
2. Project Management
Another significant difference between building and buying is the level of project management involved.
Building a House:
Building a home requires ongoing involvement throughout the construction process. You’ll need to make decisions, solve problems, and conduct research along the way. Even with the help of experts, there’s still a time commitment involved. Having someone to guide you through these challenges can ease the load, but it’s important to understand what you’re taking on.
Buying a House:
Buying an existing home is straightforward by comparison. Once you reach settlement, the home is yours—no need to manage a building process or deal with construction headaches.
3. Design Input
Lastly, think about how much design control matters to you. Do you want to create something uniquely yours, or are you happy adapting an existing space?
Building a House:
Building allows you to customise your home from the ground up. You can tailor every detail to suit your lifestyle, needs, and aesthetic preferences. Seeing your vision come to life can be incredibly rewarding, but it does require a lot of decision-making along the way.
Buying a House:
When buying an existing property, you have less influence over the design, but there are still ways to make it feel like your own—whether it’s through renovations, painting, or landscaping. The changes may be smaller, but they’re often more manageable and can still make a big impact.
So, Should you Build or Buy?
At the end of the day, building a house isn’t for everyone. It requires careful consideration of affordability, time, involvement in project management, and the desire for a personalised design. If you value certainty and ease, buying may be the better choice. But if you crave control over the design and have the time to commit to the process, building might be the way to go.
No matter which path you choose, make sure you’re well-prepared to navigate the complexities of contracts, construction timelines, and costs. That’s where I come in.
If you’re leaning towards building but feel overwhelmed by the contract process, a Building Contract Health Check can make all the difference. In just 60 minutes, we’ll unpack your contract, spot any potential red flags, and set you up for success. With expert support, you can feel confident that your contract is clear, fair, and aligned with your goals—saving you from costly mistakes down the road.
Ready to make sure your building contract is rock-solid? Book a Building Contract Health Check and let’s take the stress out of your dream home build.
Happy building,
Annelyse.
Owner - Build Together
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Written by Annelyse, Building Contract Enthusiast, Project Manager, and founder of Build Together Project Management.
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