As a first-time homebuyer, deciding on the type of property to purchase can be a challenging decision. It is important to explore the pros and cons of the different types of home ownership that you can choose from to figure out what suits your budget, lifestyle, and future plans. 

Buying a Land to Build your First Home

The pros

Customization

When you buy land to build a home, you have the opportunity to customise the design and features of your home to meet your specific needs and preferences.

Location

Buying land to build a home gives you the opportunity to choose a location that is ideal for you and your family.

Potential for investment

If you choose the right location and build a well-designed and well-constructed home, your property could potentially appreciate value over time, providing you with a solid investment.

The cons

Cost

Buying land to build a home is often more expensive than purchasing an already-built home or an apartment. You’ll need to factor in the cost of the land, construction, and any necessary permits.

Time

Building a home can be a long and time-consuming process, and there may be unexpected delays or challenges along the way.

Responsibility

When you buy land to build a home, you’re responsible for overseeing the construction process, ensuring that all building codes are met, and ensuring that the finished product meets your expectations.

Buying an Apartment as your First Home

THE PROS

Affordability

Compared to buying land to build a home, or an already built home, buying an apartment is often more affordable, making it a great option for first-time home buyers.

Maintenance

When you buy an apartment, the cost of maintenance and repairs is typically covered by the building’s strata fees, which means that you won’t need to worry about these costs.

Convenience

Many apartments are located in convenient, central locations, which makes them a great option for those who want easy access to shops, restaurants, and public transportation.

THE CONS

Space

Compared to a house, apartments typically offer less space, which can be a drawback for those who want more room to spread out.

Privacy

If you live in an apartment building, you may need to deal with neighbors who are close by and noise from other units.

Limited customisation

When you buy an apartment, you’re typically limited in terms of what you can customize, which means that you may not be able to personalize your living space to meet your specific needs and preferences.

Buying an Already Built Home

THE PROS

Move-in ready

When you buy an already-built home, you can move in and start enjoying your new space right away. There’s no need to wait for construction to be completed.

Established location

Established homes are typically located in established neighborhoods, with a good sales history, which means that you can get a good sense of the area and what it has to offer. You can easily research this data under the “sold” tab on realestate.com.

Potential for investment

If you choose the right location and purchase a well-built home, your property could potentially appreciate in value over time, providing you with a solid investment.

THE CONS

Cost

Compared to buying an apartment, buying an already-built home is often more expensive, making it a less affordable option for first-time home buyers.

Limited customisation

When you buy an already-built home, you may need to make some changes and renovations to make it your own, but you may be limited in terms of what you can do.

Maintenance

Maintaining a home is all on you. The drawback of buying an already-built home, especially if it’s not a new one, is that there is a huge chance there are some parts of the home that need repairing. The cost of maintaining a home is no joke. 

Buying your First Home Off-the-Plan

THE PROS

Affordability

Buying off-the-plan often offers more affordable pricing compared to buying an already-built property, making it a great option for first-time home buyers or those who are looking for a more budget-friendly option.

Customisation

When you buy off-the-plan, you may have more opportunities to customize the design and features of your property to meet your specific needs and preferences.

Potential for investment

If you buy off-the-plan and the property appreciates in value over time, you may be able to sell it for a profit.

THE CONS

Uncertainty

When you buy off-the-plan, you’re making a commitment to purchase a property that hasn’t been built yet. Hence, there’s a certain level of uncertainty involved. You may not be able to see the final product until it’s completed. Is this a drawback for you?

Time

Buying off-the-plan often means that you’ll need to wait for the property to be built. This process can take several months or even years.

Risk

Buying off-the-plan involves a certain level of risk. The final product may not meet your expectations, or there may be changes or delays during the building process.

Final thoughts

Ultimately, the choice for your new home boils down to the money you have. Whether you can wait a long time to move in matters, too. And so do your future plans with your residence. If you are having a hard time deciding, consult real estate agents. They can give you tried and tested pieces of advice.  

When it comes to your home-buying budget, it’s best to talk with home loan experts. This way, you get the lowest interest rate and the best loan features. Happy home hunting!