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Choosing between a new build and an established home is a pivotal step in your buying journey. The right fit depends on your lifestyle, location priorities, budget, appetite for maintenance and how quickly you need to move.

If you need a particular school catchment, a short commute or a leafy, well-established street, existing homes may offer better choice. If you prefer newer estates with planned parks and community facilities, a new build could be ideal. New properties can offer predictable running costs but may carry a premium and construction lead times, raising the question is it cheaper to build or buy a house given current materials and labour.

Learn more about the advantages and disadvantages of whether it's better to buy or build, you can also reach out to your local agent to chat through your options.

New properties

New homes may appeal to buyers who value contemporary design, lower immediate upkeep and the chance to customise finishes. This often includes first home buyers using incentives, downsizers seeking low-maintenance living and investors attracted to depreciation benefits.

Advantages:

  • The property is going to be new and free of any defects or areas that need to be repaired
  • Depending on your state and if you’re willing to live in the property for a short period after you purchase it, there are generous government concessions available for new-home buyers
  • Newer buildings may be in areas around that are newly constructed and feature brand new parks and facilities

Disadvantages:

  • If you purchase the property before it’s completed you may not know exactly what it will look like
  • New properties can be more expensive than established or older ones
  • New properties can be located in suburbs or locations that are also newly established and are further travel times

Generally, there are two ways to purchase a new property, according to Loan Market experts - buying off the plan or buying a house and land package.

Off the plan

Buying off the plan is usually purchasing a unit or townhouse that has yet to be completed. Or in some cases, a single contract purchase, where you’re not making progress payments on the construction of the loan.

When purchasing off-the-plan you have to put a 5-10 per cent deposit and then pay the remainder on completion of construction. In most cases, buyers will organise the loan they need for the property in the months before they anticipate construction to be completed on the property.

Things you need to know about buying off the plan:

  • You will have to pay stamp duty on the full contract price when you agree on the purchase price
  • Most builders have to pay stamp duty on the land they are building on so they may factor that into the total price of the property, meaning you may be paying stamp duty twice
  • Depending on the state you live in and the property price, you may be eligible for government grants and concessions. See our stamp duty calculator for the latest offers in your state
  • The contract or agreed price you pay is for the final completed product, unlike buying off the plan where you’re paying in instalments to complete the property to your specifications
  • When you buy a property off the plan you may have limited say in the construction of the property and its features - rooms, layouts, colours etc.
House and land package

When you buy a house and land package you are buying the land from the developer and you sign a construction contract with a builder to complete your home.

When you buy the land, you have to pay for it upfront and will have to pay stamp duty on the land. However this will be the only time you will need to pay stamp duty. During construction of your property you will have to make progress payments to your builder of choice and these can be financed through several ways.

Things you need to know about buying a house and land package:

  • House and land packages give you more say in the final product - builders will construct your home based on your ideal property layout and features
  • Stamp duty is only applicable on the land
  • You can often save lots of money by ‘acting as the developer’ and paying to complete the construction of the property rather than agreeing on a price for a delivered final product

Existing property

Established homes suit those who prioritise character, mature neighbourhoods, larger land or proximity to amenity-rich suburbs where new stock is limited. When you are comparing build or buy, consider whether property is the best investment for your goals and timeframe.

Advantages:

  • Existing properties will be in established suburbs and likely close to services, transportation and central business areas
  • Older properties may be cheaper than newer properties
  • Existing properties can be renovated into your dream property

Disadvantages:

  • Established properties may require repairs or upgrades, depending on the age of the property
  • There are no stamp duty exemptions for buying existing properties

There’s three basic decisions to make when you’re picking the type of existing property to buy - will it be a house or unit, and where to buy.

Buying a house

Freestanding houses appeal to buyers who want more space, privacy and control over their property. They often come with larger land components, which can support long‑term capital growth, can accommodate any type of buyer such as families or singles, and provide scope for renovations, extensions, or redevelopment (subject to approval).

Things you need to know about buying a house:

  • You’re taking on full responsibility for the land and structure, so thorough due diligence is essential to avoid unexpected repair bills
  • Insurance needs are broader than for units; you’ll typically require building and contents cover tailored to the property’s construction and location risks
  • Renovations can significantly increase value, but costs can escalate quickly; it’s wise to obtain indicative quotes and understand approval processes before committing
Buying a unit

Units (or apartments) can be an appealing way to enter a suburb that might otherwise be out of reach, or to simplify life with low‑maintenance living. They are often located close to transport, cafés, shops and employment hubs, which can make them attractive to both owner‑occupiers and tenants.

Things you need to know about buying a unit

  • Whilst typically a more affordable option, you’re buying into a shared structure, so the financial health and management of the building are critical to your long‑term costs and comfort
  • Insurance for the building is usually included in strata levies, but you’ll still need contents insurance and, in some cases, additional cover for fixtures
  • Renovations inside your unit may require approval from the body corporate, especially if they affect plumbing, structural elements or common property
  • Rental yields can be attractive in inner‑city or high‑demand areas, but resale values may be more sensitive to changes in investor sentiment or new developments nearby
Find out more

Buying a property

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