pogsy

Just interested in peoples view on is it cheaper to buy a house or build a new one assuming you can find an ideal plot on which to build. Assuming time scales are not a factor do you get more for your money when you build new.

Timber Floor Au

1st thing... its a BLOCK not a PLOT

Plots are for Burials.

Dependant on where you wanna build, Oz is a big place.

In Brizzy its getting increasingly difficult to melt the 3 main factors:

Price
Availability
Location

For example a 900 sqm block in Calamvale could set you back 500,00 whereas bayside could be several million, with a glimpse of the liquid stuff

5 mins down the rd, and 1 acre block could cost you $150k

Ozzy

pogsy

Thanks for the tip on plots and blocks, could,uv ended up buying ba ten foot square burial site. I hear what you are saying on location but if you had a house up for sale and a block next to it to build on, would it be cheaper to build new in that situation.

Timber Floor Au

You can only do that if you have sub-division approval

Pretty sure you can buy derelict house on the block you want, and do a rebuild

You would need to speak with the local council of the area you wish to build, even then a definitive answer isnt a guarantee

Oz Councillors have difficulties in committed answers

worzel

Don't forget the time factor. See a house you like and you can be living there within 4 weeks. We are thinking about building too but in Perth you can wait 2 years, apparently, due to material / labour shortages.

bridiej

I remember from that Place Down Under they ran out of bricks!

NIGENABBY

Something else to consider when you are looking at 'value for money' in choosing to buy or build is the amount of stamp duty payable.

This varies wildly from state to state. If you buy land and then build a house you only pay stamp duty on the land, not the total value of the property.

In Victoria
If you buy land for $200K, and the building later makes the property worth $500K you will pay $7,660.

If you buy a $500K property you will pay the government $25,660!!

quick reference
http://www.sro.vic.gov.au/sro/sroweb...set=iso-8859-1

worzel

I remember! They built a lot of it in breeze blocks and Mandy Skeggs went clucking mad about rendering not looking nice.

steandleigh

Our block cost $125,000 (bought a year ago)
Our house is costing $225,000
Our pool costs $21,000
Landscaping / fencing etc another $5000
Total roughly $376,000

Brand new houses on the same estate are being sold for $425,000

Could be a small investment, could be equalled out with the rent you pay over the year+ of planning and building. Horses for courses.