Is It Cheaper To Build Or Buy A Home?

Is It Cheaper To Build Or Buy A Home?

As you can probably imagine, this is a very difficult question to answer, as it depends on a whole raft of factors. For example, where will you be looking to live, and what size home are you considering? Although it is almost always cheaper to buy an empty lot of land rather than an established home, construction costs and other fees are added to the overall cost of building.
 
Luckily, to help us answer this question, Finder.com have released a rough guide with some interesting data. They have calculated the average price of land in major metropolitan areas of Australia, estimated total construction costs, added these together and compared them to average house prices in these areas. Their figures seem to suggest that building is in fact cheaper than buying (apart from in Perth). This is perhaps because houses are in demand for people searching in densely populated areas who do not have the time or indeed the expertise to build one of their own.
 
However, these figures are all very rough estimates based on averages. Plus, they do not have data for the Northern Territory or Tasmania. 

Things To Consider

If you are considering building your own home, it’s important that you plan ahead very carefully. Although empty plots of land can be cheap, they can also be very difficult to come across especially in popular areas. Consider the price of your materials and how big you want the property to be, and the quality of the builders you will employ. Think about the average price of houses in the specific area and work out if you could realistically afford the extra costs, time and effort it takes to build a house compared with buying an existing property.
 
Building your own house doesn’t have to be confusing and you don’t have to do it alone. At Total Package Construction, we have dedicated home builders who can help you with every step towards your dream home. Get in contact today on 0400 155 017 to find out how we can make building your own home cost-effective and worth all the effort.