News

Benefits of buying an established home

  • Benefits of buying an established home background image

Making the decision about whether to buy an established property or build a new home from the ground up will be one of the first choices you will make as a homebuyer.

Supply chain delays, stretched tradespeople and the collapse of several Australian builders has caused some buyers to rethink embarking on a new build.

Windrose Sales Agent Graham Bush said buying an established home made sense in Canberra’s current real estate climate as buyers considered ready-to-move-into properties a quicker, less risky venture.

Less time
Buying an established home takes less time and will result in a faster occupancy.

If your purchase is time-critical, you may not be prepared to wait a year or more while you find the right piece of land, design your new home, seek the relevant approvals and then navigate the construction process itself.

Construction timelines also have a tendency to blow out, particularly with the current supply delays for materials and labour, not to mention the impact of weather.

“It’s costing more and taking longer to build, which means it’s a lot better to buy an established house,” Graham said.

“I know of some people bought who blocks 18 months to two years ago. Perhaps they paid $350,000 for a block in Yass and did their financial plan based on costs back then.

“Now they’re being told the building costs will be about $350,000 or $400,000 on top of what they paid for the block, so they’ve gone to organise the loan only to be told they don’t have the borrowing power to secure it.

“Basically, they’re putting these blocks back on the market now because they’ve gone back to their finance people and with the interest rate increases between then and now, they can’t make it work.”

More space and flexibility
Established homes on larger landholdings may be more desirable that a smaller block in an estate.

As well as the obvious aesthetic benefits, Graham said opting for the right home on a bigger block may provide not only more space, but also financial security when it comes to resale value.

“Established homes are often on much bigger blocks and that can be appealing. For example, if the property is suited to subdivision, it might give the owners more future security,” he says.

“The other thing I am seeing considered more is multi-generational families. Everyone is getting older. Nursing home beds are hard to find and the good quality ones are very expensive.

“Putting a nice granny flat or studio in the backyard might be the right solution for your parents or extended family when the time comes, and in the long-term it may also add value to your property investment.”

Mature trees and gardens
We are hearing more and more about the importance of creating urban forests in our local communities to help combat climate change, and mature trees and established gardens have always been popular amongst buyers.

Graham said having large, shady trees rather than a barren streetscape could help seal the deal.

“I sold a property in Murrumbateman recently. The people had bought a block and they were planning to build, and the thing that influenced them to buy an established property instead was the mature trees and an orchard, which you don’t generally get in new estates,” Graham said.

“A lot of the new areas are bare and there are not many established trees.

“This couple had two little kids. They said by the time the trees on their block would grow as high, the kids would have left home – and they were right.”

Proximity to amenities
Buying a home in a well-known neighbourhood means instant access to all the amenities you need, including shopping centres, schools, public transport and recreation.

“You can’t underestimate having the convenience of good amenities on your doorstep or close by,” Graham said.

“Investing in an existing home means you won’t have to wait for these services to be up and running as you might if you purchased in a new estate.”

Request an Appraisal

All great work for good people starts with a conversation; let’s chat