Why construction could be the smart choice for first homebuyers
More South Australian first home buyers are choosing to buy an established home rather than build, according to new HomeStart figures and data from Housing Industry Australia (HIA).
HomeStart’s lending figures for 2014/15 show there has been a considerable drop-away from housing construction, with a 6 per cent fall in the number of construction loans for first homebuyers in the last 12 months.
HIA statistics released this week also predict a decline, with a dramatic 10 per cent fall in the number of building starts in South Australia forecast for the 2015/16 financial year.
What do you think is the reason behind the trend?
The move away from building homes could be driven by a range of factors, including:
- the end of the $8,500 housing construction grant in December 2013
- a lack of affordable and available land in inner suburban areas
- bad building experiences circulating ‘builder myths’
- a shift in homebuyer preferences
Why construction could be the smart choice
The figures seem surprising, since building a home offers significant advantages over buying an established home, such as:
- stamp duty savings
- First Home Buyers Grant offering up to $15,000 to those who build or purchasing newly constructed homes
- choosing the features they want in a house, rather than moving into someone else’s vision.
To gain a greater understanding of the pros and cons of building your first home, please call me on 0416 802 123.