To Buy or Build?
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There are pros and cons for buying an established home or building a new one. In considering which is for you, keep in mind that both have associated costs on top of the upfront cost of the house and land.
Most of the costs of buying an established home are associated with borrowing the money and real estate fees. They include your agent’s fees and settlement agent’s costs.
With building, things like site preparation and landscaping costs may be charged on top the house and land, and can add significantly to the final outlay.
Carefully research all the costs before deciding to build or buy.
Shop around for a loan. The number of loan products from banks and other lenders can be daunting so consider using a mortgage broker to help you through the maze and pick the very best loan for your purpose. Generally, using a broker should come at no cost to the borrower. The broker's fees are paid by the lender.
Remember that as interest rates rise, so too do your repayments unless you choose a fixed loan option.
The Department of Consumer Protection has an excellent Homebuyers Survival Guide that gives you advice on a full range of options for buying a house, land and building. You can see it at www.commerce.com.au and follow the Consumer Protection link.