Perth is a beautiful city to call home, with its stunning beaches, lively entertainment scene, and superb quality of life.
If you're planning to reside in this sunny part of Australia, one of the most critical decisions you'll have to make is whether to build or buy a home.
Both options have their advantages and disadvantages, and one of the most significant factors to consider is the cost.
In this blog post, we'll explore the costs of building vs. buying a house in Perth, Western Australia, and provide some insights to help you make an informed decision.
Cost of Buying a House in Perth
The cost of buying a house in Perth varies depending on the location, size, age, and condition of the property.
According to the latest data from Core Logic, the median house price in Perth as of May 2023 is $599,240.
However, if you're looking to buy in the popular coastal suburbs or inner city locations, you can expect to pay significantly more.
Also keep in mind that buying a house involves additional costs such as stamp duty, legal and conveyancing fees, inspections, and settlement costs.
These costs can add up to tens of thousands of dollars, so it's essential to factor them in when weighing up the affordability of buying vs. building.
Cost of Building a House in Perth
Building a house in Perth involves several costs, such as buying land, designing and planning, obtaining building permits, and construction costs.
According to research from the Housing Industry Association (HIA), the average cost of building a new home in Perth in 2021 was around $1,320 per square metre. In 2023 this would be more likely to be around $1500-1800 per square metre.
Therefore, the cost of building a new home may vary, mostly depending on factors like the size of the house, number of levels, quality of fitout and the location.
However, there are other major factors that have an impact on the building costs, such as the materials used and the level of inclusions you choose. Another factor is timing - it's difficult to be sure whether it may be worth waiting until 2024 to build a new home.
In general, building a home often costs less than buying an existing home if you compare the level of finishes and inclusions. However this fluctuates depending on the established property market.
There can also be major price differences between building a single storey home vs how much it costs to building a double storey home.
Building a new home also has the advantage of greater savings in the long run, as you can not only design and build a house that's tailored to your needs and preferences but a new home is also generally more energy efficient and requires less maintenance.
When deciding between building vs. buying, finances aren't the only thing to consider. Building a home can take anywhere from 12 months to 2 years, depending on the complexity of the design, the weather conditions, and other factors.
If you need to move into your new home quickly, buying an existing property may be the better option.
On the other hand, buying an existing home means that you're purchasing a property with a history, which may come with its own set of perks and challenges.
What about costs in the long run?
It's also essential to consider the long-term costs of building vs. buying. For instance, a new home typically comes with a warranty and fewer maintenance costs, so you may save money in the long run.
On the other hand, an existing home may require maintenance and repair work to keep it in good condition.
When you build new, you can also choose energy-efficient materials and appliances, which can result in lower utility bills over time.
Let’s Sum It All Up
Whether you decide to build or buy a property in Perth, it's essential to weigh the costs and benefits of each option before making a decision.
Buying a home means you can pretty much move in immediately, but building a home means you can customise it to your precise needs and preferences as well as chose more affordable materials if your budget is limited.
Additionally, building a home can bring satisfaction and a sense of achievement that you may not experience when buying an existing property.
Overall, whichever option you choose, it's sure to be an exciting step towards creating a home in one of Western Australia's most stunning cities