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2021 Property Market: Buy or Build?

With the housing market continuing to grow to new heights, the team at Davis Made Building explore in this article whether you should buy or build in 2021.

Pro’s & Con’s: Buying a Home

Off the back of the COVID-19 pandemic, the Australian housing market has absolutely exploded. With the combination of low interest rates, a lack of supply due to lockdowns preventing construction, and many city-residents moving out to enjoy the quiet of suburban or rural areas, growth in prices has surged in months at what it usually does over decades. Figures offered by Knight Frank as part of their global house price index showed Australian properties increasing 8.3% in the past year alone. After the HomeBuilder stimulus was introduced by the federal government, there has been more supply on the market, but the average house price has swelled in most areas across the country. For example, in the Mornington Peninsula, the median price of a property is $980,000, up massively from the $811,000 in 2019. This has led many feeling reluctant to enter into home ownership, especially for those new to the market. As mentioned previously, there are incredibly low interest rates available on loans, alongside legislation amended to allow prospective buyers to borrow faster and for less, which might offset the negatives for many. Regardless, it is definitely a market primed for the sellers of the field.

 

Pro’s & Con’s: Building a Home

Building a home, of course, isn’t as straightforward as buying an existing property. The variations in design and preparation needed on a plot of land across the country is endless and completely dependent on the end customer. While this may sound daunting, building your own home also means you get everything you could dream of in a property, designed exactly to your liking. Unfortunately, with the HomeBuilder program mentioned above, the construction industry has been elevated to six-year highs. Many construction companies and tradespeople have been stretched thin, adding weeks to delivery times and excessive markups on their materials and services provided.
 

Buying or Building – Making the Decision Right for You

With the pro’s and con’s mentioned above, our advice from Davis Made Building is that when you are deciding on building or buying in 2021, first consider where/how you plan to live by asking questions like the size of the home, where you would like it to be located, and the slope of land. That being said, with limitations and lockdowns in the city, many savvy, budding future homeowners are scouting available, affordable blocks of land that, with a modest, yet stylish home of their dreams, will come under the average medians we are seeing across the nation. All they need is to partner with a reliable, passionate team of new home builders to make it happen.

 

If you would like to learn more about your options to build, contact us at Davis Made Building today!

 

 

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