Upgrading to a new build? Here’s what you need to know

Whether you’re lusting after a bigger garden, struggling to live without a dedicated home office space, or needing to get into a better school catchment, upgrading to a home that better suits your needs is a common next step for many home buyers. And while there might be a few existing homes on the market that appeal, the best way to find a home that ticks all your boxes is to build or buy brand new. 

Newly built homes have a lot to offer, and while being presented with so many options is thrilling, often, it’s also overwhelming. Here, we break down the key factors to consider so that you can stay focussed on the end goal – upgrading to a brand-new home you’ll love.

Why brand new is the best choice for upgraders

Dreamy kitchens and plush carpets aside, newly-built homes have plenty of built-in benefits. These include:

• Stamp duty savings – if you’re buying a block of land to build your dream home on, you’ll only pay stamp duty on the land cost. Whilst with an established home, you’ll pay duty on the house and land combined. 
  
  
• Minimal maintenance woes – not only will a newly built home come with structural guarantees but the new appliances and fittings will also be under warranty. And being brand new, your ongoing maintenance costs will be minimised for years to come.
  
  
• Lifestyle options galore – from new developments in existing neighbourhoods to bespoke new communities further afield, various lifestyle options are available to explore.

Narrowing it down

From inner-city apartments and townhomes to residential land communities, there’s a huge variety of property types and locations to choose from as an upgrader. The two main factors to think about are:

1. Home location – love the vibe of your current neighbourhood but lack love for your current home? Investigate smaller-scale developments set in the heart of existing communities (known as urban renewal projects). Projects like 88 Leveson – a boutique collection of 15 luxury townhouses in the heart of North Melbourne offer stunning homes tucked within 2km of the bustling Melbourne CBD.
   
   If you’re craving a fresh start, residential land communities like the sustainability focussed Bushmead estate provides you with a purpose-built neighbourhood with various high-quality housing options, amenities close to hand, and like-minded neighbours close by.
2. Property type – dig out your list of home upgrade must-haves, and see what property type this aligns with. If you’re looking for a low-maintenance lock up and leave, an apartment or townhouse might be the best option. Or, if you want to house a growing family and have input on the home layout and design, a house and land package could be the way to go. Delve deeper into the different property types on offer in How to Buy off the Plan.

Flex (and check) your finances

While you’ve been through the home-buying process before, buying or building new (and having an existing house to sell in the mix) is slightly different. Here’s what to consider:

• Selling your current home – have a solid understanding of how much your home is likely to sell for.
• Know your budget – find out how much you can borrow and what types of home loans are available.
• Understand deposit requirements – the amount of deposit you need differs for new builds versus established homes. Make sure you account for this.
• Prep your paperwork – have the relevant documents ready to go, including insurance, bank statements and legal paperwork.

How to prepare your finances for purchasing a new build home has more detail on the financial nuances of new builds.

Make the next move to a home you’ll love

Upgrading to a newly built home is a life-changing move – you’ll have more choices, face fewer compromises (compared to buying an existing home), and ultimately become the first owner of a home you’ll love. 

Get ready to make the next move with our Upgraders Guide to Buying your Next Home.