Properties v Construction

Properties v Construction

Established Properties vs. Land and Construction: Which is Right For You?

Deciding on the right property type for your needs is a major step when buying a home. As a mortgage broker at You First Finance, I often see clients weighing the options between established properties and land and construction packages. This choice deeply influences your lifestyle, finances and future opportunities.

Established Properties


  • Immediate Move-in: Settle in and start your new life without waiting on construction.
  • Clarity: No surprises – you see the finished property, including potential flaws.
  • Faster Title Process: Usually, ownership transfers happen swiftly after settlement.


  • Previous Ownership: Unless buying a new ‘off-the-plan’ unit, the home has had prior residents.
  • Limited Design Control: You’ll need renovations to customize the property to your taste.
  • Maintenance Issues: Older homes may need immediate or near-future repairs.
  • Ineligible for First Home Owner’s Grant (FHOG): The FHOG usually only applies to new builds.

Land and Construction


  • Brand New Home: Be the first to live in an untouched, pristine house.
  • First Home Owner’s Grant (FHOG): Potentially access significant financial help if eligible.
  • Dream Home Design: Choose layouts, finishes and features to suit your preferences perfectly.


  • Delays: Unforeseen issues can delay land titling (ownership transfer) and construction.
  • Escalating Costs: Material and labour prices can fluctuate, affecting your final budget.
  • Interest Rate Risk: If rates rise while building, your loan repayments could increase dramatically.
  • Valuation Challenges: Appraisers might value the finished property lower than you contracted to build it for, causing lending issues.
  • Smaller Land: New housing estates often have smaller land parcels than older areas.

Key Considerations

The ideal choice boils down to your priorities, financial circumstances and risk tolerance.

  • Lifestyle: If you crave instant gratification or dislike renovation hassles, an established home offers a ready-made solution.
  • Customization: Land and construction give you maximum control if you desire a personalised home.
  • Financial Health: Construction carries higher risk. Thoroughly assess your budget, stress-test it against interest rate rises and get expert valuation advice to minimize financial surprises.

You First Finance – Your Guide to the Right Property Choice

Confused about whether a cozy established home or a sparkling new build is the right fit? I’m here to help! Contact You First Finance today to discuss your goals and explore mortgage options tailored to whichever property type you choose.

Disclaimer: The information provided here is for general knowledge only and does not constitute specific financial advice.

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