Pros and cons of building your own home
The Housing Industry Association recently highlighted the latest ABS figures on new home approvals indicate that home building activity across the Hunter and Central Coast cooled slightly in 2023.
In 2023 total dwelling approvals in the Hunter fell 7.4 per cent, while on the Central Coast total dwelling approvals fell 2.9 per cent compared to the 2022 calendar year.
However, compared to all states and territories the decline of approvals is less; nationally total approvals fell 15.4 per cent, while in NSW approvals fell 17.7 per cent.
This decline in approvals could be related to the rapid rise and uncertainty around construction costs in 2023; over the past three years builders’ index recorded a staggering 12 percent inflation rate. Previous to this construction costs typically rose at an approximate rate of 5% per year.
Despite these figures, there is still a lot of interest in the region for home-building.
Craig Jennion, HIA Hunter Executive Director pointed out much of the heavy lifting for the residential sector continues to occur in the statistical areas of Central Coast, Newcastle, Lake Macquarie, Maitland and Cessnock. These top locations for approvals accounting for 89.5 per cent of total approvals.
“Regionally Newcastle was the biggest mover with total housing approvals increasing by 114 per cent. Detached dwelling approvals increased 16 per cent while multi-unit approvals increased by 159 per cent. Strong approvals in the December Quarter 2023 assisted this result,” he said.
We believe there is still some great opportunities for building your own home, and many are taking advantage of the benefits. We have been managing the Heartwood Estate development, located on the North Easterly side of Edgeworth off Brushworth Drive (behind McDonalds), since the development started in 2022; there is now just one block to go in Stage 6, with Stage 7, the final stage due to go on sale around May.
Building your own home can be an exciting and rewarding experience, however it also comes with its own set of challenges and drawbacks. Here we take a look at some of them:
Pros of building your own home:
- Customise
Possibly the biggest attraction of building your own home is the ability to customise every aspect of the design to suit your personal preferences and lifestyle. From the layout and size of the rooms to the materials and finishes used, you have complete control over how your home looks and functions.
- Cost savings
While materials have risen, building your own home can be more cost-effective than buying an existing property, especially if you are willing to do some of the work yourself. You can also shop around for the best deals on materials and labour.
- Energy efficiency
With energy costs on the rise, building your own home gives you the opportunity to incorporate energy-efficient features and technologies that can help reduce your carbon footprint and lower your utility bills. From high-efficiency windows and insulation to solar panels and LED lighting, the possibilities for energy savings are endless.
- Pride of ownership
There is a sense of pride and satisfaction that comes with building your own home from the ground up. You can take pride in knowing that you had a hand in creating a space that is uniquely yours and reflects your personality and taste.
- Payment Installations
Many developers offer the option of paying for your new build in installations rather than up-front. This can be a more attractive option than outlaying for the entire cost of your home in one go.
- First Home Owner (New Homes) Grant
The $10,000 First Home Owner Grant is available for newly built or substantially renovated homes. More details can be found here.
Cons of building your own home:
- Time and effort
Building a home is a time-consuming and labour-intensive process that requires a significant amount of time and effort. There’s designing the plans and obtaining permits, coordinating contractors and managing the construction process, building your own home can be a full-time job in itself!
- Stress and uncertainty
No matter how good and experienced your builder, there are often unexpected delays, and some experience construction issues too. It can be challenging to stay on schedule and on budget, and the pressure of making important decisions can be overwhelming.
- Legal and regulatory hurdles
There are numerous legal laws, regulations, and building codes to adhere to. Failing to comply with these requirements can result in costly fines, delays, or, in extreme cases, the demolition of your home. It’s always best to use professionals who are experienced in the regulations and understand the law.
- Financial risk
Like any financial investment, building your own home does come with financial risks. If the housing market crashes or you encounter financial difficulties during the construction process, you could end up with a half-finished or unsellable property. It’s always good to check the fine print of your insurance!
For more information on building a home and buying land, how to check a builder or tradesman license, and other relevant information, visit the NSW Government website.
If you’d like to know more about Heartwood estate, what else to consider when planning and building your own home, or would simply like a free, independent and non-obligatory quote on your property, get in touch.
With our extensive local market knowledge and expertise, we are here to give you the information so you make informative decisions about your property.
Give us a call on 02 4954 8833 or pop into our Cardiff office for a no-obligation chat. Alternatively, send us an email to: mail@apnewcastle.com.au.
Don’t forget to check out our Facebook page for handy tips on selling your property or what to look for when buying a property.