For many Australians, buying their first home is a cherished dream and becomes a great motivator for most.

Now that you have put up the savings for a deposit the next big question is, what will you look for – a new house, an existing one, or an apartment?

Saving up the deposit can be as daunting as finding the right property choice and is something that one must seriously and intently consider.

The market is rife with properties for sale and you often get stumped on which one catches both your fancy and your budget. Let’s face it, just thinking about the amount of money that you will be letting go can end up becoming a bitter pill to swallow, especially if you have made the wrong choice.

Also, high property prices can be a stumbling block in realising your first and only dream home, which can likely often leave one with an option to choose between getting a new property or buy an existing one.

New property

Australia saw an upsurge in the construction of new homes during the last several years, which can be good news for first home buyers with a good number of options to choose from.

Not only that, buyers are encouraged to buy new homes with the First Home Owner Grant (FHOG) for those who want to purchase a new house. This grant provides first home buyers in New South Wales (NSW) with $10,000 for a new house that costs below $750,000. Limits vary by state, for instance, those living in Victoria are entitled to $20,000 or contracts signed from July 1, 2017, to June 30, 2021, this year.

New houses that were approved of the grant are covered by a warranty upon completion for a certain period and may vary as to which area the property is situated in.

For instance, NSW contractors are responsible for ensuring that their work is free from major defects for up to six years after completion and up to two years for minor defects.

Also, new houses are designed using modern architecture, aesthetics, and appliances, which makes it beneficial to buyers. 

Depending on how you see it, most new developments are located in new or developing areas that can be further away from central business districts (CBD) and can affect daily commute if you happen to study or work in a CBD.

Existing property

Also known as “used” properties that have been lived in prior to being listed in the market.

An advantage that people are not aware of is that it does not completely exclude a first home buyer from government assistance in NSW- as long as the property is your first home and one you choose to live in.

Existing houses valued at $650,000 are eligible for a full exemption on transfer duties under the First Home Buyer Assistance Scheme, while those valued up to $800,000 entitles the buyer to concession eligibility.

Aesthetically, many existing homes provide a wide variety of amenities and designs without compromising modern themes, especially those that have been recently been renovated or flipped.

On the other hand, older homes provide more flair and character reminiscent of the time it was constructed, such as a Victorian cottage or a brick bungalow.

Used homes also provide buyers with more options in terms of location, especially when looking to live in an established community or be closer to a CBD at a lower price range.

Another thing with existing homes is that you expect to allot costs for relevant inspections. Some concerns include wear and tear, and taking the right steps to avoid issues such as pest infestation or hidden defects that are brought to light and addressed right away to avoid conflicts between the seller and buyer.

Remember that buying your first home can be the most exciting chapter of your life and it is only proper to do your research and due diligence so you do not end up regretting your life-changing decision.