Buying New house or Old house

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  c64 on 14/01/2014 - 09:35

  Everytime i go and see a sales agent they say the prices will go up for next stage. Existing blocks are selling like hot cakes.

  what else would you expect to hear from a sales agent??

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    rav_stk on 14/01/2014 - 10:07

    very true,but I don't want to rush into it. I guess that's how's they are making sales….

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  [Deactivated] on 14/01/2014 - 09:47

  +1

  My 2 cents…

  1. Always do your sums and work out the total cost (include things like, fully landscaped garden, letterbox, clothes line, blinds/curtains, floor coverings, fencing, shed, house number, stamp duty (where applicable).

  2. For a new house, it is highly suggested that you buy a house and land package; versus land and then shopping for a house - why? A fixed H&L package normally gives you more certainty into the total costs. If you went and shopped for a house design, they normally don't include site costs as part of the advertised price, etc… Also try go for a turnkey package - what is turn-key? It means everything is done; you just move in. On a new H&L package, their maybe be potential to save on stamp duty (i.e. pay stamp on the land only, the build is exempt of buying "off-plan). Also for a new H&L, be prepared to pay a "construction percentage rate" whilst the house is being built…You settle the land 1st and this activates your mortgage as a construction loan until the house is completed (take note of staged payments to be made to the builder) - so there are holding costs. Another way is to buy a H&L package with 1 single contract - these are rare (since only developers who are prepared to build the house) can offer this. The positive of such an arrangement is that you pay a deposit and don't pay anything until everything is finished; saving you interest; however, there are stamp duty implications.

  3. Old houses always come with their teething problems…So a full inspection is a must if you consider this option.

  4. There are some pockets of Trugs that are still cheap (established house and land)…But nevertheless; Trugs probably has a better reputation than Hoppers.

  5. Depending on your budget and what you are willing to pay, always try buy the best that you can afford in a better area. Also consider body corp fees. Some outright refuse to pay body corp fees in land estates - it has its plus and minus…but I find it more plus than minus. The fee, typically/generally, keep out the "hoons"/"riff-raff"…

  As always, my 2 cents are just that. Always seek other advice.

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    rav_stk on 14/01/2014 - 10:32

    Thanks siu_loong_bao.. very good information..

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  2jzzzz on 14/01/2014 - 10:21

  We just bought a 7 year old house, 4/2/2 in Altona Meadows. Great area, near beach and park. Some houses are around the $350k mark, but are older houses. We paid more for ours. If you are ok to head out, I would build to take advantage of the tax savings.

  Eill you be a first home buyer?

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    rav_stk on 14/01/2014 - 10:41

    yes correct.. would be my first home

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  shortarmsdeeppockets on 14/01/2014 - 10:30

  I must be honest, I'm not familiar with the suburbs you've listed as I'm not from Melbourne, but I have to say that $350k sounds pretty cheap to me for a house and land. In Darwin, you're looking at $650k+ for a decent house/land package in a half decent area, but maybe that's just here. As noted in the previous comment, make sure you work out the total cost so there are no surprise extras added on.

  Established houses will always have their issues (as highlighted by previous commenter), including some that won't be picked up on a standard building inspection. That said, an established suburb (in my opinion) will tend to be more pleasant to live at least in the short term - no other building work going on, established neighbours, established parkland, established shops, established public transport…but will often come with a higher price tag than "new build".

  Get LOTS of advice. Speak to friends, family, colleagues. Get professional advice if you can (NOT just from the sales agent selling the new build), speak to multiple real estate agents about the areas you're interested in, and discuss growth prospects in those areas.

  Your head should be spinning from all of the advice…everyone will have an opinion, and of course THEY are right and everyone else is wrong! :-) When it comes down to it, there is no right/wrong, it's just about what works for you after you've balanced up all of the pros & cons.

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  kingsville on 14/01/2014 - 13:19

  Good luck, we are in the west too.

  My view is that you shouldn't be scared of buying existing houses because you know what you are getting (in terms of the housing stock and the suburb). But of course, do a building inspection.

  We have been in South Kingsville for 11 years (as a couple, and now as are family of three kids) and have been surprised with the rapid change over time. Especially the dodgy people on the street have been crowded out by gentrification! Friends have moved from Altona North to Hoppers to knock a bit off the mortgage and are very happy there.

  Travel time can be a big concern with the road to Werribee clogging up everyday. I'd suggest you take that into consideration as well. There are cheap houses with decent blocks (enough for trampoline/swings/etc) in Laverton too (i.e. http://www.domain.com.au/Property/For-Sale/House/VIC/Laverto…)

  Again, good luck!

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  lisss on 14/01/2014 - 14:21

  I bought a 12 year old, well built two story townhouse in good condition (with some minor issues which I made sure I was aware of pre-purchase). For a brand new one story villa in the same area, it would have cost me at least $50k more + the extra stamp duty.

  The kitchen and bathrooms are a little outdated decor wise but not too bad. I have spent $2k on a new hot water system and know that I'll be needing to replace the split system air cons within the next few years. Apart from that, no major costs have arisen and I was happy to get a bigger house (2nd story) and take the on the risks of an older property for the 50k saving.

  That's the type of decision you'll need to be making.

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  batrarobin on 14/01/2014 - 17:01

  350k sounds cheap as compared to the properties here in Perth.

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  horsome on 14/01/2014 - 19:29

  Wow thats good for h&l, and is trug 30 mins from cbd? Adelaide price/size equivalent is about hour out considering traffic and in shonkily planned suburbs not to mention the demographic. Looks like we might be moving…

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    rav_stk on 16/01/2014 - 20:13

    They say its 19 kms not sure about the time it might take to drive away but what I have heard the peak hour traffic is pretty bad.. There is a railway station in next suburb.

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  Bill48 on 15/01/2014 - 07:57

  Love older houses, with all their faults. Thicker walls, higher ceilings, quirky layouts, and sometimes cheaper. Add value to it as and when you can afford. Find new houses to be sterile, cardboard walls, never enough powerpoints or this or that (watch this in your specs). The garage seems to be the largest "room" in the house! What was the old song about "ticky tacky" houses?

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  sheikyerbouti on 15/01/2014 - 10:17

  +1

  It's all about constructions standards.
  Houses built between 1910-1990 were generally far far better constructed than anything built since.
  Higher ceilings, larger eaves - more heat=proof.
  Double brick for better insulation (but can be a heatsink if you get a 7-day hot run).
  Floorboards built off ground on piers (rather than a slab) - better for ventilation.
  Internal brick walls (rather than some framing and fibro sheets) - better for sound and insulation.
  Less open-plan design, meaning more efficient to heat/cool.

  Newer houses concern me a lot. Many roofs are built using gusset plates - ie all the timbers don't have cut joints, they're butted up against each other and connected with a plate. This is VERY fragile particularly in fires - collapses will happen (ie new house, rather than just a repair).
  Most new houses are built on concrete slabs, and have a couple of main steel bearer beams with all the wall frames hanging off them and bolted to the slab. Flimsy.
  Many mcmansions are brick veneer at the front but have an entire side made of fibro (to keep cost down - people want cheap, not good). Internal finishings are crap. All the doors are hollow core. Kitchen tiling ends at the fridge space and is left as bare concrete. The underside of window frames aren't sanded let alone painted.

  My stupid parents in law bought a brand new house because it looked so nice and clean and modern, despite it being flimsy. THEY ARE BUILT TO LOOK GOOD AT SALE NOT TO LAST. 6 months later they had to re-do the bathroom as all the nice clean looking grouting around the bath and tiles collapsed. Hello $$$$$.

  TLDR: most modern houses, and almost ALL houses on estates, are shoddy flimsy crap. Future slums. Avoid! Better renting a good solid house in a closer area to the city.

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    rav_stk on 16/01/2014 - 20:11

    I do agree, I am not really convinced about the quality of construction but again its the in between route people have chosen. Double brick for example would add more cost.