For many of us, being a homeowner is the ultimate dream. Do you want to enjoy the stability necessary for your career development? Do you want to have a financial safety net for unfavourable economic developments? To have the opportunity to capitalise on the rising costs associated with Australian dwellings? Then, perhaps your number one priority is purchasing or building a home with the help of custom home builders. Private dwellings are the crowning achievement of our economic efforts and are a fantastic way to build equity.
You bought 450 square meters of land for $1 million? Can you invest around $600,000 in building a 200-square-meter home? Then, the final cost of your investment could be as much as $1.6-1.7 million. Do you have that kind of money? Probably not, which is why you'll have to take out a mortgage, something that a lot of Australian families avoid. However, the long-term financial advantages could be significant. Sydney's real estate growth forecast remains constant at 5.9% per year. That means if you choose to sell your property in ten years, it could bring you an ROI of over 60%. The current inflation in our country is 4.1%. Therefore, in the long run, you will almost certainly gain a profit.
If you also want to invest in a granny flat, which you can build at the same time as your primary dwelling and increase your home's market value by up to 30%. So, in ten years, for an investment of $1.6 million+, $150,000 for the price of the ADU, you could earn a total of about $3,320,000. That's an ideal scenario, and you also need to take into account the mortgage early repayment charges and inflation. However, ultimately, you should turn a profit and be safe in case of economic instability.
Build a New Home or Invest in a Market-Listed Property?
The answer to this question will depend on your subjective preferences. In terms of cost, buying an already listed home versus building a new one with the help of custom home builders is about the same. The median listening price of properties offered for sale in Sydney in 2024 is $1.6 million. At the same time, the cost per square meter for centrally-located land is about $2400. Let's say you want to buy a plot of land measuring 450 sqm, which is the minimum size needed to build an ADU. The investment will amount to $1.08 million.
The construction of a three-bedroom house, on the other hand, will require approximately 2800 dollars per square meter for a 200 sqm house, which will represent an investment of $560,000. Therefore, to move into your new property, you will need to make a total commitment of $1.64 million, which is pretty much on par with the average listing of properties already available on the market. However, the advantages of properties built with the help of custom home builders in Sydney are related to customizability.
The Personalization Advantages of Custom-Built New Homes
More than 130,000 new homes are built annually in Australia. Yet, this is not enough to quell the growing demand for housing in our country's major cities. Due to the sharp discrepancy between supply and demand, property prices are on an accelerated rise, with no prospect of change in the near future. Need more space? Freedom? Flexibility? An excellent solution would be to consider custom-built new homes designed according to your preferences. Does a custom dwelling present financial benefits? Yes, quite many, in fact.
Custom-built new homes, due to their used materials, are more thermally efficient and can be accompanied by state-of-the-art technologies that make them a more attractive market deal for potential buyers. If they have a choice between a house built twenty years ago that likely needs renovation and one built five years ago that has smart-home functionalities, most buyers will choose the newer dwelling. Moreover, newer homes will appreciate more sharply and substantially, can be rented for more, and require lower maintenance costs.
What Paperwork Is Required?
Do you want to build a new home? Then, first, you should submit a development application that includes details of the site, the square footage of the soon-to-be-built dwelling, floor plans, engineering details, and landscaping drawings. After the local council approves the DA, you will need to obtain a CC, which certifies that your proposed plan is in tune with Australia's building code regulations. Under the State Environmental Planning Policy, you can also apply for a Complying Development Certificate, which eliminates the need for a DA. However, the requirements of a CDC are somewhat stricter.
Before commencing the work on your new dwelling, you will also need an Occupation Certificate, an Environmental Impact Assessment, site surveys and even a soil report. Building a house requires a significant bureaucratic effort, which is why many people prefer to forget about the hassle and purchase already-listed properties. However, if you choose the services of a home construction company, then much of the paperwork required to begin construction will be handled by the experts you call upon. Overall, choosing custom-built new homes will be a wiser financial decision, which, although requiring countless approvals, will bring you significant returns down the line.
A Cost-Conscious and Customisable Choice
Custom-built new homes can be constructed using modern materials that provide superior thermal insulation. Moreover, because you choose the location, you will have flexibility over the residential area in which you elect to settle. Plus, you can customise the dwelling according to your subjective interior design preferences. When constructed by custom home builders in Sydney, a qualitative custom-designed dwelling can be a beneficial long-term investment, enabling you to spend unforgettable moments with your loved ones in an environment that reflects your subjective vision.
When constructed by professional companies with experience in the Australian market, custom-built new homes can be a tool to beat inflation, obtain significant long-term returns, and ensure your financial stability in moments of market uncertainty. New homes are more thermally efficient than old ones, are more attractive to potential buyers, and can be built using integrated smart appliances that give you a productivity advantage. Are newly-built homes cheap? No, but nothing in the Australian real estate market is anymore. New homes can at least be personalised according to your subjective preferences, and when it's time to sell, they will bring you a profit regardless of the current market conditions.
