Top 10 Reasons You Should Build New Instead of Buy Second Hand

29th April 2024

Finance & Budgeting Pre-Construction Design & Trends Sustainability & Energy Efficiency

Discover the top 10 reasons why building new beats buying second hand. From stamp duty savings to modern design choices, this guide breaks it all down for Australian home buyers.

Top 10 Reasons You Should Build New Instead of Buy Second Hand

When it comes to buying your next home, one of the biggest decisions you'll face is whether to build new or buy second hand. While both options have their place, there are some huge benefits to building new that many Australians overlook. In this episode of the Home Building Hub Podcast, Colin Bischof and Darren Brennan break down the top 10 reasons why building a brand new home often trumps buying an older, second hand property.

Here’s what they had to say.

1. Huge Stamp Duty Savings

When you build a new home through a house and land package, you only pay stamp duty on the land component.

• Example:

• • Stamp duty on $300,000 land: ~$11,370

  • Stamp duty on $600,000 secondhand home: ~$31,070

• That’s almost $20,000 in savings – money you could put towards upgrades like a premium kitchen.

2. Builder and Product Warranties

New homes come with warranties, typically:

• 7-year structural warranty (often longer)

• Manufacturer warranties on appliances, paint, plumbing, and more

• Peace of mind that you won’t be hit with unexpected repair costs straight after moving in

3. Choice of Floorplan and Design

You’re not limited to what’s already built. When you build new, you can:

• Choose a layout that suits your lifestyle

• Make changes with your builder (move a wall, add a bedroom)

• Avoid costly and stressful renovations

4. Personalised Colours and Finishes

One of the best parts of building is selecting your finishes:

• Choose colours, flooring, cabinetry and more

• Often guided by professional colour consultants

• Tailor the home to your style from day one

5. Pick Your Block and Orientation

With land estates offering choice, you can:

• Select a north-facing block for better natural light

• Ensure your living areas and bedrooms benefit from passive solar design

• Take advantage of better energy efficiency and comfort

6. Meet New Energy Standards

New homes meet the latest energy efficiency codes:

• From October 2023, most homes in Victoria must be 7-star energy rated

• Better insulation, efficient heating/cooling, solar panels, and more

• Lower energy bills and a smaller environmental footprint

7. Minimal Maintenance

A new home means:

• No repainting, fixing tiles, or replacing worn-out carpets

• Low-maintenance materials like aluminium windows and Colorbond roofing

• More time relaxing, less time doing DIY

8. Masterplanned Communities and Amenities

New builds are usually in modern estates, offering:

• Parks, walking tracks, shopping centres, and schools

• Like-minded families at the same stage of life

• A greater sense of community and lifestyle benefits

9. Built to Today’s Standards

Building codes improve over time. Your new home will:

• Be stronger, safer, and more energy-efficient

• Include modern inclusions (even standard fittings are impressive today)

• Provide long-term value and comfort compared to older homes

10. It's Brand New

At the end of the day – it’s all yours.

• No worn carpets, no questionable toilets, no patchy renos

• No one else’s design choices or ‘DIY’ shortcuts

• A fresh start in a home that truly reflects your vision

Key Takeaways

• Building new often saves tens of thousands in stamp duty.

• Warranty coverage means fewer nasty surprises after you move in.

• You control the layout, colours, and inclusions.

• New homes are energy-efficient, low maintenance, and built to higher standards.

• Being part of a new community offers lifestyle benefits beyond the house itself.

🎧 Listen to the full episode: 👉 Top 10 Reasons You Should Build New Instead of Buy Second Hand

Glossary of Terms

Stamp Duty – A government tax paid when purchasing property, usually based on the total value of the transaction. Energy Rating – A measure of how efficient a home is to heat and cool, with 7-star being a strong standard under the new building regulations. Orientation – The direction your house faces, which affects sunlight, heating, and cooling needs. Colour Appointment – A meeting with a builder’s design consultant to select internal and external finishes for your home. Structural Warranty – A warranty provided by the builder that covers structural defects for a specified period (typically 7 years in Victoria).

Frequently Asked Questions

Is building always more expensive than buying second hand? Not necessarily. While upfront costs can be higher, savings on stamp duty, maintenance, and energy bills often make building new more cost-effective in the long run.

How long does it take to build a new home? Build time varies, but generally ranges from 6 to 12 months depending on the builder, home design, and permit approvals.

Can I still customise my home if I choose a house and land package? Yes – most builders allow for changes to the design, layout, and inclusions, depending on your budget and the builder’s flexibility.

What are the downsides of building new? Build time, decision fatigue, and limited location options in inner suburbs can be challenges. However, many buyers find the benefits outweigh the drawbacks.

About the Home Building Hub Podcast

The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process—completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips.

Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer

Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.