When the price of established houses increase, as has been the case in the past 18 months, buying land and building a brand new home becomes an attractive alternative. Why get something second hand when you can have everything you want for a similar price?
However, the equation changes when the price of land also starts to move upwards. Recently, builders and investors have snapped up land at the bottom end. This means consumers have to choose between buying a higher priced block and borrowing more to build their dream home or lowering their expectations of what they can build to stay within their finance budget.
Fisk and Nagle Director Don Peterson says currently, the numbers still stack up for people wanting to create a home that suits their needs.
“A 3-bedroom, 2-bathroom, double lockup garage house and land combo is still possible for a total of $400,000-$500,000,” he says. “That’s also what it will cost you for a quality established home.”
“But those affordable blocks are becoming scarce, which will place increased pressure on prices,” Mr Peterson says.
If and when new land comes on to the market is anyone’s guess, but it’s never too early to get in touch with your real estate agent to share your ambitions. That will have you ahead of the market when new land becomes available.
“That early contact will give you the opportunities first, before advertising starts,” says Mr Peterson. “Be a part of the conversations that developers have with us before they break ground and you’ll also get the pick of the blocks.”
Some considerations worth pondering include:
- North facing blocks, that help maximise your solar potential
- Blocks that allow for private open space
- Cul-de-sacs and courts that engender a sense of community
- Locations near a playground or recreation area are sought after
- Blocks with a view
- Positions on the high side of the street or a slope
Fisk and Nagle Real Estate has marketed every major sub- division in the local area for the last 20 years.
“That sense of being overwhelmed by the building process is common and natural, there is always so much tied up in any real estate decision,” Don says.
“But confidence and a sense of calm comes with the right block.”