There seems to be a common misconception out there that building a property from scratch is somehow a more advanced strategy compared to buying an established one, and the perceived greater risks associated with building means it should only be reserved for experienced investors with deeper pockets.

This couldn’t be further from the truth, and in a number of ways owning a brand-new property can actually be far less hassle for the investor than a second hand one.

It can also be a very savvy strategy to literally manufacture the most suitable property type for maximum growth potential within the respective market.

Not to mention that the ultimate cash flow of a new build far exceeds that of an established one, making the holding cost of brand-new investment property much cheaper.

There seems to be a common misconception out there that building a property from scratch is somehow a more advanced strategy compared to buying an established one, and the perceived greater risks associated with building means it should only be reserved for experienced investors with deeper pockets.

This couldn’t be further from the truth, and in a number of ways owning a brand-new property can actually be far less hassle for the investor than a second hand one.

It can also be a very savvy strategy to literally manufacture the most suitable property type for maximum growth potential within the respective market.

Not to mention that the ultimate cash flow of a new build far exceeds that of an established one, making the holding cost of brand-new investment property much cheaper.

Ironically, this is the secret weapon of building from scratch for the investor. By building, you’re going through a process that many competing buyers simply don’t have the financial means or housing circumstances to entertain.

As an investor, you’re in the unique position whereby you can patiently build the perfect home to suit the frenzied home buyer market without competing with them at open homes and auctions as you would when trying to buy an established property.

It’s the best of both worlds. You can ride the coattails of the owner occs to get the capital growth, without going head-to-head with them when buying.

With some simple fiscal planning along the way, the net overall cost of building is pretty much exactly the same as buying established. In a nutshell, when building from scratch you only pay stamp duty on the land, and not the cost of construction. 

So, for the average new build property, this means that stamp duty will be around half the cost of an established property purchase of equal value.

In other words, you’ve saved on paying half the cost of stamp duty by building new. This saving is no small amount either, we’re talking upwards of $15,000 here. So, by redeploying this stamp duty saving to cover the cost of loan repayments during construction, you’re essentially in the same position that you would be had you bought established.

Just like any property purchase, there is a certain degree of non-negotiable due diligence and research that needs to be done before committing.

Obviously, the builder falls into this category and fortunately there are plenty of ways to get the critical intel and verify that the builder is one that you can put your utmost trust in.

Any builder that we put forward will be supported by the findings of our independent assessment and one with sufficient Home Building Compensation Fund (HBCF) insurance for the project just in case, too.

That said, this freedom of choice is one of the biggest strengths of deciding to build in the first place.

You get to choose exactly who will be behind and responsible for the creation of your precious investment asset.

You can go in with confidence being fully across all important aspects such as delivery times, construction materials, the builder’s quality control process, design features, standard of inclusions, and upgrade options, etc.

Well, to us, one of the main points of building new is to end up with a superior product than you can find on the open second-hand property market, and doing so in a much more controlled environment away from the pressures of trying to negotiate a deal against emotionally driven buyers.

And with the majority of growth markets throughout the country overrun with over-zealous owner occupier buyers, couple this with low listing numbers due to dwindling housing supply, and sadly the status quo means it’s a case of ‘good luck’ finding any established property gems in a good location at a decent price.

Building turns this frustrating situation on its head and enables the investor to take complete control of what they’re buying and caps the price they need to pay for it.

We understand that, but a couple of things to keep in mind.

Firstly, building a new home doesn’t have to take forever.

Sure, finding an excellent block of land that meets the criteria can take time, but the construction process can take as little as just six to eight months.

Secondly, there are certainly no guarantees that finding and successfully securing an established property that ticks each and every box will take less time than the build process.

When buying established, you’re entirely dependent on unrelated third parties wanting to sell homes that you deem worthy to buy and if they’re just not becoming available there’s little you can do about it.

Not to mention false starts due to being outbid or even failed building and pest inspections.

Building from scratch, however, provides a much more definitive timeframe and ultimately more control for the buyer by removing any need to compromise on criteria nor reliance on the current stock pool of the established property market.

We have reviewed literally hundreds upon hundreds of building and pest inspection reports over the years, along with ones from structural engineers on occasion too, trust us when we say that established properties are by no means clear cut when it comes to trying to figure out what may be lurking beyond the surface.

Not to mention that when you’re buying an established property, you’re inheriting a collection of materials, fixtures, fittings, and appliances all at varying degrees of their ‘shelf life’.

Building from scratch, on the other hand, means that everything is brand new.

The property will be covered by a six-year structural warranty with all appliances and many fixtures and fittings covered, too.

In turn, the likelihood of immediate maintenance costs on the property are significantly minimised, greatly reducing cash-flow risk.

Furthermore, building from scratch provides an opportunity for the property to be independently checked at each key construction milestone along the way – slab, frame, internal plumbing and wiring, roof cavities, termite barriers, etc. can all be inspected and verified as sound without physical obstruction.

This offers a degree of long-term peace of mind that an established property just can’t match.

That’s where we come in.

As we have done in the past with any recommendations for established property purchases, we apply the same philosophy to a new build.

We facilitate all required research and analysis on all options to provide expert guidance on all aspects of the build such as builder selection, fixed price, floor plan, façade, inclusions, upgrades, colour selection, and landscaping, etc.

We will project manage the process from start to finish and keep everything on track for you.