Should you buy new or established? Here’s what to consider

Buying a home comes with one of the biggest decisions you’ll face – do you go for a brand new build or choose an established property? Each option has its own advantages and trade-offs, and your choice often depends on your goals, lifestyle, and budget.

Housing Industry Association (HIA) research found sales of new detached homes increased by 18.8% in the three months to June 2025 compared to the first quarter, representing a three-year high. Here’s a closer look at the pros and cons to help you weigh up which could be the better fit for you.

The pros of buying new:

1. Less repair and maintenance
   Older properties can be costly to maintain, but with a brand new one, you’re unlikely to need to fork out much for repairs and maintenance, at least for the first few years. If there are issues with the building or appliances, they will likely be covered under warranty.

2. Energy efficiency
   New homes have to meet certain energy efficiency standards, which can mean lower power bills and a more comfortable living environment. It also reduces your environmental footprint.

3. Room to customise
   Depending on the new build, you may be able to customise the property as per your preferences, whether you want earthy colours and natural materials like wood and natural stone, or bold wallpaper and art deco design vibes. Renovating and transforming an established property, on the other hand, can be costly and time-consuming.

4. Depreciation opportunities
   For investors, new homes can offer depreciation perks, which could improve tax savings. You may be able to claim wear and tear on a new property as a tax deduction and spread the costs over several years.

The potential downsides of buying new:

1. Building can be stressful
   Unlike with an established home, where you can usually move straight in after settlement, waiting for your property to be built can be stressful. Timelines and budgets can easily blow out, and there may be delays with council approvals or issues with the builder.

2. You may have to compromise on location
   New builds in newer suburbs can sometimes lack the character of established suburbs, where the community and infrastructure has developed over time.

The capital growth potential could also be weaker in new developments, often due to large housing releases that saturate the market. It’s important to do your homework before deciding whether a location is right for you.

Other things to keep in mind

Government incentives can sometimes tip the scales. For example, the First Home Owner Grant may be available if you’re buying or building a new property, while some stamp duty exemptions or concessions apply to both new and established homes.

The rules around it being a new home or a substantially renovated one vary by state and territory, so look into what’s available in your area.

Like to chat further?

If you’d like advice about government incentives or stamp duty concessions, your buying capacity or pre-approval support with your finance, we can help. Get in touch today and we’ll walk you through the finance side of things and help you get into your own home sooner.