australian property market

When you picture your next home, are you standing on a vacant block ready to build your dream, or walking through the front door of an established property that’s move-in ready?It’s a question many Australian buyers face — should you build or buy? In this episode of Should’ve Bought That by Ynance, builder Adam Earey shares honest insights from over a decade in the trade. From foundations and soil quality to builder selection and council delays, this guide explores what really matters before you commit to your next property. Weighing Up the Real Costs of Building vs Buying Buying an existing home can feel simpler, but it often hides extra costs. Older properties may have subfloor issues, poor foundations, or outdated materials that require major repairs. Building, meanwhile, gives you the advantage of new materials, better energy efficiency, and custom design — but it comes with planning, permit, and construction costs. Hidden Costs When Buying Hidden Costs When Building As Adam notes, “Every situation is different. The best choice depends on the condition of the property, your budget, and long-term goals.” How Land Quality Impacts Your Build Before you build, understanding the soil rating and block characteristics is essential. In new estates or subdivided land, soil reports determine foundation design and cost. Poor soil requires deeper footings and more steel reinforcement, while tree roots can destabilise the ground and demand costly root barriers. Earey also stresses the value of flat, well-drained land. Sloping blocks offer great views but higher excavation costs. What you save on purchase price can be lost in site preparation. Choosing the Right Builder When selecting a builder, look beyond price.A registered builder should have an official licence (Domestic Builder – Unlimited) and a clear portfolio of completed homes.Ask for client references, detailed specifications, and clarity around what’s included in your contract. “The more questions you ask, the better your feel for the builder,” says Earey. “It’s about relationship and transparency as much as construction quality.” For custom builds, smaller local builders often offer greater flexibility and attention to detail than high-volume firms. Larger builders may deliver faster, but their designs are often fixed, and custom changes are limited. Renovate, Knock Down, or Start Fresh? If your current home has “good bones” — sound structure, solid foundations, and quality materials — a renovation or extension can be a smart way to add value without starting over.But for homes with poor layout, low energy ratings, or crumbling stumps, a knock-down rebuild can be the better long-term investment. Modern homes must now meet a minimum 7-star energy rating, meaning improved insulation, double glazing, and energy-efficient design. This not only reduces running costs but can also increase future resale value. Timeline and Planning Considerations From permits to final handover, a typical four-bedroom build takes around nine months — though delays can occur if materials or approvals take longer.Buyers should factor in holding costs, interest on the land, and potential delays from council or suppliers. Contracts usually include liquidated damages clauses, which protect the buyer if the builder exceeds the agreed timeframe. Always review these with your broker or legal adviser before signing. When to Speak with a Mortgage Broker Whether you’re buying or building, early conversations with a mortgage broker in Australia can save time and money.A broker can help you: Frequently Asked Questions Is it cheaper to build or buy a home in Australia? It depends on land costs, soil quality, and the level of finish. In regional areas, building can be more cost-effective, while established metro properties often hold stronger resale value. What’s the biggest hidden cost when building? Soil and site preparation. Poor soil can require deep foundations and additional steel, adding thousands to your budget. Can I get a loan before finalising my builder? Yes. A mortgage broker can help secure pre-approval based on your estimated build cost, then finalise the loan once your builder contract is confirmed. How long does council approval take? If your plans comply with zoning and setback rules, permits may take only a few weeks. If town planning or dispensations are required, expect one to two months extra. Book a free consultation with Mitch. Mitch offers a free, no-obligation consultation focused on your specific property goals. Mitch services home buyers and investors living in Melbourne, Maroochydore, Brisbane or Sunshine Coast in Australia. Click through now to book your free call and start preparing for your next property opportunity.