Why 2023 May Be the Best Year to Build Your First Home
From finding a block of land to home design and construction, first-home buyers quickly discover building a new home is a big project. And as with any big project, the sooner you start, the better.
Whether it’s a knock-down rebuild project or purchasing a house and land package, there’s no time like the present to start building your first home.
Why Wait? The Benefits of Building Your First Home in 2023
- Beat rising energy costs. Building a new home to make it climate-smart will help you dramatically cut the costs of heating and cooling, which are set to continue rising.
- Rent money is dead money. If you have the deposit required for home ownership, paying rent to help someone else pay off their investment home is a waste of your hard-earned cash.
- Older homes come with hidden costs. Maintenance costs on an older, established home will continue to rise as the property ages. Many of these expenses can be avoided by building a brand-new home.
- Personalise your dream home. Whether you need extra space to work from home or to accommodate a large family, building your own home allows you to have a house design that will work for your lifestyle.
- Beat the rising cost of building materials. As energy costs rise, so will the price to produce materials used in the construction process such as aluminium and cement.
What Market Trends are Impacting First Home Building in 2023?
- In NSW, stamp duty reform has made it easier for first-home buyers to enter the market with a lower deposit required by opting to pay land tax.
- Despite a series of interest rate rises in 2023, property prices have not fallen as much as some experts expected. Lower listing volumes are also being seen.
- Rent prices are forecasted to continue rising in 2023.
All of these factors add up to it being harder and harder to find an established house to buy. A new build might be a more realistic option for many people in 2023.
Why You Shouldn’t Wait to Build Your First Home
Potential for higher interest rates in the future
Interest rate rises in 2022 and 2023 had many people worried about how it was affecting their household budget and home loan repayments. However, these rises followed a sustained period of historically low interest rates. Though we can never be sure, economists are now predicting that interest rates will likely hold steady until at least 2024.
Interest rates are still at very low levels in comparison to other times in recent history, and there is still some way to go before they return to a normal range. With this in mind, securing a loan now will see you begin to start paying off your mortgage while rates are still relatively low. It also means you’ll give the home builder in Sydney to start the foundation of your new home sooner or later.
The continued rise of material and labour costs
Despite an easing of supply chain delays that the construction industry has endured in recent times, the prices of building materials are likely to continue rising for some years. This is largely due to the rising cost of energy and its impact on manufacturing.
Employing a builder who can offer a fixed-price building contract is one way to overcome this because you don’t want any surprises once construction begins.
Contractor fees are also likely to continue to rise in the short term, with a shortage of skilled tradespeople expected to present a huge challenge for the construction industry over the next decade.
Decreasing availability of land
It’s getting harder and harder to find the right block of land. This is why many first-home buyers choose a modern two-storey house designs and land package where all the hard work is done for you.
The site you choose can affect how much it costs to build your home, so it’s worth doing some research before deciding it’s your dream block and making a purchase. As well as location and orientation, size and shape, slopes and utilities present are all factors that need to be taken into consideration when choosing a building lot.
Potential for fewer incentives for first-time home builders
Government grants and government incentives for new best home builder vary depending on which state you live in. However, state government grants are already lower than they were several years ago and the latest federal government incentives are slated to expire by 2025.
It’s unlikely governments will continue to offer such attractive incentives to build in the near future considering the current economic climate, making now the ideal time to make the most of them.
I’m Ready to Build My Dream Home in 2023! How Do I Get Started?
Planning how much you will need in your budget and getting your finances in order will have you well-positioned to find the perfect company to build your dream home.
The most important step for a successful first home build
- Planning your budget. While it can be difficult to estimate how much you’ll need to build your new home, your first step should be to talk to your bank and get pre-approval for a home loan. Make sure you have a contingency fund for the construction stage, budgeting for all of the extras you’ll need, such as appliances, furniture and landscaping, to ensure you have enough money for a quality build that’s finished correctly.
How to find the right builders for your first new build
- Nail down your builder early on. Research builders who work in your local area and get recommendations from friends and family. Viewing display homes is a great idea to get an understanding of the quality of their construction and ask to speak to their former clients, if possible. Connecting with builders who are members of industry associations is another way to ensure quality construction on your new build.
Who to call before you start building
Whether you’re looking for house and land packages or you are thinking about a knock-down rebuild, New South Homes is a one-stop shop to help you build your first home. From deciding on the look of your new house to how the construction process works, our award-winning team are friendly and knowledgeable.
From first-time home buyers to established home investors, New South Homes also has a range of home designs to suit your site, lifestyle and needs.
Ready to start your building journey? Chat to our team of experts today and get a FREE personalised quoteFind Out More