Are you confused about whether to build a house or buy a house? There are pros and cons for each and this article will delve deep into both options so you can decide which is best for you.

The current construction and housing market in Australia are seeing uncertainty. With the after effects of Covid-19 still creating supply issues and causing costs to soar. Let’s take a look at the pros and cons of building and buying a house.

Pros and Cons of Building a House

There are pros and cons of building your own house. Here’s what you need to know:


  • Design a house to your specifications. One great pro of building your own house is building the home you dreamed of. When buying a house, you usually have to make exceptions and not get everything you want. When building your own home, you can let your building team know the exact fixtures and fittings you want.
  • First Home Owners Grant (FHOG). The FHOG is usually only available to those building their first, brand new home. This grant ranges from $10,000 to $15,000, depending on your state and eligibility.
  • Option to build with energy efficient materials. Building your own home means you can choose energy efficient building materials which will help you save money on power costs in the future. Ideas include insulation, water saving features and solar power systems.


  • Building costs may suddenly rise. While you can specify a budget for building costs, these can often rise due to delays because of weather conditions, supply chain problems or something else. Always check your building contract carefully before proceeding, so you know what is included and what isn’t.
  • May have time constraints with a construction loan. If you’re using a construction loan to fund your build, these often come with constraints. The lender might for example, place restrictions on the start and finish time of the project.

Pros and Cons of Buying a House

Here are the pros and cons of buying a house to be aware of:


  • Buying ready-built is faster. If the house is already constructed, all you need to do is sign the contract and pay the required funds. You could be moved into your new home in 30 days if you find something suitable. Building your own home in Australia can take anywhere between 4 months and one year, or even longer.
  • You know what you’re getting. Buying a ready built home means you can inspect the property and ensure it has all you need. You can get a good feel for the space and do relevant condition checks to make sure it has no structural flaws.
  • An existing house might be in a better location. If being close to the CBD and local amenities such as schools, shops and parks is important to you, buying a home might be the better option. In this case, you can view houses that are in your ideal location. When building a home, you might have to buy land in a vacant lot on the outskirts of a city.


  • Old homes can come with problems. Old houses have often been around a long time and will have had multiple owners. This means you may have to replace old plumbing pipes, water systems and electrics. And things like fixtures and fittings might be worn out and will benefit from an upgrade.
  • Renovations are costly. Even if the home you buy is structurally sound, you might have to spend on renovations to get the space into the shape you want. Walls might need to be knocked down, or an extension built on the side of the house a family member for example.
  • Pay extra Government fees. Buying a house usually incurs fees such as stamp duty, which is the tax charged for the sale of a house. This can significantly bump up the cost of buying a property.