Building vs. buying: What’s the best for first-home owners
When you’re starting to think about buying your first house, this is a question you’ll almost certainly ponder: should I look for a [house for sale in the Adelaide Hills](https://www.nitschke.com.au/properties-for-sale/) or buy land and build a property? With a region like the Adelaide Hills and Fleurieu Peninsula, where the land size is larger than metropolitan areas, you might be sitting on the fence.
# Buy or build in the Adelaide Hills?
Building vs. buying a [house for sale in the Adelaide Hills](https://www.nitschke.com.au/properties-for-sale/) and Fleurieu. The numbers. While the property market has evolved dramatically over the past few decades, this is a timeless question. According to recent statistics by Finder (as of May 2018), the median lot price is $220k. The median estimated construction costs are $198k. This is based on a “three-bedroom brick veneer home on a level block of land with a medium finish quality.”
But, then we need to take into account stamp duty. While, in some states, first-home buyers might be in the running for a concession on your stamp duty, in South Australia, this is only for those buying new apartments in the city. The stamp duty on vacant land (assuming median price) is $7,680. Then, there’s the First-Home Owners grant for building. You have access to up to $15k if you choose to construct your new home (valued up to $575k).
Let’s say you do decide to build (a three-bedroom brick veneer house, for example). You’ll probably add another 25% to the end cost to finish off the house. Once we add the first-home buyer grant, your house would total approximately $516,293. Compare this figure to the latest median house price (from Domain), where you’re looking at $533,525 to buy an established house in Adelaide. Then, once we add stamp duty, that price rises to $556,703.
## The verdict?
**Building your Adelaide Hills house is $40,409.25 cheaper. **
While buying a house is slightly more than building ($516,293 vs. $556,703), there’s more to this debate than just a financial perspective. Convenience vs. getting what you want. You might be ready to move into your house now. If so, buying a pre-built property could be the better option. However, there might be things that you have to sacrifice that you initially wanted, such as a spare bedroom or outdoor entertaining area. Choosing to build, you have control over the design.
When choosing between buying or selling a house in Mount Barker, Littlehampton, Nairne, Strathalbyn or any other region of the Adelaide Hills and Fleurieu Peninsula, make this big decision with the advice of a local [real estate agent](https://www.nitschke.com.au/about-nitschke/meet-the-team/). All [real estate Adelaide Hills](https://www.nitschke.com.au/) decisions are also financial and lifestyle choices. Talk to us to create a property strategy that meets your future goals.
