You may be watching the property market like a hawk right now to decide whether it’s really the best time to be building a new house – and you’re not alone.
The dream of building a new house is still very much alive and kicking – the key is in knowing when is a good time to build a house is for you and your circumstances.
Is now a good time to build a house in Australia?
When building a home or acquiring land, “timing the market” or finding the perfect time is almost uncertain.
Inflation is at an all-time high, interest rates are creeping upwards, and the rumours around dwindling building supplies and labour shortage in a COVID-affected landscape create nail-biting uncertainty amongst buyers.
History shows that record-high prices due to inflation tend to persist, and construction costs are no exception.
But it’s not all doom and gloom.
While the reality of increased building costs is undeniable, it remains a fact that today is still the best time to build a home.
A dollar today holds greater value than a dollar in the future, meaning that construction costs today are essentially less compared to building the same home in the near future.
What to consider when deciding the best time to build a new house?
Your finances and your ‘why’
It’s easy to be spooked by the financial implications of building a new home in today’s economy and you might be tempted to grip your savings tightly as you wait out the storm. But if the finance is there, you might ask yourself whether you can afford to wait.
When you’re weighing up the decision, always refer to your ‘why’.
Are you downsizing to make life easier and start a new stage? Has your family outgrown your home and is bursting at the seams for more space? Are you building your first home and getting a foot into the property market? If you’re in a position to take the plunge, let your ‘why’ lead the way.
The property market is always changing
What is today, may not be what is in 12 months. Whether the market is at a peak in the area or predicted to fall, one thing you can count on the market for is to be forever changing. Several key factors contribute to the dynamic nature of the property market.
- Economic conditions play a significant role, influencing property values and overall market performance. Economic factors include inflation rates, employment levels, and GDP growth, all of which impact the purchasing power of potential homebuyers.
- Supply and demand dynamics are crucial determinants of property prices. A scarcity of available properties can drive house prices upward, while an oversupply may lead to a decrease in property values. Trades and materials availability also play a role in construction costs, affecting overall property prices and influencing decisions about building new homes.
- Interest rates, both current and predicted, are pivotal in shaping the market landscape. Fluctuations in interests can impact mortgage affordability, influencing the demand for properties. Low interest rates often stimulate demand, while rising rates may lead to a slowdown in the market.
- Location and population trends are additional factors that contribute to market variability. The desirability of a location, accessibility to amenities, and population growth or decline all influence property values. Markets can experience shifts based on changing preferences, urbanisation trends, and economic opportunities in specific regions.
- Market performance, as reflected in past trends and future predictions, adds another layer of complexity. Investors and homebuyers often analyse historical data and forecasts to make informed decisions. However, even with careful analysis, the market’s response can be unpredictable.
You could be waiting for a change that never comes!
Geelong is thriving
Once the best-kept secret of regional Victoria, Geelong is becoming increasingly popular for its accessibility to Melbourne, affordability, and for being a stunning town with all the perks of a big city in a coastal location.
And because Geelong is thriving, so is its property market, making a newly built Geelong home an investment worthy of consideration.
New homes on old ground
When you’re unsure whether you should build new or spruce up old, the happy medium can be a knockdown rebuild where you keep all the perks of your land and location and still get the new home you’ve been dreaming of (without losing your mind to renovations).
Knockdown rebuilds are becoming more and more popular for their ease (with the right builder), versatility, and convenience in keeping everything you love about an area and property with a beautiful new home to live in.
Things are speeding up
We’ve seen some ups and downs in the building industry across the COVID-19 pandemic, but 2023 is ramping back up to speed with timeframes and supply. As we move into this year with fresh ideas and a renewed sense of normal, reputable builders are doing the same and delivering results we’ve built our reputation on.
Homework pays off
With an investment as life-changing and exciting as building a new home, doing your homework (pun intended) will pay off. Always research and choose a reputable builder you can place your trust in and feel confident with throughout the entire build and beyond.
Geelong Homes is modelled on the same outstanding service and reputation as our brand, Hamlan Homes, which in 2023 celebrates 40 years of being a proud family-owned and operated builder widely trusted by the Geelong community.
What time of year is cheapest to build a house?
The cost of building a house generally only increases over time. Therefore, the best time to start building your home is when it suits your personal circumstances, and there is genuine demand for a more suitable home.
The ideal time to build is when you are fully prepared and have everything in place. This means having a suitable building site, securing financing, and thoroughly assessing your requirements and building options.
Ultimately, the best time to start your construction project is when you are ready and when it aligns with your personal and financial situation.
What is the most expensive part of building a house?
The cost of building a house can vary depending on several factors, and the most expensive parts of construction can differ based on individual choices and circumstances. However, some key elements tend to be more expensive in the home construction process.
The land, foundation and framing of the house typically rank higher in expenses when building a house. This is due to the substantial amount of materials and skilled labour required.
Plumbing, HVAC (Heating, Ventilation, and Air Conditioning), and electrical systems are integral parts of a home and are among the most expensive overall construction expenses. The cost, of course, depends on the specific systems chosen and the necessary features.
The interior finishes of a house can also rack up the bill, but these can be tailored to your preferences, and the cost varies based on your choices. This is an area where you can control your budget and save money. You can allocate more or less funds for your interior depending on your desired needs and aesthetics.
Ultimately, the most expensive part of building a house may vary from one project to another, and it largely depends on your priorities and the specific features you want in your new home. Effective budgeting and planning can help you manage costs and allocate resources where they matter most.
Is now your right time to build a house?
