Have you weighed up the variance in cost, from Stamp Duty on an existing home, to Draw Downs on building costs?
When I say draw downs, Im talking about as each step of the construction process is complete, another lump sum of money is required by the builder, from your bank, to move on to the next stage. You pay interest costs on this money while the house is being built.
Believe it or not, stamp duty can be more expensive. Reason being is you are paying stamp duty on a full home price as opposed to when you build you only pay stamp duty on the land portion. Once you have paid interest on the draw down over the average of 6 months build time, and of course depending on the pricing schedule and interest rate, in most cases it is cheaper to build new.
Something to think about isn’t it?
If you would like to show you exactly how this works then please contact us and mention this blog.