When it comes to finding your dream home, the big question often boils down to this: should you build it from scratch or buy an existing property? It’s a tough decision, and one that depends on your lifestyle, budget, and long-term goals.
Building gives you the chance to create something truly unique, tailored to your needs, while buying offers convenience and the ability to move in right away. Both options have their perks—and their challenges.
At Makin Homes, we’re all about turning your dream home into a reality. So, if you’ve been tossing up between building and buying, let’s break it all down and see what’s right for you.
Key cost comparisons
Cost of building a new home in Perth
The cost of building a home in Perth varies depending on design, materials, and finishes. For custom-built residential homes, including single and double-storey dwellings, the cost typically ranges from $2,450 to $4,750 per square metre. For an average-sized home of 235.8 square metres, this amounts to approximately $577,000 to $1,119,000 for construction alone.
This range represents standard residential builds. High-end architectural designs, luxury finishes, or bespoke features can push costs higher. Additionally, it’s important to note that these building costs can vary depending on the suburb or region. Estimates also exclude additional expenses such as land purchase, site preparation (e.g., levelling or soil testing), landscaping, and extras like pools or solar systems.
Cost of buying a home in Perth
Buying a home in Perth offers convenience, but the costs go beyond the property’s price tag. As of late 2024, the median house price in Perth sits at approximately $740,000. While this figure represents the cost of acquiring a property, there are additional expenses buyers need to consider, such as:
- Deposit: A deposit typically ranges from 5% to 20% of the property price. For a $740,000 home, a 5% deposit is $37,000, while a 20% deposit is $148,000.
- Lender’s Mortgage Insurance (LMI): If your deposit is under 20%, you may need LMI (unless you qualify for government assistance like the First Home Loan Deposit Scheme), which varies based on your loan size and deposit.
- Stamp duty: For a $740,000 home, stamp duty in WA is approximately $29,225. First-home buyers may qualify for exemptions, so it’s worth checking eligibility.
- Loan establishment fee: Some lenders charge a one-off fee for setting up your mortgage, typically ranging from $200 to $600.
- Mortgage registration fee: This one-off government fee for registering the mortgage is $210.30.
- Building and pest inspections: Essential for identifying structural or pest issues, these inspections range from $400 to $800.
- Legal and conveyancing fees: Hiring a solicitor or conveyancer for the transfer process typically costs $1,000 to $2,500.
- Utility connections and adjustments: Fees for connecting utilities and reimbursing the seller for prepaid rates often total a few hundred dollars.
- Moving costs: Moving expenses range from $500 to $2,000, depending on distance and volume.
- Council rates: Annual local government fees depend on your property’s location and value.
- Building insurance: Lenders usually require building insurance, which costs between $800 and $2,000 annually, depending on coverage.
Additional costs to consider:
- Strata fees: If your property is part of a strata development (e.g., apartments or townhouses), quarterly fees will cover maintenance and shared services.
- Ongoing utility bills: after connecting utilities, regular bills for water, gas, and electricity depend on your consumption.
While buying a home offers immediate access to established neighbourhoods and infrastructure, the hidden costs can quickly add up. It’s essential to factor these into your budget to avoid surprises.
So, which option suits you best?
Build a home if you value customisation and control
When you build a home, you have the freedom to design every detail from scratch. This makes it the perfect option if you’re looking for:
- Personalised design: Building allows you to create a space tailored to your lifestyle. Need a home office, a theatre room, or open-plan living areas? You’re in charge of every detail, from the layout to the finishes.
- Future-proofing your space: Building lets you design with the future in mind, incorporating features like smart home technology, energy-efficient systems, or extra bedrooms for a growing family.
- Energy efficiency: New builds meet modern energy standards and allow you to go further with sustainable choices like solar panels, double-glazed windows, and sustainable materials—saving you money in the long term.
- Government incentives: In WA, you can benefit from programs like the First Home Owner Grant (FHOG) and reduced stamp duty when building a new home. These savings can make building a more affordable option.
If you have a vision for your dream home and want a space that’s uniquely yours, building is the way to go. Just be prepared for a longer timeline and plan for additional finishing costs like landscaping and driveways.
Buy a home if you value speed and convenience
Buying an existing home lets you move in quickly, often with less upfront decision-making. Consider buying if you’re looking for:
- A quick move-In: Buying is ideal if you need a home immediately. Settlement usually takes just a few months, allowing you to move in and get settled quickly.
- Established neighbourhoods: Existing homes are often located in well-established suburbs with access to schools, parks, shops, and public transport. You won’t have to wait for new infrastructure to develop.
- Certainty in what you’re buying: With an established home, you can see exactly what you’re getting. Building and pest inspections can identify any issues before you buy, giving you peace of mind.
If speed, convenience, and access to established amenities are your priorities, buying might be the better choice. Keep in mind that older homes may need repairs or renovations to suit your style or meet modern standards.
Take the first steps towards your dream home
Deciding whether to build or buy a home is a big decision, and there’s no one-size-fits-all answer. While buying offers convenience and speed, building allows you to create a space that’s truly your own, tailored to your lifestyle and needs.
We know building a home can feel like a daunting process—there are so many decisions to make, from choosing the right block of land to managing budgets and timelines. But at Makin Homes, we’ve seen it all, and we’re here to make it easier.
Whether you’re dreaming of custom home designs in Mandurah or exploring beautiful single storey home designs, we’ll work with you every step of the way to create a home that truly fits your life. Building your home should be an exciting journey, and with our hands-on approach, we’ll make sure it’s smooth, personal, and stress-free.
If you’re ready to take the first step, contact Makin Homes today—we’d love to bring your vision to life.
