Whether you’re planning a knockdown and rebuild, buying a house and land package or ordering a kit home, it can be hard to know whether building a property is the right choice for you. Here we outline the benefits and risks of building your next home.

Benefits of building a home


You can choose the model and layout of your home, then work with the builder to tailor each room to your needs – everything from the floorplan to the lighting fixtures and tap fittings.


Be sure to carefully research any builder before choosing them. You can then monitor the construction closely and see in person the kind of quality that’s going into building your home

A construction loan can help finance your home build.


If you’re buying land at the same time, your new home may be built in a planned community, with other people in a similar situation. Planned communities often have recreation, retail, transport and healthcare facilities with safe roads and pathways, giving you access to services you and your family may need now and in the future.

Once your home build is done, you can move in straight away and won’t have to wait for tenants to move out or deal with damage from previous owners.


A new home will have all the latest construction techniques, modern materials and environmentally sustainable elements, which could save you money down the track. These may include lighting, planned workspaces, entertainment areas, insulation, and efficient heating and cooling.

If you’re building your first home, you may be eligible for government grants such as the First Home Owner’s Grant.

There may also be financial benefits for buying off the plan that give you more time to save a deposit.

Things to consider about building a home

  • New homes may cost more than older homes and are sometimes built on small parcels of land
  • You may need to pay rent while your home is being built
  • There can be unexpected costs discovered in the initial site preparation, or dealing with issues not covered in your building contract
  • Many packages don’t include the high-quality finishes you might like, which means you’ll need to pay more for anything other than the basics
  • You’ll need to monitor every aspect of construction to make sure the contractor and tradespeople stay on budget and deliver a high-quality result
  • There may be delays with building due to bad weather and other unavoidable factors.

Book a time with a Home Lending Specialist to discuss building your home

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Things you should know

This article is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. As this information has been prepared without considering your objectives, financial situation or needs. You should, before acting on this, consider the appropriateness to your circumstances.