Is 2024 the year of your dream home?

Is 2024 the year of your dream home?

There are good reasons to build your new home this year. 

If we had a crystal ball, we’d all build our new home at the optimal time, when interest rates are low, when there are plenty of tradesmen, no supply shortages and plenty of land to choose from. 

Playing the property game and working out when is the best time to build can tie you up in knots and get you nowhere. No one really knows – not even the experts! – so you’re not alone. But there are some general guidelines and considerations to take into account, and when you put it all together, it may well turn out that 2024 is the best year to build your new dream home!

Are you paying rent?

Traditionally, renting has been an affordable alternative to buying or building, but not anymore. A tight rental market has put the pressure on, and many people are finding that higher rent is actually more than paying a mortgage. So why pay someone else’s mortgage, when you could be paying off your own! A financial advisor or broker can help you do your sums, and you may be pleasantly surprised to find a mortgage on a new house and land package is more than comparable to paying rent. 

Saving money

Building a new home in 2024 could also save you money. Buying land and building a new home is a more realistic option than, say, buying an established home in an inner-city area. New homes also offer better value for money in that they don’t have the same maintenance costs of buying an older home. You also have the advantage of a home design you are happy with right from the get-go; you don’t have to adapt someone else’s dream home to suit your own. Either way, it’s important to evaluate your financial position and ability to secure financing, considering both present circumstances and potential future scenarios.

Consider the long term

Real estate is not about the here and now, it’s about the long term. To borrow an adage about trees, if the best time to build a home was last year, the second-best time is this year! Property starts helping you achieve your long-term goals from the moment you purchase your homesite block, so getting in sooner rather than later is important. Every mortgage payment is building equity in your new home. Property values are continuing to rise, making it an excellent long-term investment. While some people may be concerned about building in the current market, the statistics and predictions from Perth property analysts show the WA property market is showing strong signs for a positive year ahead. 

Speaking of price rises …

On the flipside, postponing building your new home carries the risk of further price rises, which can potentially offset any anticipated savings. Construction costs are likely to rise in the future, mainly due to rising energy costs pushing up the price of some construction materials. It is rare for construction prices to fall, so waiting could set you back. In addition, a shortage of skilled tradespeople will also likely worsen before it gets better.  

In summary, everyone’s situation is different, and you need to make decisions based on your personal circumstances, taking into account your financial situation, your family, your lifestyle and your goals.