Tips for building a new home

Home ownership achievable with Berstan Homes

Mark Bryson - Tuesday, February 21, 2017

Are you in your thirties with a family and still renting? Do you feel home ownership is out of your grasp because of the current high price of houses?

It is possible to save money when entering the home market by choosing a new home build in Melbourne.

You get exactly what you want with a brand-new house by Berstan Homes. There is also a substantial saving on stamp duty when you buy land rather than an existing house. First home buyers can also get a Government grant towards the purchase.

Australia still has a high percentage of home ownership compared to Europe, with 69% of Australians owning their own homes.

However, the inflated real estate market of recent years has caused ownership to reduce. Sixty-six percent of Victorians now own their own homes, a drop from 74% in 2001. That’s still higher than NSW and Queensland but it’s a worrying trend.

There are Government incentives to encourage first home buyers to build, thus increasing the housing stock, rather than buy an existing home.

The Government gives first home buyers a one-off $10,000 grant providing the house is a new build. Berstan Homes immediately takes this off the list price of any home under $750,000 if the buyer is eligible.

Stamp duty, or land transfer duty as it is now known, is only payable on vacant land and existing houses, not on new, custom-built houses.

“If you buy a house for $700,000, stamp duty is another $40,000 on top,” Berstan Homes director Mark Bryson says, “However, on a $400,000 block of land, stamp duty is only $16,000. Add $300,000 for the house, which attracts no stamp duty, and you’ve saved a considerable amount compared to an existing home.”

If you are a first home buyer, there is a 50% reduction on stamp duty for new home builds and vacant land purchases. This means the duty on a $400,000 block of land drops to $8000 and you may still be eligible for the New Home Owners Grant of $10,000.

Berstan Homes can build the home of your choice - all you need to do is find the land. This may be in a new housing estate or perhaps a subdivided backyard in an established suburb. You may even want to buy an existing house and do a knockdown rebuild.

Or if you like your neighbourhood and suburb, but your home is getting old and tired, you could stay where you are, but get a brand-new home with a knockdown rebuild of your own home.

Whether you have your own plans or want to use one of our numerous styles and designs, Berstan can build it for you. Berstan also offers a customised plan drafting service to design that perfect home that will suit you and your land.



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