New vs established homes: Which is better for Melbourne buyers?

Buying a home is one of the biggest decisions you'll make—and one of the first questions you'll face is: should you go for a brand-new build or choose an established property? Each option has its own pros and cons, and the right choice depends on your lifestyle, goals, and budget.

To better understand the key differences, chat with us today, we’ll help you make a confident choice.

Recent research from the Housing Industry Association (HIA) shows that interest in new homes is on the rise, with sales of new detached homes jumping nearly 19% in the three months to June 2025. So, what’s driving this trend—and is buying new the right move for you?

The benefits of buying new

1) Less maintenance hassles

New homes are built to modern standards, so you’re less likely to face repair bills in the early years. Plus, if something does go wrong, warranties often cover it.

2) Energy efficiency

New builds must meet energy efficiency standards, which means lower power bills and a more comfortable home. It’s also a win for the environment.

3) Customisation options

Want timber floors, natural stone benchtops, or bold wallpaper? With a new build, you can often choose finishes and layouts that suit your style. Renovating an older home to get the same look can be expensive and time-consuming.

4) Tax benefits for investors

If you're buying as an investor, new homes may offer depreciation benefits—meaning you could claim tax deductions for wear and tear over time.

The disadvantages of buying new

1) Building can be stressful

Unlike buying an established home where you can move in straight away, building a new home can involve delays, budget blowouts, and council approval headaches.

2) Location trade-offs

New homes are often built in newer suburbs, which might not have the same charm, community feel, or infrastructure as older areas. Also, capital growth can be slower in areas with lots of new housing supply.

Other things to keep in mind

Government incentives

Grants like the First Home Owner Grant may be available if you’re buying or building new. Stamp duty concessions can also apply to both new and established homes—but the rules vary by state and territory, so it’s worth checking what’s available in your area.

Need help navigating your options?

Whether you're trying to understand your borrowing power, looking into government incentives, or need help with pre-approval, FinancePath is here to help. We’ll walk you through the finance side of things and help you get into your own home sooner.

Get in touch today and let’s chat about what’s right for you.