Building a house involves countless decisions, but one of the biggest choices must be made well before the slab is poured \u2013 to build in an estate or an established suburb?<\/strong><\/p>\n Simon Pressley, head of property market research for Propertyology, says people building themselves a home have a different set of priorities to investors looking purely at the bottom line.<\/p>\n The key to making the right choice, he says, comes down to understanding the pros and cons of each and weighing them up, based on personal circumstances.<\/p>\n Building? It can be hard to work out which site will suit you best. Picture: Getty<\/p>\n<\/div>\n Generally speaking, land in an estate is cheaper than that in established, built-up suburbs, Pressley says, so affordability is the \u201cbiggest and most obvious\u201d advantage.<\/p>\n \u201cIt\u2019s simple; land on the fringes of the urban footprint of a larger centre is going to be more affordable than land close to the CBD, which is why estates appeal to buyers, especially first-home buyers,\u201d he says.<\/p>\n Estates also offer<\/a> a way to get a foothold on the property ladder.<\/p>\n \u201cFor some first-home buyers, an estate might be the only option and it\u2019s better than nothing. Some people decide to save their pennies, to try to get into an established suburb, but you may be forever chasing the market if you\u2019re not careful.\u201d<\/p>\n The set designs and \u201call-inclusive\u201d cost of building in an estate appeal to many, Pressley says.<\/p>\n \u201cAs long as you understand the fine print about additional costs, if something goes wrong with a build in an estate, generally speaking it\u2019s not your issue, which is a good position to be in.\u201d<\/p>\n The process of building in an estate is also streamlined, Pressley adds.<\/p>\n \u201cBuilding a home can involve what seems like thousands of decisions when it comes to design, fittings and fixtures, which some people like and some people don\u2019t. In an estate, you\u2019re tapping into the expertise of the developer to get the house you want.\u201d<\/p>\n Many new estates focus on providing open space and \u201cgreen\u201d design, Pressley says.<\/p>\n He says for those who value open space, a master-planned estate can be more enticing than a cramped suburb.<\/p>\n Many new estates build parks and other recreational areas for residents. Picture: Getty<\/p>\n<\/div>\n The large playgrounds and man-made lakes often included in modern estates are hard to find in established areas, he adds.<\/p>\n \u201cWhen you look at something like using solar power, it can be very complex to understand yourself, but some estates approach this now, where every dwelling in the estate benefits from green technology.\u201d<\/p>\n If buyers hit the \u201csweet spot\u201d of a quality estate that\u2019s accessible to employment options, in an appealing, affordable area, there is potential for future price growth \u2013 the holy grail of real estate<\/a>.<\/p>\n Pressley says buyers need to understand the effect supply has on property values though.<\/p>\n With most new estates on the urban fringe, proximity to employment options, schools, sporting grounds, amenities, shopping centres and other facilities can be an issue, Pressley says.<\/p>\n \u201cDistance to employment options is a big one. If there are no major employers nearby, who might want to buy the property in the future?\u201d he asks.<\/p>\n \u201cWith things like shopping centres, the developer may promote a major supermarket will be built, but you need to consider when this will happen and if this is even where you want to shop. You need a range of amenities close by, it\u2019s essential,\u201d Pressley says.<\/p>\n Builder search: Find the right builder\u00a0<\/strong><\/p>\n \u201cGiven that supply is a growth suppressant, you need to realise that if there\u2019s lots of other available land around an estate, more land will be developed, and that will impact prices, so looking closely at supply is vital,\u201d Pressley says.<\/p>\n \u201cNo matter which part of the country you\u2019re in, you want a healthy construction industry and things happening in your area, as that creates jobs and keeps cash registers ringing, but there is a tipping point when you hit oversupply.\u201d<\/p>\n Properties within an estate often look similar. Picture: Getty<\/p>\n<\/div>\n Estates are often accused of being boring, design-wise.<\/p>\n Pressley says while buyers like the \u201cwork being taken out of the process\u201d by picking from set house designs, it can lead<\/a> to many similar properties in close proximity. This, in turn, can make it hard to differentiate a property when it comes time to sell.<\/p>\n \u201cYou really need to do your due diligence on the developer and the building company building your house in an estate,\u201d Pressley says.<\/p>\n Don\u2019t fall in love with an estate without running a ruler over all parties involved, he says.<\/p>\n \u201cIn an established suburb, you have evidence of value all around you. You can directly compare what you are planning to build to what similar properties nearby are worth. That\u2019s invaluable,\u201d Pressley says.<\/p>\n \u201cIt essentially means you can ensure you don\u2019t over-capitalise when you build a house. You know what it\u2019s going to be worth \u2013 and also what the potential for growth is, because you have historical data to draw on,\u201d he adds.<\/p>\n Buyers value being close to shops, transport and other lifestyle amenities. Picture: realestate.com.au<\/p>\n<\/div>\n Established suburbs come ready-made with existing employment hubs and amenities, making a future life easy to plan for. It also creates a ready pool of potential buyers.<\/p>\n \u201cObviously when you\u2019re building a single house on a block in an established suburb you have full control of the product. You don\u2019t have to deal with a developer or estate rules,\u201d Pressley says.<\/p>\n \u201cThe cost of buying into an established suburb is obviously the biggest con,\u201d Pressley says.<\/p>\n In an established area, buyers often have to knock down an existing property to build new too, adding extra cost and complexity, he says.<\/p>\n In an established area, site and town planning challenges can be many and varied and cost time and money, Pressley says.<\/p>\n \u201cIn an estate, a developer has the hassle of dealing with all the day-to-day hassles,\u201d he says.<\/p>\n \u201cThey deal with getting plans approved by council, with sewerage, power lines, if a crane is needed, if a street needs to be closed for the crane to get access, getting permission for that and so on. Even if you palm off this responsibility to someone else, you still ultimately end up having to deal with it and it can be a pain,\u201d he says.<\/p>\n Costs can quickly add up for a build in an established area. Picture: Getty Images<\/p>\n<\/div>\n In an estate, there is a \u201cclean slate\u201d to work on, Pressley adds. There can often also be more constraints on design too.<\/p>\n \u201cEach neighbourhood has its own rules around character and any new home in an established suburb has to fit within that.\u201d<\/p>\n \u201cThere is always greater potential for cost blow-outs in an established area,\u201d Pressley says.<\/p>\n \u201cThings are not so clean cut with costs when you\u2019re on your own.\u201d<\/p>\n Whether it\u2019s access to services, finding unexpected nasties on-site, late design changes or compromises forced by town planning, additional costs can quickly add up.<\/p>\n \u201cAnd it all comes down to you.\u201d<\/p>\n
\n <\/p><\/div>\n Realestate au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The pros of building in an estate: Affordability<\/h2>\n
![\"New](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/28130114\/builder_house_getty_a-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nSet cost & streamlined process<\/h2>\n
Open space & green credentials<\/h2>\n
![\"Parks.](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/28130127\/estate_park_getty_a-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nPrice growth<\/h2>\n
The cons of building in an estate: Distance<\/span><\/h2>\n
Oversupply & the bottom line<\/h2>\n
Homogeneous homes<\/h2>\n
![\"Builder.](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/28130109\/builder_couple_getty_a-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nDue diligence required<\/h2>\n
The pros of b<\/span>uilding in an established suburb: Existing value<\/h2>\n
Proximity to employment & amenities<\/h2>\n
![\"Cafe\"](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2016\/07\/11102742\/south_yarra_cafe_article-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nControl<\/h2>\n
The cons of b<\/span>uilding in an established suburb: Cost<\/h2>\n
Site & town planning challenges<\/h2>\n
![\"installing](\"https:\/\/i0.wp.com\/www.realestate.com.au\/blog\/wp-content\/uploads\/2017\/06\/27115815\/installing-kitchen_2000x1500-1024x768.jpg?resize=1024%2C768&ssl=1\")
<\/p>\nBudget blow-outs<\/h2>\n