My partner and I are stuck between two big decisions and would love some outside opinions from people who’ve been through similar situations.
Option 1:
We’ve put down interest on a block of land in a really popular/growing area in NSW for close to $750k. The issue is the land won’t register for around another 1.5 years, so we’d basically be waiting that whole time before even starting the build. We’ve already been quoted around $500k for the house we want now, but we’re worried build prices could increase a lot by the time the land is actually ready.
The upside is we’d end up with a brand new home in a sought-after area, but it also feels risky committing to such a large amount now with so much uncertainty around future construction costs, interest rates, and the market.
Option 2:
Instead of committing to the land, we could continue saving and potentially build on family-owned land in about a year’s time. This would obviously save us a huge amount financially and probably reduce stress, and it is close to the land that we are intersted in. We wonder if we’d regret passing up the opportunity to buy into this market now.
For context:
- Land price: ~$750k
- Build estimate currently: ~$500k
- Land registration: ~18 months away
- We are pre-approved, but trying to think long term and not overextend ourselves.
Would you take the risk and secure the land now, or play it safer and build later on family land? Especially interested in hearing from anyone who has dealt with delayed land registration or rising build costs.