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Buying an existing home

Even with all the incentives, there are many who prefer to stick to buying an existing home as, for them, the worry of buying something before it is built is just too much.

"The walls are up, it's finished - you take it as it is," says Pizzolato. "And you don't have the hassles of getting approvals or working over construction issues with the builder."

After all, you can buy an existing home and still take full advantage of the grant and boost. As long as the property is new

• that is, nobody has lived in it since it was either built or significantly renovated
• the buyer qualifies for the whole grant.

However, for those with a preference for an existing previously occupied home, the decision makes it a bit tougher financially. As stated earlier, choosing new over existing can gain first homebuyers between $7,000 and $10,000 in the government boost, making the option more enticing.

That's simple maths, but the reason one might still prefer an existing, previously occupied home is that the property value might be more favourable in the future. For example, if you buy land and build a house in some distant suburb and the value of the property stays flat - or even drops - over the next few years until you decide to sell, it's possible that the savings made on the grant would be cancelled out compared to an existing home elsewhere.

Still undecided whether to buy a new home over an existing dwelling? Turn to page 38 for an in-depth analysis of the merits and disadvantages of the options.