By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

There’s a stubborn belief in the first home buyer market: that established homes are cheaper to buy than new builds. The instinct comes from looking at the sticker price — a $900,000 1980s brick-and-tile in Logan looks cheaper than a $1,000,000 brand-new four-bedroom on a 400-square-metre block in Ripley. But the sticker price isn’t what you pay to walk in the door, and the real comparison flips the conventional wisdom completely. At Low Deposit Homes we run this comparison on every discovery call. A new build in 2026 typically requires around $54,500 in upfront cash. The same-priced established home requires around $122,000. That’s a $67,500 gap — and it’s the difference between buying now and waiting another five years.

What’s the Real Difference Between New Build and Established Costs?

For a $1,000,000 property in metropolitan Queensland — straight from the bank’s funding worksheet:

For a $750,000 property in Melbourne’s north (Craigieburn, Mickleham), the same comparison shows $109,000 established versus $30,000 new build — a $79,000 gap. For an $800,000 property in South East Melbourne (Pakenham, Cranbourne), the gap is $115,000 versus $42,000 = $73,000.

This isn’t a marketing number — it’s the maths that comes out of the bank’s funding worksheet every time we sit down with a first home buyer. The gap is real because new builds access grants that established homes don’t.

Why Is the Established Home So Much More Expensive Upfront?

Three costs hit established home buyers that new build buyers avoid:

Stamp duty ($30,850 on a $1M established home in QLD). A first home buyer purchasing a $1M established home in Queensland pays around $30,850 in stamp duty (transfer duty). The same property as a brand-new build qualifies for the full first home buyer new build exemption, reducing it to zero. The saving versus standard transfer duty rates (with no FHB concession) is closer to $38,000.

Lenders Mortgage Insurance ($34,594 on a $1M property). If you put down less than 20%, lenders charge LMI to protect themselves against your default risk. On a $1M established property under standard FHB financing, LMI is typically $30,000–$45,000 added to the loan. Under the 5% Deposit Scheme on a new build, LMI is eliminated entirely.

The bigger deposit itself. Without the 5% Deposit Scheme, lenders typically require 10% minimum — twice the deposit needed under the scheme.

What About Ongoing Costs?

The upfront comparison is half the story. An established home also carries ongoing costs that new builds don’t:

• Roof replacement: $15,000–$30,000 (typically every 25–30 years)
• Hot water system replacement: $1,500–$3,500
• Air conditioning: $5,000–$10,000
• Kitchen renovation: $20,000–$50,000
• Bathroom renovation: $15,000–$30,000 each
• Re-wiring (older homes): $10,000–$20,000
• Re-stumping or foundation work (older homes): $15,000–$40,000

A 1980s brick-and-tile that “just needs a bit of paint” rarely just needs a bit of paint. A buyer who sinks $20,000–$30,000 a year into maintenance for the first five years has effectively paid more for the established home than they would have for a new build with full grant access.

A new build comes with statutory builder warranties (QBCC Home Warranty Scheme in QLD; Domestic Building Insurance in VIC), no immediate maintenance needs for the first 5–10 years, and modern energy efficiency that lowers running costs.

“I tell every client this: the difference between buying poor and buying great is about $100K. And buying poor — a cheap fibro that needs $25K–$30K a year in maintenance — actually costs more than a turnkey new build at the same price. Cheap is expensive.” — Chaice Paterson, founder of Low Deposit Homes

What About Depreciation Deductions?

If you ever convert your first home to an investment property — a common Low Deposit Homes client strategy — a brand-new build delivers significantly more tax benefit than an established one.

For a buyer earning $150,000+, a new $1M build can deliver $15,000+ per year in depreciation deductions (declining over time). The same property as an established home delivers a fraction of that. Over a 10-year hold, the difference can exceed $80,000 in tax savings.

This is why several of our recent clients with strong incomes have redirected from established to new build once we’ve shown them the depreciation maths.

“But I Want a Renovator’s Project”

This comes up regularly. In our experience, buyers who say they want a renovator divide into two camps:

1. Genuine renovators with trade backgrounds, time, and cash reserves who’ll add real value through their own work.
2. Aspirational renovators who underestimate cost, time, and disruption — and end up with a partially-finished home and significant debt.

If you’re in camp 1, established can make sense. If you’re in camp 2 — which is most first home buyers — a new build delivers a better lifestyle outcome and a stronger financial position.

What About Capital Growth?

A common counter-argument: established inner-suburb homes grow in value faster than new builds in outer corridors. Sometimes true. But:

• The buyer with $54,500 cash can buy a new build today. The buyer who needs $122,000 has to wait 3–5 more years to save the gap, during which the inner-suburb home keeps appreciating away from them.
• Quality growth corridors (Ripley, Pakenham, Craigieburn, Werribee) have demonstrated strong long-term capital growth, particularly during major infrastructure rollouts.
• Owning is owning. The fastest-growing equity is the equity you actually own.

What About the Land Wait Time?

Real consideration: a new build in 2026 typically takes 8–14 months from contract to handover, depending on whether the lot is titled or untitled. An established home settles in 30–60 days.

Two things to understand:

• Many lots are now titled. The QLD and VIC growth corridors offer significantly more titled options than they did two years ago. Titled lots deliver settlement within 30–60 days of contract and total timelines of 8–10 months from first call to keys.
• The wait is an advantage. While you wait, you’re typically still renting — and you continue saving. Many clients add another $15K–$25K to their offset by handover.

What’s Actually Included in a Turnkey New Build?

A genuinely turnkey new build under a fixed-price contract includes:

• Land (registered, fenced, ready)
• Slab, frame, roof, lock-up
• All internal fit-out (kitchen, bathrooms, flooring, paint)
• Stone benchtops, dishwasher, electric cooktop
• Window furnishings (blinds/curtains)
• Driveway, paths, landscaping
• Air conditioning to main living and master bedroom
• Solar-ready electrical
• Statutory builder warranties

Beware of “from $XXX” pricing on builder websites. The “from” price typically excludes site costs, landscaping, driveway, fencing, flooring, and AC — items totalling $30K–$60K. Fixed-price turnkey is the only contract structure that protects you. We exclusively work with fixed-price builders.

Frequently Asked Questions

Is a new build really cheaper than an established home?

For first home buyers, yes — in terms of upfront cash. A $1M new build in QLD typically requires around $54,500 versus around $122,000 for an established home of the same value. The difference comes from the 5% Deposit Scheme (no LMI) and the new build stamp duty exemption.

What about the land wait time on a new build?

A new build takes 8–14 months from contract to handover in 2026 — significantly faster than was typical even two years ago because the QLD and VIC growth corridors now have substantially more titled land available. Titled lots settle within 30–60 days of contract. Untitled lots settle within 6 months. You typically continue renting during this period — but you also continue saving, often building your offset account by $15K–$25K before handover.

Do new builds hold their value?

Yes, when they’re in genuine growth corridors with strong owner-occupier demand. We deliberately avoid investor-heavy estates where cookie-cutter homes and high investor concentration can suppress capital growth. Owner-occupier corridors like Ripley, Springfield, Pakenham, and Craigieburn have demonstrated solid long-term capital growth.

Is a house and land package fully turnkey?

It should be — but only under a genuine fixed-price turnkey contract. The “from $XXX” pricing on most builder websites is misleading and excludes site costs, fencing, driveway, landscaping, and AC. We exclusively place clients on fixed-price, turnkey contracts where the price you see is the price you pay.

What’s included in a turnkey package?

A turnkey package includes land, slab, frame, full build, kitchen and bathroom fit-out, flooring, paint, window furnishings, driveway, fencing, basic landscaping, and air conditioning. It does NOT include personal items (furniture) or premium upgrades unless specifically contracted. The standard package walks you in to a complete, livable home.

Ready to See the Real Numbers?

Book a free 15-minute consultation with Low Deposit Homes — Book your free call | Call 1800 920 172

We’ll show you the funding worksheet — established versus new build — on YOUR target price point. Twenty minutes, no obligation, and you’ll see exactly what $67,500 of savings actually looks like.

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All deposit calculations are indicative and based on general scenarios. Individual circumstances may vary. Government grant eligibility is subject to assessment by the relevant authority. This guide is for informational purposes and does not constitute financial advice.