Key takeaways
- New homes in growth areas can unlock the $15,000 grant and full stamp duty relief. Established homes get neither.
- Middle-ring established suburbs trade those savings for location, land and established amenity.
- Lenders assess the property as well as you. Small units, some high-density apartments and unusual properties can face tighter lending.
- The federal 5% Deposit Scheme cap is $900,000 in Adelaide and $500,000 elsewhere in SA.
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New or established: the first decision
In most states the suburb choice is mainly about lifestyle and price. In South Australia it also decides how much government help you get. First home buyers purchasing or building a new home can receive the $15,000 First Home Owner Grant and pay no stamp duty. Buying established, neither applies. See SA first home buyer grants and stamp duty.
That's why many Adelaide first home buyers look at house-and-land and new townhouse developments in the northern and southern growth corridors, and in infill projects closer to the city. Others choose an established home in a suburb they know, and accept paying duty for the location, the land and the established streets.
What to compare between suburbs
- Total cost to buy. Price, stamp duty, grant eligibility and inspection costs together, not just the listing price.
- Commute and transport. Train and O-Bahn access, and traffic on the main arterials at peak times.
- Land and building type. A house on its own block, a townhouse with a strata or community title, or an apartment. Each affects running costs and future value.
- Schools and zoning, if relevant to you now or in the next few years.
- Future development. New infrastructure can add value; large amounts of new supply nearby can slow price growth.
How do lenders view different properties?
Lenders assess the security as well as the borrower. Standard houses and townhouses are straightforward. Small apartments below a certain size, some high-density or serviced apartments, and properties with unusual zoning or title can face lower maximum loan-to-value ratios or be declined by some lenders. If you're looking at anything outside the ordinary, check with us before you sign. See when the valuation comes in low.
Building in a new estate
Building means a land contract, a building contract and a construction loan that pays the builder in stages. Grants are paid at a building stage. Allow for site costs, driveways, fencing and landscaping, which aren't always in the base price. See construction loans, from slab to keys.
Buying established
Established homes let you see exactly what you're getting, often on more land and in suburbs with mature amenity. Get a building and pest inspection, budget for stamp duty and repairs, and use the federal 5% Deposit Scheme if you're short of 20%. See building and pest inspections.
Get pre-approved before you shortlist
Knowing your real borrowing range narrows the suburbs worth your time. It also tells you whether the federal scheme cap or the new-home concessions change the maths. See pre-approval, properly explained.
Run the numbers on new vs established
We'll compare the total cost of your shortlisted options, including grants and stamp duty, and get you pre-approved.
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Frequently asked questions
Do I get the grant if I buy a house and land package?
Usually, yes, if you meet the eligibility criteria and the home is new. The grant is paid at a building stage or settlement.
Do lenders treat apartments differently?
Some do. Small or high-density apartments may have lower maximum lending ratios or fewer lenders willing to finance them.
Is an established home a worse deal for first home buyers?
Not necessarily. You pay stamp duty and don't get the grant, but you may get more land or a better location. It depends on your priorities.
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This guide is general information only and does not take your personal circumstances into account. It is not financial, credit, tax or legal advice. Examples are illustrative only. Government schemes, lender policies and rates change over time and eligibility criteria apply. Speak with us for advice tailored to your situation. LendQuest Pty Ltd is a credit representative (555514) of BLSSA Pty Ltd, Australian Credit Licence 391237.