Last updated: July 2026
New Build vs Established Home: What First Home Buyers Should Know
New builds and established homes have different scheme eligibility, costs, and trade-offs. For first home buyers specifically, the choice can mean tens of thousands of dollars in government assistance. Here is what matters and how each option stacks up.
Scheme Differences at a Glance
| Scheme | New Build | Established Home |
|---|---|---|
| FHOG (grants) | $10k to $50k in most states | Not available in any state or territory |
| Help to Buy equity | 40% government share | 30% government share |
| Stamp duty | Many states exempt new builds with generous caps | Lower thresholds in most states |
| FHBG | Eligible (5% deposit, no LMI) | Eligible (5% deposit, no LMI) |
| FHSS | Eligible | Eligible |
New builds unlock significantly more government support. The difference can be $30,000 or more in grants alone, plus better stamp duty treatment.
Financial Comparison: Queensland Example
Here is a side-by-side look at buying a $650,000 property in Queensland, using the same buyer profile:
New $650k House and Land (QLD)
- FHOG: $30,000
- Stamp duty: $0 (QLD FHB concession)
- LMI saved via FHBG: ~$12,968
- Total benefit: ~$42,968
Established $650k House (QLD)
- FHOG: $0 (new builds only)
- Stamp duty: $0 (under $700k threshold)
- LMI saved via FHBG: ~$12,968
- Total benefit: ~$12,968
The new build buyer receives $30,000 more in government assistance in this example. That is a significant difference and could represent years of additional saving. Queensland's $30,000 FHOG was extended a further four years in the 2026-27 Queensland Budget and continues for eligible contracts signed from 1 July 2026.
Pros of Buying New
- Higher FHOG grants in every state that offers them
- Better stamp duty concessions and exemptions
- Help to Buy provides 40% equity (vs 30% for established)
- Modern building standards, energy efficiency, and warranties
- Lower maintenance costs in the early years
- Builder structural warranties (typically 6 years)
- You can customise layout, fixtures, and finishes
Pros of Buying Established
- Established locations, often closer to the city, transport, and amenities
- Known neighbourhood: you can walk the streets, talk to neighbours, check the vibe
- Immediate move-in with no construction delays
- Often better value per square metre, especially in inner suburbs
- Character, charm, and mature gardens
- No construction risk, builder insolvency, or cost overruns
Construction Risks to Consider
If you are leaning towards a new build, factor in these realities:
- Build timelines of 12 to 24 months are common, and delays can push beyond that
- You will need to pay rent while your home is being built, adding significant cost
- Builder insolvency is a real risk: check your state's building authority register before signing
- Cost overruns can occur if your contract has provisional sums or allowances rather than fixed prices
- The final product may differ from display homes or marketing materials
How to Decide
If maximising government assistance is your priority, new builds generally offer more support. The combination of FHOG grants, better stamp duty treatment, and higher Help to Buy equity shares can deliver tens of thousands more in benefits.
If location and immediate move-in matter more to you, established homes are the practical choice. You still qualify for FHBG, FHSS, stamp duty concessions, and Help to Buy (at the 30% rate).
Use our wizard to see the exact dollar difference for your situation, including all the schemes you qualify for in your state.
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Frequently Asked Questions
Do I get more government assistance for a new build?
Yes. In every state, new builds receive significantly more government support. FHOG grants ($10,000 to $50,000) are almost exclusively for new builds, Help to Buy offers 40% equity for new (vs 30% established), and many states offer better stamp duty concessions for new construction.
What counts as a new build for FHOG purposes?
Generally, a new build includes a newly constructed home that has not been previously lived in, a home built to replace a demolished dwelling, or a substantially renovated home. House-and-land packages where you contract to build a new home also qualify. The exact definition varies by state.
Is a house-and-land package better than buying established?
From a scheme eligibility perspective, house-and-land packages are treated as new builds and qualify for FHOG grants and better concessions. However, they involve construction timelines (12 to 24 months), builder risk, and you will need somewhere to live during the build.
Can I buy an established home and still get government help?
Yes. You can still access FHBG (5% deposit, no LMI), FHSS (tax-advantaged deposit), stamp duty concessions (most states offer some for established), and Help to Buy (30% equity share). You just miss out on the larger FHOG grants, which are almost exclusively for new builds.
Sources: QLD Government: FHOG | Housing Australia: Help to Buy | Housing Australia: FHBG
Disclaimer: This information is general in nature and does not constitute financial, legal, or tax advice. Calculations are estimates only and may not reflect your exact circumstances. Eligibility criteria and dollar amounts may change without notice. Always verify with the relevant government authority, your mortgage broker, or a licensed financial adviser before making decisions.