Building or Buying: Why Kit Homes are a Smart Investment

When deciding between building or buying a home, there is a lot to consider. At the end of the day, this is a highly individualised decision that will be based on a number of different factors.

To make the decision making process easier, it’s important to be informed. This involves understanding any relevant benefits of building while also analysing the inherent aspects of building and buying. Only then can you make the right decision for you and your family.

Things to consider when buying or building

By breaking the building and buying process down, key aspects of each become apparent. That’s why it’s important to ask yourself a few questions before making any final decisions. The answers to those questions will go a long way to helping you make the right decision.

Purpose of the property

Are you looking for a home where your family is free to grow? Perhaps you’re interested in a home that will boost income in the form of an investment property. In both cases, building a home may be the right decision.

A Kitome kit home is customisable and will provide the perfect backdrop for your life. A kit home also comes complete with great finishes, helping investors return a higher yield in an environment where renters are inherently hard to please.


Where you want to live will impact whether or not you end up building or buying a home. The area you are looking to build in could have strict guidelines governing the style of dwelling that can be built there and these guidelines may differ from your ideal home vision. There may even be land shortages. If this is the case, you will have to buy.

If your desired address is in a market segment where it is cheaper to buy land and then build a home, then you are better off acquiring the land for a reasonable price and then building your dream kit home.


Lifestyle factors play a role in whether you choose to build or buy. For example, those leading a busy life might prefer the convenience of an established home. While those with specific needs may find constructing a home from scratch to be more beneficial. This option has the added benefit of being able to create room/spaces that fit in with your lifestyle, think space to park the boat or jet ski, workshop in the garage, craft room with good natural lighting. Building your own home means you have a home that works with your lifestyle, not a home that you have to bend to fit your lifestyle.


In comparison to buying a home, kit homes are generally more cost effective. Therefore, those who have strict budgets may prefer the security that a cost effective option like building a kit home can provide.

Benefits of building a kit home

There are many short and long term benefits to enjoy when building a kit home. Some of those short term benefits include:

  • Kit homes are cost effective when compared to a general house build. In particular, discounts that Kitome receive as a bulk-buyer of materials are then passed along to clients.
  • They are fully customisable, with a range of different options available.
  • They provide a smaller ‘footprint’ during the manufacturing and building process due to the materials all being prepared by a single supplier, instead of the hundreds and potentially even thousands of manufacturing partners and delivery methods that would occur for a general house build.

Kit homes are a smart investment for those wanting to design their dream home, within a budget.


Building a kit home with Kitome affords you the ability to completely customise your residence. This means that you alone get to decide how many bedrooms, bathrooms and miscellaneous areas comprise your home.

Energy efficient

Kit homes can be created to be extremely energy efficient. You can work with the Kitome design team to ensure your new home uses its orientation to take full advantage of the natural light and air flow which can drastically affect the reliance on electricity when heating and cooling your home. Good insulation and quality windows along with some clever passive solar design can definitely help make your home as energy efficient as it can be.

Investment grants

Building a kit home can provide access to government and investment grants. Whether it be state specific First Home Owner Grants, a 4% Building Allowance and stamp duty deductions, grants associated with kit homes can reduce the overall cost considerably.

Avoid bidding wars

Buying a house is a time consuming process. There are open for inspections and auctions to attend. This all results in a competitive atmosphere where buyers drive the cost of the home up through a bidding war. When buying land, there is generally less competition.

Speed of construction

Whilst the amount of time it takes to construct your home ultimately depends on the builder and the contracted trades, the ability to have all the required materials delivered directly to site when they are needed will greatly reduce build time. Sourcing materials, organising and receiving multiple deliveries from multiple suppliers, and those last minute trips to the hardware to pick up extra roofing sheets because you underestimated the amount needed. All these things can add time to the build, and time = money. Kitome can take care of all the logistics so your builder can concentrate on building.

Tips to avoid common kit home mistakes

When it comes to designing and building a kit home, mistakes can be made along the way. In order to avoid mistakes, stay on budget and build the home of your dreams, there are simple tips you can implement.

Firstly, to stay on budget, don’t finalise any plans until all site requirements are known. Otherwise, you could be paying extra costs for accessibility and earthworks that simply weren’t accounted for. Kitome now offers a specialised service which allows for more accurate budget predictions for your custom home build, even when using a third party construction company.

When it comes to staying on schedule, think about the flow of the building process realistically. Schedule trades accordingly so that money and time is not wasted on resources who can’t work on an area of the home because it hasn’t been finished yet.

Finally, make sure you have planned out the position and orientation of your kit home. Don’t just place it in the centre of the block of land. Think about views, accessibility and getting the orientation right to take advantage of winter sun and cooling summer breezes.

Snapshot of the building process

When looking to successfully build a kit home, there are a traditional set of steps that should be followed. These steps include:

  • Secure a mortgage- you may need up to a 25% deposit for a self-build. Smart investors may want to borrow an additional 10% to cover any emergencies.
  • Find the block of land- when building a home, everything hinges on the block of land. You can’t start designing and budgeting unless you’ve found the land.
  • Get planning permission- local authorities will require builders to obtain permission in the form of a detailed application. Without permission no work can commence.
  • Design the home- no construction can commence without plans. Take the time to understand your wants and needs and design the home accordingly.
  • Choose trades- check references and accreditation of trades before employing the most trustworthy.
  • Obtain insurance- for those planning to self-build, insurance is needed as you could be liable for any injuries that occur on site.
  • Start the build- once everything is in place, you can confidently start the build.

Start designing today

When it comes to deciding between buying or building a home, it can be stressful. However, by taking the time to research the buying and building process, you will be well placed to make the right decision for you and your family.

Try to think of the bigger picture, not just the short term. Because while it may seem easier to buy a home now, later you may regret not taking the time to build a home to your exact specifications and needs. A kit home is always going to be a sound investment.

Whether you’re looking for design inspiration or a kit home company that will guide you every step of the way, look no further. Because when it comes to designing your ideal home with Kitome, anything is possible.

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