To Build or to buy established?

Hello

We are still on the quest to buy a second property as our PPOR. The area of Perth we are looking in has established homes of 3 or 4 bedroom ranging from 5 – 20 years old as well as some new land developments. We intend to live there for 5 years before purchasing our 3rd property.

We can spend up to 200K on either but will get a larger block if we buy an older established home and with a family of 4 plus pets we would like a decent size garden. However, I really want to approach this purchase with the investment in mind. It is easy to get lulled into the new home dream when looking at display homes. But it is also easy to see the established home as the easy option. We currently rent but may move into the current IP to do some renovations while building the new place so considerations of when the home will be ready are not too big a part of the equation.

The kind of input I am looking for is:

How long do you need to own a new home compared to an established home before you can expect any capital growth?

I’ve done lots of sums but I’m afraid I am missing important info.

Which option do you think is more costly up front?

What are the hidden costs in building a new home?

Any input is greatly appreciated.

Caz