If you’ve been working hard for years to save up enough money to get into the property market, you might be keen to get out there now and make your dreams a reality.
However, before you commit to a path, it pays to evaluate whether you should buy an established property or build your own home builder.
Timeframes
If you need a new place to live quickly, you’ll obviously want to focus on buying a home rather than building one. Those on a tight schedule won’t be able to wait around for the six to 12 months, or even longer at times that it takes to get a house built from scratch.
If you’re relocating to an area, have kids starting a new school, have a deadline to exit a current property, or otherwise need to move within a set time, your best bet will be purchasing an abode. If time is no issue, though, you may find that building works out nicely.
Convenience and Stress
Similarly, think about how much convenience you need and the level of stress you can handle when deciding whether to buy or build. An existing home will be the better option if you want to live in a certain area (where available blocks of land may not be easily found) and don’t want to deal with tradespeople in your home finishing off tasks.
Similarly, if you buy a place that’s already done, you won’t have to worry about starting a new lawn and doing other landscaping that comes with a brand new site. Building from scratch can be stressful, too, since you have to not only purchase the land and pick out a home design and builder but also select all the design elements, fittings and fixtures, etc.
Managing the long list of details that come with building a house takes significant time and energy. It can be stressful as a result, especially if you’ve never dealt with this kind of process before or don’t have strong aesthetic opinions.
Cost
Cost is always one of the top factors when it comes to investing in property. However, there’s no simple answer as to which costs more, an already-established home or a newly-built one, since it depends on many factors. It’s often more affordable to buy an existing home upfront, especially if it needs some work that you can do yourself.
Upgrades to new homes can quickly drive prices up much higher than you had planned if not included in your contract with a builder. However, there are benefits to be had from building, too, such as warranties, longevity on appliances, sustainability, power savings, etc. Building costs vary according to the location you’re considering, too, so it may be more affordable in the place where you live.
Also Read: A First Time Buyers Guide to Buying a House
Another factor to keep in mind is that if you’re planning to renovate an established home, remodeling work often goes well over budget. You don’t know if you’ll come across costly yet unseen issues, such as asbestos, the need for new plumbing or wiring, and so on.
Mortgage Availability
Related to cost is the idea of mortgage availability. You need to understand that different banks and other financial institutions may have different rules regarding home loans for already-built properties versus those created from scratch. It might be easier and cheaper to get a loan to buy a home than build one, as a result.
However, do take the time to research this side of things. Check out the terms and conditions of different organizations to see what they do and don’t offer. Search online for “mortgage brokers Charlottesville, VA,” or “home loan information in Portland,”etc., for ideas of lenders in your area and their terms and conditions.
Customization and Satisfaction
A reason why you might prefer to build a home over buying one is the idea of customization. When you create a property from the very beginning, you can choose exactly how you want it to be laid out, how many bedrooms and bathrooms, and the orientation to the sun.
You can choose all the flooring, appliances, and other fixtures and fittings, too, and generally make everything work to your personal specifications. If this is important to you, it may be wise to consider building rather than buying.
Furthermore, if you’re looking to get a high level of satisfaction and an emotional connection with your property, building can give you this. When you design a home and put your heart and soul into it, you will generally feel prouder of it and more excited by it than you would if buying an already completed house.
As you can see, there’s no simple right or wrong answer to whether to buy or build, since it depends on your circumstances and preferences and many other factors. Weigh up the pros and cons of each option and take your time deciding, so you go down the path that’s best for you.
