Should I Build or Buy?

Buying a house comes with many advantages and disadvantages, but so does building one from scratch. The good will outweigh the bad for some home buyers, whereas for other buyers it could be just what they are looking for. In this article, let’s consider the pros and cons of both options and see what works with your preferences.

 

BUILDING A HOME

Pros

• You and your family will be the first to experience the space. Everything will be new and you will get the satisfaction of using your newly built home in the way you see fit. 
• There is a higher chance you get exactly what you want. Your vision will be applied the way that you aspire.
• The new property will have a positive effect on the increased value. It is possible that the houses surrounding it are also newly built. 
• A new home will require less maintenance and repairs. This saves on extra costs and time. If anything goes wrong, you will have a structural deficit warranty with a newly built home. 

 

Cons

• A new home takes time to build which may cause problems for your occupation time. If you don’t already have a place to stay, this may result in you having to rent a place while your new home is being built and still have to pay interim period interest on funds drawn down from your lender to complete your home.  Double whammy but sometimes a necessary evil and just the cost of doing business which you should anticipate.
• Your contractor and maintenance crew may not be people who you are fond of. It is important to check for references and past projects when hiring people for what may be your first property project.
• Communication within the whole team can be a challenge. Good correspondence needs to be maintained for a successful outcome. 
• There is always the possibility of you running into additional costs on your budget. Architects, plumbers, technicians, landscapers, a legal team, financial advisors etc. are all examples of professions that need to be involved. Their services need to be considered in your budget. In the case where building takes longer, they need to be compensated for the extra time and services they provide. 

 

BUYING A HOME

Pros

• Existing homes are usually situated in areas with established infrastructure. This offers a better investment opportunity.
• Convenience plays a huge part in owning real estate. The property often comes with established landscaping, which means you won’t need to spend a bundle of money into the outside of your home. 
• It is easier to get expert advice on existing buildings. When you want to look into maintenance issues and defects, you would be referring to an existing structure. 
• The process is quicker. Securing the home loan, paying deposits and legal fees and approval of documents takes up a shorter time.

 

Cons

• It may be difficult finding a home that is in good condition. When you do find one with minimal deficits, chances are you come across issues that require major maintenance.
• The home will feel used. You won’t have the brand-new feeling of being the first to be in the space.
• Older properties are sold ‘as is’ without warranty. The condition you find it is how you buy it. If there are changes you want, it is solely your responsibility post-purchase. 
• The design, landscaping and finishes may not be in line with your preference. If it is an old building, it may not have modern technology currently trending. 

 

In conclusion, the decision is up to you. What you envision for your space may already exist or you may need to start from scratch. Consider your budget, your vision and the plans you have with your property. Working with an experienced real estate broker will help you narrow down your decision to what is better for you and your family.