Most aspiring homeowners prefer buying already-built homes, while others prefer building one themselves.
The buying option is pretty straightforward; make a budget, get on the market for a home within your budget, buy, and the house is yours to live in. On the other hand, building a house is quite different and may not be as straightforward.
However, being complicated doesn’t mean it is not a viable option. If you are yet to decide on building or buying a home, this post can make your decision-making process easier.
It Starts With the Design
The best part of building a house as opposed to buying is that you have the privilege of choosing the design you want for a home. While you may also get your design through buying, you may not have the luxury of customizing your home to the last detail of your expectation.
You may have an idea of the type of house you need, but bringing the concept to life may not be your thing, and it doesn’t have to. All you will need is to communicate your dream house’s mental picture to a home builder and designer, and they will help bring your mental picture to life.
Cost of Building a Home
The cost of building a house from scratch is dependent on the cost of land and construction.
Going by the data from UDIA, the cost of land and building a 222.5sqm was at $857,638.50 in 2019. During the same period, the cost of buying an already-built house sitting on was $1,134,809.50.
Going by these figures, Building is $277,171 cheaper than buying one. But the cost isn’t the only factor to consider when determining the complexity or simplicity of building a house. Other factors such as time, convenience, and access to funding are also important.
Benefits of Building a Home
- You get what you want. If you have a design that you do not want to compromise on, getting a house to fit your exact need will be a challenge. You may find building a house easier than buying one from such a perspective.
- You can guarantee the condition of the home’s appliances and fittings. When moving into an old home, there is always a chance that some fittings and appliances such as the weather conditioning systems, pipes, and electrical fittings are old and require an overhaul, driving the expenses involved in acquiring a home even higher.
Cons of Building a Home
- Getting funding for building a house can be more of a challenge than taking a loan to buy an already built house. This is because the lending company will need collateral. The home will be the collateral for the already built home, so the lender knows they can recover their money if you default on payments. If money is a challenge, you may see buying the home option as the easier one.
- Time. If you are looking to move in fast, building a house may not be an option. Signing contracts, having your plans approved and finishing the construction can be quite a process.
- Building a home can easily overwhelm anybody. While most of the heavy lifting will be with your contractor, the burden of financing will be on your shoulders and can at times be more than anticipated, which can result in stressful situations.
Final Words
If the focus is entirely on the financial aspect, building a home is cheaper than buying one. Other factors also play a role when determining the complexity or the simplicity of building a home, so the choice will largely depend on what you want and when you want it.
