It’s the classic home buyer’s conundrum: Should we build, or should we buy?
Each option has its pros and cons. Before you decide on your next home, take time to explore the arguments for and against each choice with the help of your real estate agent.
The Pros of Building a New House
Exterior and interior customization
Nobody knows your wants and needs better than you do, and having so much control over the details that fit your home to your taste and lifestyle is quite a luxury. Building a new home means that you get to pick out everything from the colour of your siding and trim to the placement of every single light bulb and outlet.
Better Value
Don’t be put off by the higher price tag on a new home over an existing one. You’re getting so much more for your money, such as newer building materials and modern finishes.
No competition with other buyers
You aren’t in competition with others that are interested in purchasing the same property as you.
Availability of modern facilities
Choices such as gas vs. electricity, solar power, and so on are readily available when building.
The Cons of Building a New House
Time and Money
The biggest drawbacks to building a house tend to be the higher costs and longer timeframe, both of which can increase throughout the home-building process. Nonetheless, you can limit the risk that your house will go over budget or take longer than you expected by working with a reputable builder and having a good contract in place.
Far from many social facilities and destinations
Many new construction neighborhoods and developments are built far from necessary destinations like schools and your usual supermarkets and shopping centres.
The Pros of Buying a House
Buying a new home is more convenient
If you set aside all the steps that building a house vs buying have in common, such as finding a real estate agent and getting qualified for a mortgage, buying an existing home can be an easier option. You just shop around, find the one you like, do your homework on the property and then make an offer. If you don’t have a lot of free time, this is the better option.
Warranties
Most new builds come with a warranty, which you don’t get with an existing home. But, a warranty doesn’t cover everything you might expect.
Value Appreciation & Availability
In general, it is easier to gauge the value of an existing home because there are more comparable homes that have recently been sold. Existing homeowners gain appreciation from an improving housing market, but also on certain improvements they make (i.e., replacing the roof, finishing the basement, updating the kitchen, etc.).
The Cons of Buying a House
Less space
Some developers pack a lot of properties onto a site in order to maximise their profits. This can mean a new-build home is less spacious than an older property. As this particularly affects storage space, check that your furniture fits and that your car will get into the garage.
Limited design
An already-built property means you’re limited with design and remodelling choices. If you’re intent on boosting your equity, there won’t always be a pool of possibilities for you to fish from. You could always try partial deconstruction, but that’s basically the same problem as with new homes–stagnant time, stagnant income.
No competition with other buyers
You aren’t in competition with others that are interested in purchasing the same property as you.
Availability of modern facilities
Choices such as gas vs. electricity, solar power, and so on are readily available when building.
The Cons of Building a New House
Time and Money
The biggest drawbacks to building a house tend to be the higher costs and longer timeframe, both of which can increase throughout the home-building process. Nonetheless, you can limit the risk that your house will go over budget or take longer than you expected by working with a reputable builder and having a good contract in place.
Far from many social facilities and destinations
Many new construction neighborhoods and developments are built far from necessary destinations like schools and your usual supermarkets and shopping centres.
The Pros of Buying a House
Buying a new home is more convenient
If you set aside all the steps that building a house vs buying have in common, such as finding a real estate agent and getting qualified for a mortgage, buying an existing home can be an easier option. You just shop around, find the one you like, do your homework on the property and then make an offer. If you don’t have a lot of free time, this is the better option.
Warranties
Most new builds come with a warranty, which you don’t get with an existing home. But, a warranty doesn’t cover everything you might expect.
Value Appreciation & Availability
In general, it is easier to gauge the value of an existing home because there are more comparable homes that have recently been sold. Existing homeowners gain appreciation from an improving housing market, but also on certain improvements they make (i.e., replacing the roof, finishing the basement, updating the kitchen, etc.).
The Cons of Buying a House
Less space
Some developers pack a lot of properties onto a site in order to maximise their profits. This can mean a new-build home is less spacious than an older property. As this particularly affects storage space, check that your furniture fits and that your car will get into the garage.
Limited design
An already-built property means you’re limited with design and remodelling choices. If you’re intent on boosting your equity, there won’t always be a pool of possibilities for you to fish from. You could always try partial deconstruction, but that’s basically the same problem as with new homes–stagnant time, stagnant income.
To Build or Buy?
Every buyer has his preference and financial options. Before you make up your mind, talk to others who have built and bought their homes. They may have ideas and lessons they can share with you. Finally, make sure to work with an experienced real estate agent who can help you find a home that meets your needs.
