A house is perhaps the most expensive asset you will ever buy. When you are putting a significant portion of your hard-earned money into a house, it is only fair to get the best value for your investment. when buying a house, you need to make several decisions, like choosing the right neighborhood, and the right size for your family’s needs. Some of you may be picky about the layout and the condition of the house. In this scenario, some of you may wonder if it is better to build a residence instead of buying one. Let’s dive deeper into this and examine the factors that may impact your decision.
Although there is no hard and fast rule, building a home usually costs more. When constructing a home, you would want to do everything right, and it starts at picking the right spot. It is where your costs start escalating. Secondly, your builder is going to expect a decent commission on the work done on your project. Thirdly, you will have to ensure you follow all the regulations. For instance, you will have to see to it that the house can endure strong winds and has the right elevation to survive floods. Then there are several environment-friendly and green options you can choose from. All of these, when combined, can considerably increase the cost of building a home.
Well, buying a home is definitely a lot more convenient than building one. Specifically, if you have liked a particular neighborhood that has all the right facilities nearby. It could also be closer to your home and friends. All you need is to move with your belongings to call it home. On the other hand, if you build a home, you will also have to work hard before you can call it home. For example, you will have to spend considerable time and effort in landscaping it. An existing house will already have a lawn, a few shrubs and trees to get you started with the garden setting.
If you are particular or have some specific needs, it is advisable to build your own house. Making structural changes to an existing home will not only be challenging but may also cost you more. For instance, you could have always dreamed of a walk-in closet or a jacuzzi in your bathroom. Older homes may not fit the bill as per your needs. For instance, you could want a larger kitchen or an extra washroom. It may be hard to accommodate such special needs in an existing house.
You may not foresee it but building a house comes with a lot of hidden expenses that may topple your budget. False ceilings, window panes, cabinets and even a fresh coat of paint can add to your overall costs. Moreover, if you are building a bigger house, you may have to buy furniture as your old items may not work. In an attempt to lower the costs, most builders use basic flooring and plumbing. If you are picky, you may not like them. Whether you replace them now or at a later stage, it is going to cost you. Lastly, installing a heating furnace is generally expensive. However, that totally depends on the location you choose. These are certain costs that get overlooked while buying a house.
When it comes to maintenance, building a home is a much better option. You won’t have to worry about molds or rust damaging your house. Moreover, you can select sustainable and energy-efficient options from the perspective of long-term sustenance. An existing home may require certain serious repairs that may increase your costs.
As seen above, deciding the right option depends on what you can afford and want. To bridge your financial gap, you can apply for a home loan when buying an existing house. If you choose to build your home, you can apply for a construction loan to account for the expenses involved. However, banks are more willing to extend home loans instead of constructions loans. You can also opt for a raw land loan or a lot land loans to cover your land costs. However, banks consider these loans to be riskier and thus do not extend them easily, The down payment is also high in these cases.