When you start to look at homes, you need to be open to the number of options available for getting a home. The most popular question with all homeowners is whether to build your own home or buy a house. With the prices of buying a new home keep increasing and mortgage rates continue going down, the timing could be ideal to buy a pre-existing or a new home. Putting into consideration all the costs of securing a new home, which one is better: buying or building?
Building a Home
Since new homes are very expensive, you might think of buying a pre-existing home. However, you might find out that you can save a lot by building your own home.
PROS
There are many benefits of building your own home. You’ll need to know a few things in order to get the best house that meets your needs.
- Discounts on material – You can enjoy very attractive builders discount from suppliers like your local lumberyard. You can save a lot for lighting fixtures and about 10% from lumber.
- Everything in the house is new – shifting into an existing home could come with some hidden costs like upgrading that may not be obvious during the purchase.
- Design Control – You design a new home from scratch, therefore you are at an advantage. One expense you might be spared could be remodeling a bathroom.
- Yearly savings – If you have a new cooling and heating system, you can save a lot every year in repairs. If you buy an existing house you may spend up to $7,000 for a new air conditioning system.
- Great entertainment – it is easier to hold large parties in a new home than an old because you have an open floor plan that accommodates large groups. You have easy access to rooms and enjoy the space you value.
CONS
Even when you build your own home it’s not a guarantee that everything will be perfect. Building your own home can come with unexpected costs.
- Time factor – it is a long time to wait to complete your own home and things can happen while you are waiting to move in.
- Taste limitations – You can be limited in the design of the house you want due to your price range. You’ll discover that making various changes upgrading the property can be very expensive from the builder.
- Loan payments and permits
- Temporary housing expenses as you wait to move.
Buying Your House
Buying is always an attractive option and there is a huge market of homes that aren’t new construction.
PROS
- Opportunity to upgrade your house over time
- You can move in quickly
- You get to have a ready neighborhood
- You can visualize the layout of the house easily
CONS
- It’s possible to fall into the hands of quirks when buying
- The costs of upgrading are very high
- You will be stuck with the layout and design forever
- Suffer higher home insurance costs
There is no exact formula to decide whether to buy or build. It is recommended to go through the pros and cons of both process and tally them with your preferences and budget to come with a better conclusion.
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