18 Jul Building a house pros & cons
Building or buying is a big decision. There are multiple factors that come into play when trying to decide which way you should go. Building a house has advantages and disadvantages just like buying. The decision will ultimately come down to personal preferences and what suits you and your family. In this article we discuss some of the most common pros and cons when it comes to building a new house.
Pro #1 – You get what you want
When you decide to build as opposed to buying the first and biggest advantage is that you can get exactly what you want. When you buy, there are typically some sacrifices you have to make. This may mean you have to end up doing alterations, renovations or an addition to get the location you want and the house you and your family need. When building you can design a home that matches the block, your lifestyle and budget.
Pro #2 – Finish & quality
When building a new home one of the biggest advantages is the quality and finish of your home. When buying there may be wear and tear and the quality of finishes may be dated. With a brand new home you get brand new finishes and the quality will be dictated by your overall budget. Balancing the cost of additional maintenance work when buying can sway people to build instead of buying a pre-existing home.
Pro #3 – Efficiency & savings
If you’re building a new home it means you’re using brand new appliances and materials. A new home also has to meet certain energy efficiency requirements depending on where you’re building. This means the long term savings may be better with your house being more energy efficient. You’ll see more money in your back pocket over the longer term. If you’re environmentally conscious building a new home that is sustainable and energy efficient will have a positive impact on the environment.
Con #1 – It takes time
Building a new home is a big investment of time. The construction process can take anywhere from 9-12 months depending on the size and type of home you’re building. When you take into account the design and approval process you’re looking at a significant amount of time required to get to the point where you are moving in. You should also be prepared to have to spend time during the construction process in discussion with the builder. This may include site visits and completing selections to get your home finished.
Con #2 – What are the costs
In addition to the investment of time there also may be some additional costs associated with building a new home. During the construction you will need to live somewhere else so you have the cost of rent or additional mortgage repayments. Being aware of the costs and the progress payment schedule associated with the build can help you forecast the additional cost throughout the entire build process.
Con #3 – Finance
There are extra requirements when it comes to construction loans, which may change some of the ways banks will assess the lending to fund the home build. A home purchase is more straightforward, so the complexity of a new home build may result in longer turnaround times for approval of finance. Talking to different lenders around what they do when it comes to construction loans is important to assess prior to deciding whether to build or buy.
Hopefully, these simple tips will help you when it comes down to deciding whether to build or buy. Each has it’s own distinct advantages and disadvantages and the cost to do each and the benefit will vary depending on your location.