Is Buying a House is Cheaper Than Building a House?
You’ve come to that interesting point where you’d want to bid farewell to rental houses, and would like to own your home. The Cost, being one of the primary considerations, is the driving factor in this case. You want to a take a move that will fit your budget and save you some bucks. Despite being ready, the main challenge is that you are caught up in a dilemma when it comes to deciding either to buy or to build your dream house.
After reading thousands of content that look promising, none of that information seems to offer help. Do not worry. Your search ends here as I’m going to ensure that you have made a resolve on which direction to take by the end of this piece. Just spare some time in your tight schedule and I’m going to remove all the doubts in you. Then next thing you’d want to do is go right ahead with your preparations for acquiring the asset.
To own a new home, it will cost you not less than $305,000 in the US. Compare that with the cost of a pre-existing that the National Association of Home Builders found to be worth $221,600. That was the average price you’d have to pay to acquire either a new or an already existing home in November 2015. You can be sure to cough more bucks at this time, now that the costs of the houses are increasingly rising. Invest in a home now while the mortgage rates are still low.
Since statistics show that buying an already existing home is a cheaper option, you might have already settled on acquiring a pre-existing home. But you need to understand that at times, the builders might offer significant discounts to homeowners just to remain in business and also attract more buyers.
Benefits of Building Your Own House
- Crazy Discounts of Materials: remember that the aim of any suppliers is to attract as many customers as possible. According to professionals, it reaches a time when they decide to offer great discounts on the building materials provided your purchases hits the set target. The suppliers are in business and will try to out-do their competitors by offering lower prices. As an economist, taking advantage of such discounts will save you some of cash.
- Everything is New: you might decide that the cost of a new home is higher than an existing one, and so you move into an existing property. That is OK if there is nothing much or none at all to fix. But imagine moving into such a home only to find out that you need to fix almost everything. Already existing homes may come with a hidden cost that you may overlook only to be overwhelmed later. You need to figure out that if you, for instance, acquired an already existing 2,000 sq.ft. Home in Los Angeles that demands to repaint the exterior will cost you between $2,300 and $5,400. New items rarely have defects. If they do not function as expected, there is always warranty given by the suppliers, which means you will have nothing to lose.
- Control Over Design: Everyone has their preferences and as a person who is out to own a home, it is highly likely that you have visualized how you’d want your house to look. There is a mental model that is already complete to the roofing. But you have to give up that which you aim and accept what you can see if you go to a pre-existing property. Despite the fact that you might like the house, there are always things that you would have done differently. That only emphasizes that everyone has their unique tastes. Sometimes, it reaches a point where you decide to change a few things to suit your standards. A good example would be a house with several bedrooms but a single bathroom. You choose that each room has to have a bathroom, then that comes with an additional cost. Otherwise, you live with it yet not satisfied.
- Ease of Hosting: Humans are such social beings. No doubt about that. At one point in life, you might host a large group at your home. Imagine a poorly designed layout where you have to walk through a bedroom to access the communal washroom. Newly built homes provide an excellent plan. They allow customization in that you can instruct what you want them to do; An extensive open floor that can accommodate many people. From there, they can feel comfortable accessing all the essential things that human desire. While building your house may come with lots of benefits, there are shortcomings also
Shortcomings of Building Your Own home
- Time Factor: Waiting for completion when building a new home demands patience. It takes four to six months to construct a new home right from laying the foundation. A lot might have changed within that waiting duration even before you move to your new home. The location is a vital aspect when it comes to owning a property. You may get a job transfer while still in the preparations of moving.
- Legal Aspects: It is necessary to go through carefully any documentation from the builder before signing. Legal considerations exist in any society to cushion consumers against exploitation from service providers and manufacturers. There instances where you take the builder to court if the process goes wrong. The agreement should have a provision for that. Most builders will tend to take advantage of the ignorant first-time homeowners by infringing on their rights. To be sure, consult a legal advisor, first.
- Budget limitations: Although you have the freedom to direct the builder to build the home according to your specifications, your budget might apparently limit you. Look, money is that we require to have a good looking home that we all desire, however, it’s never enough. A home constructed to suit our needs. Without it, you will have to go for that design that your pocket can accommodate. When carrying out a task, you have a certain price range beyond which you cannot go.
- Buying an Existing House: Most people would prefer buying a house. First, they are cheaper, and secondly, you can just move in immediately after the purchase. What You need to understand is that it’s pretty hard to find a home without flaws. There are instances, though, where people have bought a crappy house and then went ahead to renovate it. Finally, they sell it at a premium price later. In fact, they end up making insane profits in the process.
Benefits of Buying an Existing House
- Faster Moving: Yes. The good thing about buying an already existing home is that you can move in quickly. Paying for temporary housing or waiting until a new house is complete is not a good option.
- Delayed Upgrades: If your resources don’t allow, you can occupy the home immediately as it is and plan for renovations later.
- Visualization Easy: You never know how much it cost you to create a precise design when building a new home. However, with an existing home, everything is visible and you, therefore, can make estimations for how much it would cost to remodel the home.
- Existing Lawn: Yard lawns cost a fortune not only to design but also to maintaining. A new home demands that you develop one and wait till it comes to size to enjoy a beautiful and serene surrounding. Buying a home saves you time and money that comes with designing and maintaining a lawn to maturity
Shortcomings of the Purchase of a House
- Mess that Require Fixing: It is important to be keen enough when inspecting the status of a home before closing the deal. Look for even the finer details. You may buy a house only to discover major problems later.
- Upgrading Cost: Estimate the much it would cost you to do any remodeling in case you buy the house. An upgrade can cost thousands of dollars, and if you’re not careful enough when buying, you may blame yourself for that choice.
- You Have to Accept the Layout: A pre-owned house’s open floor is a hard and an expensive deal if you decide to change.
- The Cost of Decorations: To achieve the current home decoration standards you would probably need to remove the wallpaper, changing the colors and even redoing the floors.
- Verdict: Buying a pre-owned house is, undoubtedly, cheaper compared to building a home from scratch. However, many things come into play when settling on either option. So, most likely there is no straight answer to the question. What you need is just to get a list of the features that you need and then get to know how much it would cost to have them in your dream home. If a pre-existing home can offer them at a pocket-friendly price, then go for that. Of course while considering all other factors. Weigh the better option and come up with your strategy of saving that extra penny while getting value for your money.