Buying Established vs. Building Your Own Home

So you are finally ready to move into your own home but still on the fence thinking about whether you should be buying a house or building it. With home price inflation continuously going upward, many would-be property investors are thinking of moving into an existing property rather than building something from scratch. But designing and building your "perfect home" can be a surreal and once-in-a-lifetime experience that many property investors would not trade for anything else. 
There are many determinant factors to consider before investing in any kind of property and they come with their own pros and cons. From property taxes and the condition of the property to market trends, location, and homeowners association fees, there are a lot of determining aspects. Hence you should be the best decision-maker or consult with a reputable home builder on which option suits you the best.

Is It Cheaper To Buy Or Build A House?

It is always cheaper to buy an existing house than to build one from scratch. The associated cost of building a brand new house from scratch can involve buying the plot, inspections, permits, excavations, and other associated costs. But building a new home can get you exactly what you want. 
From creating a more energy-efficient home to meeting standards for heating, ventilation, and cooling, there is a different level of satisfaction associated with this decision.

Pros Of Building A House

• Complete customization: When you build a house from scratch, it enables you to make each and every personalizing decision according to your taste and lifestyle. From the type of flooring, fixtures, and cabinets to the entire layout and lighting, building a home gives you the entire control over what you are looking for. 
  

• A lesser level of competition: You have zero competition when you are building your own home as apartments and builder homes are selling like hotcakes in the current real estate market. This can also give you peace of mind. 
  

• Less maintenance: You don't have to worry about big maintenance issues and major repairs as new homes are built in a way to have up-to-date technology and follow the current building codes. Moreover, you will also have your home builders warranty for all the major systems of your home. And your new appliances will also have guarantees. Plus there will be no bad surprises from the last owner's DIY repairs as you are the first one to move into your brand-new home!
  

• Energy Efficiency: New homes always feature state-of-art systems that are energy efficient which leads to lower energy bills. Moreover, if you are concerned about your environmental responsibilities then you can also make the right choices and prioritize sustainability accordingly.
  

Cons Of Building A House

• Expensive financing: Land loans are more difficult to obtain as they lack collateral and have a higher interest rate and down payment. You might also need an additional construction loan to finance your actual home.
  

• Long wait time: It takes an average of 7 to 12 months to complete the construction of a new home without taking the approval and planning stages into account. So you will have to live in rented accommodation till the time your home is ready. This also means you will be paying the mortgage plus the construction costs along with your current rent.
  

• Hard to negotiate price: There isn't a lot of leeway when it comes to purchasing price or closing costs of a newly built home. While in the resale market most buyers go into a home purchase for a lower price. In such cases, you can get a real estate agent for their creative negotiation skills.
  
  ​Unexpected costs: Although you will receive an estimate of all the construction costs upfront, there is always a lingering chance of unexpected costs to crop up throughout the home-building process. From pandemic-related supply chain issues to building cost overruns to labor shortages or hike in wages, it can be anything.
  

Pros Of Buying An Existing House

• Faster move-in time: If you are hoping to move in quickly to your new home, it is always better to buy an existing property. Since home construction projects will take 7 to 12 months for completion, you will most likely be done with all the customization and repair work of your existing home in half the time.
  

• Cost-efficient: As a general rule of thumb, buying an existing property is always cheaper than building one. Moreover, a land loan is always riskier than a home loan as it comes with better interest and lesser down payment rates.
  

• Customize and upgrade: You can make your own personalization and customization to the existing home whenever you have the right kind of time and money. This gives you a lot of flexibility and cost efficiency.
  

• Better landscaping: An existing home will also eliminate some of your landscaping costs as it will already have some. If you like more mature and shade-giving trees on your property, you should always go for an existing property. As it will take years for new landscaping to match the attractiveness of mature landscaping.
  

Cons Of Buying An Existing House

​

• Time-consuming: Searching for the perfect home before you can invest can be a time-consuming and stressful experience. It is a seller's market and hence buyers are facing high prices, multiple rejected offers, and bidding wars when it comes to finding their "perfect home." Working with a good real estate agent or home builder can help in this scenario.
  

• Compromise on personal style: When you have a wide variety of choices, finding a home that reflects your taste and lifestyle can be very tough.
  

• Maintenance issues: Older appliances, electrical systems, and plumbing can have major maintenance issues and soaring repair prices. Hence you should always go for a home warranty so that you know how much to budget and whom to call in case of a problem. 
  

Less energy efficient: You can face higher energy bills as older homes are less energy efficient. Of course, you can take significant steps to lower your energy bills and reduce your carbon footprint.

The Takeaway

As you have already read about the pros and cons of both buying and building a house, you can move forward with your decision by speaking to an experienced home builder in your area. There is no definitive answer to the original question as both decisions come with their own set of pros and cons. 
If you want to know more about whether you should buy or build a house in the current market, visit https://www.konnectbuilding.com.au/ to have your questions answered.

Name, Address and Phone

Konnect Building Solutions, 
Bardwell Park Sydney NSW 2207, 
0402658244
https://www.facebook.com/konnectbuilding/
​https://www.instagram.com/konnectbuilding/