You have finally made the decision to invest in a house but don’t whether to buy a ready one or build it. You may find that you don’t want to get into the nitty-gritty of building and would prefer to have a complete ready unit that is turn- key. However, when buying, you may need to compromise on what you like because you will be buying a house that is based on someone else’s taste.
The fact that you’re buying a complete house may also require you to do some remodeling or upgrading, this is especially true for houses built centuries ago thus an additional cost that you may not want, or be able to afford to take on at that particular time.
Building a house also comes with this with its own limitations, for example, you have to buy the land, the building material, look for credible contractors and spend time in supervising the project.
Before you decide on whether to buy or build, there are certain pertinent questions you need to ask yourself first.
Should you buy a ready house or build?
The main benefit of buying a ready house is that you know the cost upfront. When you build, costs may vary as the construction progresses. Any market change in material cost will invariably affect your projected estimate for the building.
When you’re buying a ready house you take the house as is. The owner may undertake major renovations, but if you want to remodel or upgrade, you’ll have to pay for it out of your pocket. When you are building, on the other hand, you can customize the design to what you want and can make changes as you go along which gives you more flexibility. Some of the materials are new and will have a warranty.
On financing, most lenders are willing to advance loans to purchase the property. There are many mortgage packages you can take but it does behoove you to make sure that whatever you take doesn’t have high interest rates and are manageable so that you’re able to finish the payments in good time.
If you like the outdoors then landscaping is very important to you. The advantage of buying a ready house is that the landscape will probably be mature. If you are building, on the other hand, you will have to start fresh and this could take years and large amounts of money.
Whether you decide to buy or build, do your research and make fact-based decisions on whatever it is that you are about to purchase. If it is a ready house, make sure that it is not collateral for a secured loan or that there is a dispute on the property. If you’re going to build make sure that you have all the relevant documents, research the area well and ensure that it fits all your requirements.