Buying Vs. Building: A Financial Comparison

If you are reading this, then the chances are that you are in need of a new home, and being the financially savvy person that you are, you are wondering what works out best – buying a property or building one from scratch. Like most homeowners, you want a home that you can make your own, that is affordable to run, and that has the potential to grow with you and your family. 

The truth is that when it comes to investing in a new home, knowing which option to opt for can be a struggle, as there is so much that needs to be considered. Naturally, you want to ensure that you end up with the best outcome possible, which is a house that you love at an affordable price, and that is cost-effective to run, of course. 

Stuck between buying a property vs building one? To help you make the right decision for you, below are a few tips to consider. 

Building 

Building is becoming more and more popular, with higher numbers of new home owners having had their homes built for them, than ever before. However, just because this option is rising in popularity, that does not necessarily mean that it is the right option for you. 

Firstly, there is the cost of the plot of land to consider. This is an additional expense to add to your list of expenses. If you can find a cheap piece of land in a good location to purchase, then this isn’t a concern, but if the land is expensive, it can be. 

Of course, as well as the initial cost of the land, there is also the cost of any work that needs doing to it, to get it ready for building on, such as vibro-pier design, which is often used to improve ground stability. It is important to bear in mind that there are various costs that may come with purchasing land. 

There’s the cost of the construction team and materials also to consider, although these costs are often priced into the overall cost of the project and the initial cost of the property so you may have already counted these. 

A bonus of choosing to build your property from scratch is the fact that you can opt to use all eco-friendly materials, which should make the build more cost-effective. You can also choose to have a smart home built that is green in every way possible, including be energy efficient. 

While this may cost more to build, over the time you spend in your property, it will save you a lot of money. Plus, should you ever want to sell, an eco-friendly and sustainable home would give you a better price and profit. 

Buying 

When it comes to buying, there are fewer costs to consider, which can be seen as being a good thing. These costs include things like the price of an attorney, a surveying specialist, and contractors to complete any necessary works on the property before you move in. 

That’s the cause of one of the highest costs when building a readymade house – the cost of making it your own. Although the size of the property itself may be ideal for you, that doesn’t mean that it’s design and layout is, which is why there are often construction and design costs that come with purchasing a readymade house. 

The fact is that both buying and building property come with a range of costs. However, if you get the option, choosing to build property instead of buying it can be a more cost-effective option in the long-run. Particularly as the building is under warranty for a set period of time, and all of the fittings and fixtures are brand new, so it is less likely that you will have any costly problems to deal with.