Most (if not all) of us start our adult lives renting apartments. However, there comes a time when you’ve saved up and had enough of paying your landlord rent. In fact, 65.5% Americans are homeowners, so most of us succeed in this transition!
You can always purchase a house that’s already built, which is what the majority of people do. But building a property is also an option, and surprisingly, many don’t consider it at all.
So should you build or buy your next home? Read on to see the important things you should consider.
Are You a First-Time Buyer?
Real estate can be a difficult world to navigate, so it’s not uncommon for first-time buyers to be overwhelmed. For this reason, it’s best if you buy an existing home.
If you try and build a house as a first-time homeowner, it can be too much. A new build requires you to consult with a bunch of professionals to conceptualize and put together your dream home.
It’s best to start off with an existing build, as you’ll get some homeownership experience. You’ll also build equity, and with both of these things, you’ll have a better time building a property that’s up to your standards.
Where Do You Want to Live?
You should have a clear idea of where you want to live, and not just the city either. You should have a general sense of which neighborhoods you’re interested in.
From there, it’s clear whether or not you should buy a home or build one. If there’s no remaining land for purchase and it’s all been built on already, then you have no choice but to buy an existing house. Otherwise, you’ll have to compromise on where you live in order to build from the ground up.
When Do You Need to Move?
Do you need to move in a short time frame? Then building a new home isn’t a wise choice.
This route can take anywhere from several months to years, depending on what you want to be done and how big the house is. Plus, construction projects notoriously suffer from delays, so your earliest move-in date will probably be later than expected.
If you need to get out of your current property and into a new one soon, then the safer bet is an existing home. Because it’s already built, you only need to close on it, then get the keys to move in.
Do You Have Lots of Specific Needs?
You’re putting a large sum of money down for a property, so it’s understandable that you’ll have a long list of wants and needs. While some are negotiable, others aren’t.
If you’re lucky, the local market will have some homes that check most of your list; if you’re super lucky, you’ll land a house that checks all of it! However, this won’t realistically happen in most cases.
At this point, you’ll have to decide whether the points on your list are important enough that you don’t want to compromise on them. If so, then you’ll have to build your own house. With a professional like Vulcan Construction, you’ll have peace of mind knowing that all your dream details will be brought to life.
Are You Handy?
Those who have DIY skills will save money either way, as they won’t have to hire people to fix and replace things.
For example, let’s say you purchase a fixer-upper. This cuts down on costs, but if it’s in bad enough shape, then you’ll spend a big amount getting it in good condition again. But if you’re handy, you can do a lot of the repairs yourself, which reduces your costs.
Even when getting a new build, you can have the pros do the basics. You can then go in and finish up everything to your standards, and you’ll save money here too.
For the best in convenience and costs, it’s best to buy an existing home that’s in solid condition if you’re a decent DIYer. You won’t have to start from scratch, nor will you have to pay extra for repairs.
Do You Have Spare Time and Energy?
It’s one thing to want to build a house; having enough time to do it is another thing. Chances are, you’ve got a full-time job, and coordinating the construction of a home will take a lot of time and energy to do on top of that.
If you have enough saved up and can afford to take some time off of work, then it can be satisfying and fulfilling to build from scratch. Although it’ll take hard work to vet and coordinate with architects and contractors, you’ll end up with something truly unique that you can call your home.
How Much Money Do You Have?
In most cases, building a new house will cost more than purchasing one. For an existing home, what you see is pretty much what you get, minus some other fees (such as the commission for your real estate agent).
However, costs will be muddier for a new build. Not only do you need to factor in materials and the land, but also the permits and even things like landscaping. Material costs can fluctuate as time goes on too, so your costs will seem unclear at times.
Will You Build or Buy?
Whether you build or buy your home, it’ll certainly be an exciting time. No longer will you be tied to monthly rent payments that don’t get you anywhere; you’ll finally have something to call your own!
It’s up to you (and your partner) to carefully weigh the pros and cons of building vs buying. Asking for expert opinions will help too; the more information you have, the better. Only then can you make an informed decision?
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