Buying vs. Building: Which Option is Best for You?

Are you looking to own your house? You know that a house is a large investment, whether you purchase it or construct it. You can either purchase a built house or you can build from scratch. In both situations, you will need a large budget. Yet, you will have to rely on funding sources from direct lenders. You might not be able to come down on one side of the fence or the other because both options are going to consume a lot of money.  

If you are vacillating between both options, ask yourself the following questions and then figure out which one suits your needs best: buying or building. 

What type of house do you want? 

Building your home will be the best option if you are looking for a house that fits your needs exactly. However, the cost could be quite high. Constructing your house from scratch is way more expensive than purchasing an existing house. Here comes the role of your budget. Before you jump into your decision, you should carefully research the market.  

• Are you certain that the specifics you want in your house are not available in already built homes in your picked area? 
• Do you think that the feature you want in your house can be put in an existing house through renovation? Sometimes, refurbishment could be a more affordable option than building your house from the ground up.  

Some features add a unique style to your house. It is likely that you cannot find them in existing houses on the market. It is possible that you have a second thought on them because of the high cost, but you can pursue your dream if: 

• You cannot compromise on that style or feature under any circumstances. 
• It is your lifelong dream. 
• It is worth the additional cost you will need to build your house.  

Another thing you need to look at is the specific need for your family member. For instance, if any family member of yours is disabled, you may have to get doors customized. You may also need to customize the flooring, rooms, and bathrooms. There are certain things that cannot go uncompromised. Of course, you will have to build your own house if you need to make it suitable for your needs.  

You might want to renovate your house to add these features, but it is likely that the renovation will cost you a lot of money. You should always compare the cost of purchasing an existing property with renovation charges with the cost of building a house from the ground up. There is no doubt that building your own home could be cost-friendlier than purchasing an existing house.  

What size of budget do you have for your house? 

Whether you will be able to purchase a built house or construct it from the ground up largely depends on your budget. Generally, purchasing an existing house is more budget-friendly than designing and building your own house. According to data collected by Home Builders, a constructed house will cost you at least £100,000 more.

However, you do not have to conclude that building your house is way more expensive than purchasing a built one. The fact is that the cost goes up because people go with major specificities. Everything costs. If you consume too much timber, the total cost of the house will certainly go up. If you go with the latest interior designs, the cost of your house will naturally increase dramatically.  

Cost cannot be a major factor when it comes to choosing between constructing and purchasing. This is because of the level and the type of work you have done. However, if you still find that your budget will break, purchasing an existing house will always be a safer plan.  

You may still need to borrow money from a direct lender. Various types of loans are available out there to fund renovation projects. However, if you are looking to take out a bad credit personal loan online, make sure that you will not struggle to repay the debt on time.  

What location have you picked? 

Another factor that decides whether you should purchase a built home or construct a home is the location you have chosen. Are you looking to buy your house within the centre of the city, or are you looking to live on the outskirts? When you know the location, it would help you make the decision too quickly. In the crowded area, of course, you will have difficulty getting a piece of land. In that situation, you would certainly prefer to purchase a built house.  

If you manage to get a plot in a city, you would find that the cost of buying a plot and building a house from the ground up is way too expensive. Building a house on a vacant lot is advisable when you prefer to move to the outskirts. Land in large cities is more expensive than land in the countryside. Choosing the outskirts will help you grab a large lot at a lower price. Your budget will not be ruined even if you have to borrow some money. In some places, the piece of land is too expensive to be worth the cost of purchasing an existing property.  

If you decide to live in rural areas, you can find a piece of land at a very low price. But there are other things you need to focus on. For instance, whether there are accessible utilities on site. In some places, constructing a building is not suggested. Make sure that the transport of the raw material does not add cost to your budget because the farther the place, the higher the transportation cost will be.  

The final word 

It can be quite confusing to choose between buying and building, but the aforementioned factors can help you decide. If you are looking to shift your house soon, you can think of purchasing a built house and renovating it. This takes less time than building a house from the ground up. However, if you can wait too long, you can consider building your house.