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carl@carlandarda.com
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    Pros And Cons Of Buying Versus Building

    Published 06/13/2023 | Posted by Arda Clark

    Purchasing a home is a tough decision. You’re probably going to live there around eight to ten years, on average, so you want to make sure it’s somewhere you want to live. The good thing about building new is that you can make sure the home itself is right for you. But it’s really not that simple. There are pros and cons to both buying and building.

    The most obvious advantage to buying an existing home is the reduced hassle. You don’t need to oversee the design and construction, making sure everything is to your specifications. You don’t need to wait for construction to finish before moving in, and while delays are still possible, there are fewer opportunities for delays. Another is that purchasing a home may be less expensive. This depends on the area, but construction costs are still high. Moreover, existing homes have almost immediate resale value, which can mean greater equity when you go to sell it. A less apparent advantage of buying an existing home is location. You might imagine that when you’re building new, you can pick anywhere to build as well, but the fact of the matter is that there are far more existing homes than empty lots, so you don’t get as much choice of where to build unless you’re planning to bulldoze an existing home.

    The primary benefit to building new is customization. Whether you’re buying or building, you should have a good idea of what you need or want in a home. By building new, you ensure that you get those things, as long as they’re within your budget and no complications occur. A new home also means fewer issues, at least once the construction is finished. Any major structural issues would be the fault of the builders and not age. The property will use the latest building technologies, which are generally safer and more energy efficient. Building new is also a safer investment, albeit not necessarily a highly profitable one. It may take longer for a newly constructed home to accrue equity, but it’s extremely unlikely to go negative by the time you sell.

    Photo by Brett Jordan on Unsplash

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