96% of Millenial investors are more interested in making a real estate investment than their boomer counterparts. However, the big question about making a real estate investment is whether to build or buy property. Read on to learn which is the best for you.
Advantages and Disadvantages of Buying a Home
Many people prefer buying an existing home instead of building one. The following are the advantages and disadvantages of purchasing a home.
Advantages
Cheaper: Buying an existing home is usually cheaper than building new construction homes. A home loan also attracts less interest than a land loan and is less risky.
Quicker: Unlike building a house, buying an existing establishment is quick. It takes a few days to a couple of months to complete a house sale transaction.
Multiple Options: Buying a home comes with the luxury of numerous options to choose from, especially if you are househunting in a developed area.
Disadvantages
Bidding Issues: It is possible to experience bidding issues when buying a house. That’s because of the availability of many bidders wanting the same house.
Low Energy Efficiency: There is a possibility of buying older homes when buying property. Older homes are less energy-efficient and can result in higher energy costs.
Stressful Process: The process of looking, bidding, and buying a house is often stressful. That’s primarily because the process is time-consuming and can take extended periods to complete.
Advantages and Disadvantages of Building a House
Here are the potential advantages and disadvantages for those who fancy building a new house instead of buying an existing one.
Advantages
Customization Options: One advantage of building a new home is the availability of multiple customization options. You can model your home the way you want based on your budget, needs, and preferences.
High Energy Efficiency: A new home built from scratch is more energy efficient. Additionally, building a new home allows you to make your home energy efficient by buying proper materials and applying necessary building techniques to attain the desired efficiency levels.
Less Maintenance: A newly constructed house needs less maintenance. This will save you a lot of time, money, and stress.
Disadvantages
Costly: Building a house is expensive. Direct costs include buying construction materials and hiring professionals specializing in new construction homes. Unexpected expenses are also common.
Time-Consuming: Building a new home takes a longer time. Things like preparing the land, transporting materials, and the actual construction process can take time.
These points will help you determine if buying or building a home is the right choice for you. Contact the experts at Stone Meadow Homes if you are looking to build a home.