Your First Home: Build or Buy? - Pearl Financial

Your First Home: Build or Buy?

By Shane | Building

Oct 10

Have you been thinking about whether to buy an existing home or build a new one? If yes, then you’re on the right page. To help you out in the process here is a more simplified list of some points to consider before making your choice.

A home is generally the largest investment that an individual makes. Since the home-buying process can be an exciting time, especially for first-time homebuyers, most of them end up spending a huge amount of time and energy either looking for or designing the perfect home before signing any contracts. While the home-buying process includes a number of significant choices, one of the very first decision buyers need to make is whether to look for an existing home or build a new one.

Should I Buy?

Convenience and cost can be your primary advantages to buying an existing home. Once you have received your pre-approval, you can start with your search, choose a home and make an offer. An experienced real estate professional can also help simplify the process by assisting you in finding appropriate properties, and guiding you through negotiations and paperwork. Once your offer has been accepted, you may be able to choose and move in within a month or two.

The process basically involves numerous steps like financing, home viewing, making offers, home inspections and closing. Even though completing the process may take a lot of steps, the convenience of being able to move in right away is convincing enough for most people to choose an existing home over building a new one. This may be especially favourable for a buyer with a constricted schedule, such as relocating for a new job or whose children will be starting at a new school.

Another reason that an existing home could be an option is if you would like to be in a specific established neighbourhood near your work, school, friends and family. Chances are too, that the house has developed landscaping, which means that there’s no need for you to worry about starting a lawn, planting shrubs, and growing trees.

Should I Build?

Building a new home does not suggest the same convenience as buying an existing home. Not only that you have to find the land, which will probably not be in an existing neighbourhood, but you also have to add in the time of finding an architect or builder, process further requirements on environmental and other permits, and indicate every component of the new structure.

But the big advantage is that it is much more likely that you’ll get exactly what you want. This aspect alone can be enough for you to choose to build over buying a home. A newly built home can also be more efficient, built with certain materials making it better for the environment; and better efficiency can ultimately save you money on utility bills each month.

Another benefit? A new home may be better for you because it requires fewer repairs and less maintenance, which can save you both time and money. You’ll also have a warranty in place, so even if something goes wrong with your new home, you are still covered. Costs and features aside, opting to build your home may lead you to a level of satisfaction that you’ll less likely achieve over buying an existing home.

Bottom line is, whether you’re buying or building a home, making a list of the features that are most applicable to you would be of big help in understanding which approach would more beneficial for you. Your house is your biggest investment so it’s absolutely acceptable to be picky. You may also work with either a real estate agent or a general contractor to ensure the process may run as smoothly possible.

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About the Author

Shane specialises in helping Gen Y professionals and business owners make an impact by accumulating more assets, generating more income, and having more time to enjoy life. He has a Master of Applied Finance, an MBA, and a Master of Financial Planning. He is also a terrible golfer.

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