Everyone has an idea of what their dream home looks like.
Sometimes, you can find a house that’s readily available on the market that ticks all the boxes but isn’t in the right price range. Other times, you’ll find absolutely nothing on the market that makes you feel excited. Constantly browsing potential properties in your area, only to come up short, can get pretty frustrating. Especially if what you want doesn’t seem too farfetched.
It’s easy to think, ‘I’ll just build my own instead!’ But is it actually a good idea?
This post should help you decide whether buying or building is the right choice for you.
Budget
Of course, as with any big decision, a lot of it comes down to what you can comfortably afford. If there’s a property on the market that’s within your price range but could do with a little refurbishment, you might be able to find a way to make your dream home within your original budget.
Alternatively, land in your desired location may be pretty cheap. Meaning that the idea of building your own home doesn’t seem all that bad.
A big thing to remember is that you’ll require different funding whether you’re building or buying.
When you buy a house, plenty of loans and mortgages are available to help you get onto the property ladder. However, if you’re building your dream home, you may need two longs to buy the land and another for the build.
New home construction loans are, therefore, a little more complicated. While you might be eligible for one, it doesn’t necessarily mean you’ll be eligible for the other. As a result, you might end up with a plot of land and no money to actually build on it…
Before weighing up your options, it’s a good idea to see whether or not you’d be able to get two loans for one project. It’s also worth remembering that this will mean you’ll have two monthly outgoings (both with interest added) rather than one.
Cost comparison
How much does constructing a house actually cost?
A surprising number of people choose to build their homes as it can turn out to be around 25% cheaper than buying a property that’s already available.
However, unlike buying a property – that can be instantly lived in – when constructing your own, you’ll also need to account for rental costs for another property while yours is being built. If you’re not able to stay with relatives for free, this could significantly impact the feasibility of building your dream home.
Convenience
Depending on the reason for your move, there may be some time constraints stopping you from building your own home. Buying a property is simply more convenient. Rather than trying to find a plot of land in the area you want to be located in, then managing a full construction site, buying a house means you’ll be in your new home, ready to start your new life pretty fast. Of course, you can always make improvements while you’re living there, but at least you have a roof over your head.
There’s certainly a lot to think about. Building a house from scratch means you can customize every element to create your perfect home – potentially cheaper than buying. However, buying offers a level of security and convenience, which might be exactly what you need.
