Thinking about buying a house or land to build on? While building a home is popular locally it is essential to consider all the factors involved with either decision.
Let’s look into some of these factors below:
Buying a House
Buying an already-built house has both pros and cons, see some key points to consider here:
Pros of Buying a Home:
Less Costly (Dependent Upon Market Conditions)
Generally buying an already-built house is a cheaper option due to home loans being less risky and having a lower down payment than land loans.
Quicker Move-In Date
If you are in a rush to move in, buying a home is the better option. The time between the offer, payment and move-in will be less time than construction or renovations, which both require a lot of time and management.
Later Renovations
There may be some elements of the home that you would like to change, however, you can save over time and eventually make the changes you want.
Cons
Finding the Home You Want
If you have a particular house in mind it can be stressful looking at homes that don’t meet your specific set of requirements. It's not impossible, however, it's best to work with a real estate agent who can narrow down your choices and ensure you are looking at the homes you want.
Maintenance
Buying a home can come with certain issues, such as plumbing and electrical problems or older materials that can be harmful such as asbestos. It’s important that you ask about these issues before making an offer.
Building a Home
Building a home comes with its own set of benefits and problems. Here is what you need to know:
Pros of Building a Home:
You Can Create Your Dream Home
If you build your own home you have the ability to create the exact home and design that you want. This is a great option if you have a specific design and style in mind.
Less Maintenance
With a new home, there are fewer maintenance fees to deal with since the house has newer materials and furnishings.
Less Competition
There tends to be less competition for land than houses so you are able to avoid bidding wars and the time required to compete for a home.
Cons
It can be costly (Depending upon cost of materials)
When buying land it's important that you factor in both the cost of the land itself and the cost of building the home. Many land buyers tend to make this mistake and this results in years of an empty plot or a halfway-built home.
Factor in all construction and approval costs and maintenance fees before applying for a mortgage.
Time
Building a home can take a lot of time. Construction, waiting for WASA and T&TEC approvals and more can take longer than expected which can delay your moving-in plans. It's important that you be patient with the process and consider how long it can actually take.
These are just some of the factors you need to consider when buying land or a home. What is important is that you make the decision that makes the most sense for you financially and for the home that you want to have!
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