The age-old dilemma of a to-be homeowner: To build a house or to buy it? No matter whichever option you choose, you will end up investing a significant amount of your time, money, and effort either in designing a perfect home or searching for the ideal one to buy. Before signing a deal or laying down your funds, you must be wondering are you making the right choice?
Zarea is back with its expert insight to help you make an informed decision. In this article, we will lay down the potential pros and cons of buying an existing house vs. constructing it.
Convenience vs. Customization
The biggest advantage of buying an existing house is convenience. A real estate agent can streamline the entire purchase process for you, from choosing the desired property to finalizing the deal. A real estate agent will guide you, help you in negotiations, and support you in paperwork. Despite the tedious process of house hunting, which includes financing, house visits, making an offer, house inspection, and closing the deal, the convenience of moving right away is worth considering. This is also one of the primary reasons why some people prefer to buy an existing house rather than waiting for the construction of a new house.
Some of the questions that you need to ask yourself before deciding are that you are looking to settle in an established neighborhood? If yes, buying an existing house is far more feasible for you as pre-owned houses are usually situated in mature localities. On the flip side, this might also mean compromising your personal style and preferences. It is very hard to find a pre-owned house that ticks off everything that you desire.
In many cases, the condition of the interior and exterior is also not up to the mark, especially if the house is quite old. This can result in additional costs of renovation. Old houses can also be troublesome in terms of functionality as many of their features are obsolete with time. However, it totally depends upon your personal preference, and some of the older houses are architecturally very captivating.
On the other hand, the biggest perk of building a new house is getting everything you want according to your budget. You can easily incorporate special features into your house. Contrary to popular belief, building a new house is 20-25% more cost-efficient than buying an existing house of similar size. You can cut down costs where you wish and pour in money where you really want to. You would be paying for the cost of land and construction, unlike an existing house where you are also paying for profits due to real-estate value going up. However, it is important to note that if you opt for a luxurious house in an upscale area, then building a home from scratch can be a costly affair.
A newly-built house fully laden with advanced features has more property value than an older house with outdated features. If you want a higher return on investment, then a new house can bring you more profits than an older one.
Buying a property was never this easy! In recent times the housing loans from banks have made the dream of owning a house come true for many. Various financial schemes are being offered these days. You can sign up for the one that is suitable for you and pay it off in installments. However, there are a few important points of consideration if you get a loan for your house.
If you plan to buy an existing house, you will require to get a single loan. But if you are getting a loan for constructing a house, then you will require two loans. One for purchasing the land and the other one for construction of the house. Signing up for two loans can be a bit trickier and can even cost you more. Also, it will require a longer approval time than a single loan.
Buying an existing house or constructing a new one depends on your personal circumstances and choice. There is no clear winner between the two as both have their own pros and cons.
Do you want to learn more about real estate? Stay tuned with Zarea. Zarea is your go-to place for all interior design and construction industry-related queries. Now you can also shop online all the high-quality construction and finishing materials in one go on Zarea. Our rate list will give you insightful information that will cut short the tricky price comparison process in the market.