Property: Buying vs building – things to consider



10-01-2019
Read : 11 times
The South African
Source

Many potential buyers find it hard to decide between having to buy an established home or having one custom-built. Here are some tips to help you out.

You are currently on the market to invest in a new home and contemplating whether you should buy an established house or start from scratch by having your home built from the ground up.

Investing in property, especially as a first-time buyer, could see you making one of the biggest investments of your life.

Both options come with pros and cons and when making your decision about buying versus building, there are several factors to consider.

Everyone will have their own reasons for choosing either to buy an existing home or to build one, but ultimately you need to make a decision that is right for you before finalising that offer to purchase or getting construction under way.

Buying a home Buying an established home in an existing neighbourhood could see you enjoying many benefits. The many advantages that come with buying include, but are not limited, to the following:

Considering security and insurance premiums, when investing in an existing home in an established neighbourhood, it is less likely that your home will be surrounded by vacant land. Many buyers seek to move into a neighbourhood where there are usually people next door to make them feel more secure.

Potential buyers also seek to be closer to various amenities. Existing neighbourhoods usually offer the necessary major arterial routes, access to public transport, schools, shopping malls, hospitals etc.

Buying an established home is also a quicker process. Once the initial house-hunting is done, the bond is secured, and the deposit paid, buyers can often move in and start their new life, sometimes in as little as three months.

What to look out for when buying Buying a home is one of the most rewarding processes for many potential buyers, yet buyers need to make sure to look out for some aspects before buying an existing home:

When moving into a beautiful established house in an existing neighbourhood you might be surrounded by other homes that might be deteriorating and may have a negative impact on the value of your property. Watch out for broken fences and windows, neglected gardens and debris on the lawns.

Other elements to look out for are the design, layout and finishes of the house that may not be in line with your taste, resulting in you having to renovate and have more expense.

Remember that defects may also be invisible at the time of viewing and could result in costing you a lot of time and money in repairs. Ask questions at the time of viewing.

Building a home Moving into a new custom-built home of your own could be one of the best feelings ever. The many advantages that come with building a house from scratch include, but are not limited to, the following:

Choosing to purchase a home from a new developer in a new complex development could see your house be surrounded by various other new houses that are still well maintained and modern, helping to increase your property value too.

When having your home built according to how you want it, you are usually able to choose the layout, design, finishes and everything else according to your preference, leaving you with the home you literally always wanted.

Newly built homes usually require lower ongoing maintenance and running costs, making your expenses lower than when having to spend money on repairs.

According to the Stats SA 2018 mid-year report, North West is one of provinces where you can find the most affordable construction costs in South Africa. With reference to the data, building costs in North West amount to R10,130 per square metre (sqm) – R9,100 less than what it costs per sqm in the costliest province for construction, namely KwaZulu-Natal at R19,230 per sqm. So, if you want to build your own home and relocate at the same time, then North West might be calling you.

What to look out for when building Although building your own home comes with many benefits, there are a few things to look out for before you draw up that plan:

Vacant stands or new complex developments are usually on the outskirts of urban areas, which could have you far from necessary amenities that you might need at your disposal.

Building your own home, usually takes a lot more time than you might have bargained or budgeted for. It can become a race against time and could have your bank accounts performing double duty. Major additional expenses for an architect or engineer, land preparation or excavation with unforeseen ground formations, may also need to be considered.

Stands sizes in complex developments are generally smaller than that of houses built in established older areas.

Whether you choose to build or buy your new home, make sure that you carefully consider all the factors involved and remember that the final decision, ultimately lies with you!

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