The pros and cons of buying versus building your dream house

The debate between buying or building a home is an ongoing one, with no clear winner. Both options have their pros and cons that depend entirely upon your personal circumstances and preferences.

Of course, before you make a decision, you should weigh up both options and see what will best suit your needs and priorities. Here are the pros and cons of building a house compared to buying an existing home:

Buying an existing house

THE PROS

It’s more convenient

Buying an established home is often more convenient than building one. All you need is a loan pre-approval to start looking for homes that match your taste and budget.

This often gives you more choice in terms of location, as empty lots of land in key locations are hard to come by. An established home may be closer to infrastructure such as transport and shopping malls, and gives you the option of moving in immediately.

You know what to expect

Because you can’t conduct a building inspection when you build, you won’t know what problems might arise later on – such as a builder cutting corners or a local termite problem. If you’re buying, a pre-purchase building inspection of a house should reveal any potential issues you might encounter.

Buying a home also means you’ll likely be living in an established neighbourhood. This means you can check out public transport, local schools, supermarkets and cafes nearby.  

THE CONS

Less design flexibility

It’s unlikely to find an established house that’s 100 percent to your liking – there will always be a thing or two that you’d like to change once you purchase the house.

However, if you like the location but not the floor plan, it could be an expensive ordeal, as changing the layout of an established home is not possible without undertaking a major renovation project.  

Legacy issues

An existing home is dated and has been lived in, there may be issues with wiring or plumbing or pest infestations that could cost you dearly down the line. It is, therefore, highly recommended to get a pre-settlement inspection done by experts to discover any major problems before you sign the dotted line.

Building your house

THE PROS

More design flexibility

Building a home means you can design it according to your specific needs and tastes. This offers benefits like improved energy efficiency – thanks to new fittings and equipment in line with the latest energy standards.

Cost

Cost is another major factor that will affect your decision, but not the only one. In certain states, it may turn out to be cheaper to build your own home but what you save in money you might spend in time, overseeing the construction process and liaising with your builder.

Besides, a new home is often worth more than its build cost, leading to higher capital gains for some homebuilders.

THE CONS

It’s less convenient to move

If building, you won’t be able to move in straight away. You’ll need to plan where to live in the meantime and how much it will cost. If you can move in during construction, you’ll likely be surrounded by noisy and unpleasant construction.

Getting stuck with a bad builder

Selecting the right builder for constructing your home is crucial. Being stuck with the wrong builder can lead to unnecessary delays, extra costs and cheap quality, as well as, a lot of headache, taking away the joy from the process of seeing your dream home being constructed. Make sure that your builder is reputed, licensed and insured as per your state’s requirements.

Taking the next step for your dream home

While both the options have clear benefits and drawbacks, you should choose the one that is most closely aligned with your goals. So, if you are looking for a home near your workplace and wish to move in immediately, purchasing a house could be a good option for you.

On the other hand. building a new home can be an exciting life experience – that’s why it’s so important to choose the right builder. At PNL Developments, we listen carefully to your lifestyle goals to help you create your dream home.