Many people in the U.S. have a goal to own their own property and purchase a home. Buying a house is one of the biggest investments that a person may make in a lifetime, so it is a decision that should be approached with much care. There are many good reasons to purchase an existing home – starting with the fact that it is less work on the front end. However, some people may wonder if it is cheaper to simply purchase some land and build their own home on that. So, which is really cheaper: building your own home or buying an existing one?
More Upfront Costs
Probably the biggest drawback to building a home is that it requires more funding upfront. If you are handling the design and construction yourself, you still need to invest a lot of time into the project, plus acquire permits and make sure the home is built to code. You can save yourself a lot of the stress by hiring planning services to do the design and work for you. This, too, costs money up front, and overall, building a home is likely to cost more than if you purchased an existing home somewhere else.
Advantages to Building
That’s not to say that designing and constructing your very own house is out of the question. There are many benefits to building a home as well. You have a lot more say in the layout of the home and can tailor it to your personal preferences. You can also rest assured that the home is brand new and no one else has lived in it before. You may have access to brand new appliances and take advantage of the latest home technology, whereas an existing home may require extensive repairs and, in some cases, upgrades to keep it livable. As with most property, you are also likely to see a good return on your investment with a newly built residence should you ever decide to sell your home.
Depends on Your Needs
Ultimately, deciding to build or purchase a home is a personal decision that only you can make. Purchasing an existing home is likely to be the cheaper option, and you can still get a nice return on your investment if you ever sell. On the other hand, although building a new home may cost more in the beginning, you also get many benefits and likely a good return on investment with owning a newer home. By researching the different home costs in your area and carefully examining your budget, you can come to the right decision for your situation.