Have you been thinking about buying your first property? A home is among the biggest, most important investments adults can ever make in their lives. That said, you can never rush the process. There are a lot of steps involved to make sure you’re making the right decision. Along with the costs, which may be the biggest factor to consider, you also need to think about all the other elements that will affect your purchase, such as property taxes, location, and market trends. Before getting into the contract signing part, there are obstacles you have to overcome.
Becoming a homeowner is a truly exciting prospect, especially if it’s your first time. But, here’s the question: should you buy an already existing property or start with buying the land first? While there are many house and land packages available on the market, is it smarter to buy a piece of land as your first investment? After all, compared to already existing properties, a newly built home appreciates much faster.
In addition, building a new house around Donnybrook or any other suburb means you’re going to be the first user of all the amenities it has. However, it’s definitely less cost-effective to build a house from scratch than buy an already built one. As there are pros and cons, it can be truly challenging to make the right choice.
Indeed, homebuying involves a number of steps, but it all starts with whether you should buy or build. Here’s a simple guide on the advantages and disadvantages of each option:
Building a Property
At first, many potential buyers may see this option as less beneficial compared to buying an existing home as it involves more work. You’ll have to do your own research to find the right land, and then you’ll need to contact architects and builders who will take on the construction process. You’ll have to attend a number of meetings and consultations with them in order to finalize all the elements that come with building a new property from scratch.
However, there’s one great advantage to building in favor of buying: You get to dictate exactly how you want your property to look like. This reason is enough for many buyers to choose this path right away, but there are other remarkable benefits as well. For example, if you’re building a new property, you won’t need to worry about the presence of toxic construction materials in many older home models, most of which have been completely banned by authorities. These include asbestos, lead paint, and mold. As the first owner, you can choose the most environment-friendly materials.
Buying an Existing Home
Two of the most notable advantages of this option are cost and convenience. After your lender has given you pre-approval, you can start searching the market and making a reasonable offer. If you work with a highly qualified real estate agent, the process will be a lot easier for you. They’ll be able to streamline everything, such as helping you find the most suitable property that fits your budget, making negotiations for you, and sorting all the paperwork involved.
As for the costs, buying an already built home is usually a better choice for you financially. When you’ve found the perfect property, you can use a mortgage calculator to estimate how much you’ll need to prepare.