Deciding whether to build or buy your house is a big decision. The path to homeownership is different for every family. There are different reasons why a person may choose one option over the other. The key to knowing whether to build vs buy is understanding the factors that influence each option and considering your goals and needs.
Making a choice between building your dream home or buying an existing one and renovating it to suit your liking can be tough. A good place to start is to ask yourself some important questions. Are you interested in designing your new home and having a say in every aspect of it, or would you rather purchase a move-in ready home? Is building a house cheaper than buying? How soon do you want to move into your new home? How much time do you have to devote to the process? What is your budget and where do you want to live? All these are all factors that need to be considered carefully. To help you make the best decision for your family, we’ll share the pros and cons of each option and discuss some important things you need to consider in your decision.
Benefits of building a house
Customization and personalization
The idea of a home made just for you is one of the greatest selling points of home builds. Building a house vs buying allows you to design the space exactly the way you want it. You won’t have to settle for the design choices of the previous owner, and you’ll be able to outfit your house with trending features. You’ll get to choose your floor plan, appliances, paint colour, the number of rooms – every aspect of your home.
A home that reflects your personal style and caters to your lifestyle is a dream for many. Plus, there’s a certain level of satisfaction that comes with being intricately involved in the construction of your home. So if you are someone who enjoys starting a project from scratch and planning every small detail, building a home may be the best option for you.
Energy efficiency and modern features
When you are building a house, you can be selective about the type of systems you incorporate into your new home. Older homes were not built to meet the higher standards of energy efficiency that are prevalent today, however, newer homes are. They are built to meet EnergyStar and WaterSense standards. This is a huge advantage because trying to upgrade the systems in an old home to meet these new standards is very costly.
Even if you can afford it, the design of the existing home may restrict the possibility of achieving a higher level of efficiency. Building a house vs buying means you’ll be able to install energy-efficient systems that offer superior heating, ventilation, cooling, insulation, and air filtration. This will result in better indoor air quality, which will make a big difference, particularly if someone in your household suffers from asthma or allergies.
A new build you design yourself allows you to incorporate modern features that offer convenience through smart home technologies. These make it possible for you to automate certain tasks and control appliances remotely. You can adjust the temperature of your refrigerator, air-conditioning or heating directly from your phone.
Set a timer to turn your house lights on and off, open and close windows remotely or adjust your sprinkler schedule based on the weather. Smart technologies offer a level of convenience that makes it easier for busy people to manage their homes while away.
Warranty and new construction advantages
One of the best things about a new home is that everything is new. There will be no wear and tear concerns or repairs to worry about for a long time. Your kitchen appliances, roof, doors, windows, etc., will all be new. And the fact that your new home will come with a builder’s warranty that typically covers the workmanship and the materials used for your windows and your HVAC, plumbing, and electrical systems is an added bonus.
Repairing these systems in older homes is costly. Building your own home can give you peace of mind knowing that if anything goes wrong with these major systems, you are covered. In some cases, the standard builder’s warranty will cover up to1 year for workmanship. We offer up to 5 years warranty on workmanship, which offers huge financial security.
Advantages of buying an existing home
Convenience and time considerations
Purchasing the right home for your family is far less time-consuming than building one. Building a home takes a lot of time, and there may be additional delays due to waiting times for brand-new appliances or challenges in the supply chain.
A lot of work goes into building a new home. The process will require you to spend hours sifting through different design options and you’ll need to make many important decisions about your new home project. For people with limited availability or who are not interested in that level of involvement, buying an existing home is a better choice with fewer hurdles. Once you are approved by a lender, you can begin the process of finding a real estate agent who can shortlist properties for you based on your criteria. You’ll only view those that meet your specifications, so that will save time. A realtor will also help with negotiations and make sure all the necessary paperwork is completed. If your offer is accepted, you will be able to close and move into your home soon…
This is a huge advantage for buyers who prefer to have the process streamlined and would like to move into their new home quickly. While you may not be able to buy a home that has all the features on your wish list, you can prioritize what features are most important to you and find a home that has some of your top items. Keep in mind that you can update the rest of the home to suit your liking over time.
If you are moving to a new location for work, have children who will be starting school soon or need more room for a growing family, a ready-to-move-in home may be the best choice for you. If you are thinking about buying a home, you may be wondering: Is it a good time to buy a house in Ontario? The answer is yes. Homeownership has become a reality for many families and has proven to be well worth the investment.
Cost comparisons and financial considerations
Is it cheaper to buy land and build a house? Whether you build or buy your home, there will be significant costs. To build a home, you’ll need to consider expenses like hard and soft construction costs, purchasing land, and paying various contractors including an experienced builder who knows how to build a house. A lot of money will go into preparing your home for your family. On average, the cost to build a house in Ontario is roughly $145-$265 per square foot, although the cost can be much higher. This heavily relies on where you plan to build your home, the local regulations, the cost of labor, and the property value of the area. You also need to factor in the complexity of construction on the lot. If the ground on the lot is uneven, rocky, has lots of trees or is otherwise difficult to excavate, the labor costs will be increased.
Estimating the cost of building a house can change as the project progresses due to unforeseen issues along the way. This means you’ll need to have enough cushion in your budget to cover these unexpected surprises. You’ll also need to factor in the cost of permits, and possibly demolition if there is an existing home on the lot.
However, there are times when it is cheaper to build a house than to purchase an existing one. If you are purchasing an older home that needs significant renovation before you can move in, building your home may cost less.
Buying a home has an advantage in that you know what the price of the home is upfront. This can help you make an informed decision based on the financial resources available to you. There are additional costs like hiring a realtor, closing costs, down payment, and other expenses you need to be aware of when buying a home.
An adventure to building a home is that you may have access to mortgage subsidiaries through your builder, and these can be tailored to your unique circumstances. They are often willing to work with you to cut down on closing costs and interest rates. Unfortunately, you will not have this opportunity when purchasing an existing home. You will need to sort out your financing on your own with your bank.
Factors to consider in decision making
Budget and affordability
As you decide what the best option for your family is, one of the key things you should assess is your financial situation. Know what kind of flexibility you have financially and establish a budget so you can plan accordingly. How much money you have access to for a new home will determine what your options are. When building a house, costs can become increased as the project progresses. So if you are working with a tight budget, you need to determine how much money you have access to and whether building a home is the best choice for you financially.
That said, an existing home may not be the right fit for you. If you are buying an older home, chances are you may need to do substantial renovations that can turn out to be a very expensive project. It’s important to weigh the pros and cons of each option.
Timeline and project management
As we mentioned earlier, building a home takes time and there are often unexpected delays that come up. If you have a hard deadline and need to move into your house sooner rather than later, building a home may not be ideal for you. Additionally, building a home requires heavy involvement and collaboration with your builder. You’ll need to be completely dedicated to the project and make decisions every step of the way.
It will be a very time-consuming project. Being realistic about your availability and asking yourself whether you want to be involved in the building of a home are important questions. And the answers to those questions can help you make your decision.
Location and land availability
Where you live is important and impacts your quality of life. Building allows you to handpick a location that caters to the needs of your family. But to build a home, you’ll first need to buy land in the area you want to live. The availability of land in your desired location is not guaranteed, so there is a possibility that you may not be able to build a home at the location of your choice. The location also influences the cost. If you are planning to build a home in a prime location, there will be plenty of competition for land in that area, which may drive up the cost of a lot.
One of the steps to buying a house in Ontario is identifying the right neighbourhood for your family. In considering an ideal location for a home, think about what your family’s needs and lifestyle are. Your neighbourhood should support these needs. Do you need a home closer to your job to cut down on commute time? Or do you want to live in a small, quiet community surrounded by nature? Are there good schools for your children? Is it a safe area? Think about what amenities are important to your family and look for a location that provides them.
Personal preferences and long-term goals
Lifestyle needs and future plans
A home is a huge investment, so you need to ensure that your house will continue to serve your needs at least for the next five years. Envision the life you want for your family and incorporate that into your house plan or find an existing home that offers what you need. Do you work remotely and need a quiet, dedicated workspace? Buy a house with a basement that can be used as a home office.
You need a home that is a good fit for your family today and in the future. If you decide to custom-build your home, your family’s future needs should be factored into your choice of home as far as possible. This requires a lot of planning and consideration. Whatever goals you have as a family must be supported by your new home.
When you’re ready to build or buy a house, call us
The decision to build vs buy a house requires a lot of thought. Your goals, financial resources, lifestyle, preferences, and how soon you need to move into your home are all things that should influence your choice.
Building a home gives you the opportunity to customize every square inch of your home. Buying, on the other hand, is quicker and more convenient.
NICKS Development has helped many homeowners move into their dream homes and we’re happy to extend the same services to you. Contact us today and let’s get started on your new home!