The decision to build, buy or renovate will be determined by your personal circumstances, but you need to make an informed decision.
The pros and cons
Building — the pros
- You’ll have control over everything that will affect you on a daily basis.
- You’ll get to learn useful things about home construction as you monitor the process, and you’ll get a sense of ownership that comes only from watching your house take shape.
- If you choose correctly, you’ll have the expertise of the builder, contractors and architect to guide you.
- If you employ professionals, they will handle the paperwork for approval with local authorities, sub-contractors and suppliers.
Building — the cons
- Be prepared for the unexpected costs that occur in most home construction projects. You will have to pay for them.
- Building a house takes time; waiting for it to be completed can be disheartening.
- Finding alternative accommodation during construction can be costly. (If you can’t move out while you’re renovating, you’ll have to make peace with living on a ‘building site”.)
- Whenever a decision has to be made or a problem arises, you have to deal with it — daily. This can take its toll, unless you’re strong-minded.
- Building now is not as attractive as it was three years ago because building costs have increased significantly and building costs are now estimated at 20% higher than the average existing house price.
Buying — the pros
- You get to shop around and become a critical customer.
- You have the luxury of comparing different homes with different features until you find exactly the right combination at the right price.
- It’s a buyers’ market at present, so you can generally drive a tough bargain and get the best deal possible, especially in the case of a serious seller.
- You can take your time house hunting.
- As for moving in, if the seller agrees, you can move in straight away and pay occupational rent until the house has been registered in your name.
Buying cons
- If your needs are very specific, it could take quite a while to find a home that meets your criteria.
- As you did not design the house yourself, you may never find your ‘perfect’ house and have to make concessions regarding certain features.
- Be prepared to spend additional money on updates and repairs if the property needs some work.
- Looking for a new home and making an offer once you’ve found what you want can be stressful.
- You might need to act fast or make an offer that’s more than the asking price if you get stuck in a bidding war.