Is It Better To Buy Or Build A House? All Questions Answered

A dream about a new house represents your vision for yourself for the future. This type of dream indicates that you wish to grow and strive for something more for yourself.  Having a dream of a new home has a specific meaning for you regarding your self-image and how you and others perceive you. However, if you have dreamt of building a new house, you will have to think about the following – ‘why build a new house?’ or ‘is it better to buy or build a house?’ or ‘is it cheaper to build a house or buy?’ or ‘What is best from buying vs renting a house?’

Let’s take a look at what’s good for you!

Build a New House

Whether To Buy, Rent or Build A House?

First of all, you may have to decide whether to buy a readymade home, build a new home or rent a house. Which is best for you? This question is not easy to answer. All have their own advantages and disadvantages and they also depend on various factors; including lifestyle preferences, present commitments (i.e. Income, Business, expenditure etc), priorities, size of the family, financial constraints, and your taste about the house.

Before you start the process for “Building the house”, you must ask yourself:

  1. Why not buy the ready one?
  2. Why not live in a rented house?
  3. Why do you want to change the existing house?

Building a new home requires time, money, and effort, but it can be rewarding, too. However, if you have ready cash, buying a house is an option that you must never ignore. If you are finding it hard to make both ends meet, then it is always better to stay in a rented house for a few more years till you save a reasonable amount to finance your own home.

Before You Take A Final Call

Once there is a thought that you want to build a house and not live in a rented home, you will have to be clear on many fronts.  If you are still confused about owning a house, read our blog on “EMI VS RENT” & “Buying vs renting a house

So, the things that you need to be extremely clear about are:

  • You no more want to live in a rented house.
  • You have enough financial arrangements to finance your new home.
  • In case you have to take a housing loan, you feel that paying an EMI is better than paying rent in the long run, as ultimately you will be the owner.

Why Should I Build a New Home?

There are so many reasons to build a house. Here we are going to list down few of them.

  1. Excessive Rent.
  2. Family is growing bigger and your present house is small for a comfortable living.
  3. Children are growing and require separate rooms for them.
  4. This is your second house and you want to earn income out of it.

You want to build the house on your parents’ ancestral land or in your ancestral village? Apart from the above, there can be many other reasons to build the house.

However, ask yourself the following questions before you decide to build the new house –

  1. Is it your second home or a vacation house?
  2. Do you want to build for investment or for renting? If you think about investment, buying a house and renting it out is the better option.

The next question that arises is; what is the best for you?

  1. Buying an existing or an old house.
  2. Buying a new (Readymade) house.
  3. Buying a new (Under Construction) house.
  4. Buying land and building a house.
  5. Building a new house as per your design, choice of materials and location or a piece of land owned by you or to be bought by you.

Knowing the build vs buy house or renting vs buying pros and cons is the only way to make an entirely satisfying decision. Here we have cited few basic pros and cons of building a house Vs buying a house.

Pros And Cons Of Buying Vs Building A House

Once you finally decide to build, the next question is –

Is It A Good Idea To Build A House Right Now Instead of Waiting?

How Do You Decide Where To Build A House?

Your vision of your home may be unique, and you do not want to make it look just as ordinary as any other home in the vicinity, then take a plunge and build your own home. However, if you are getting all the things that you want for your home in a ready house, then why waste your time on building the house?

According to our mentor Mr. Mahadev Desai (Founder & CEO of Gharpedia), buying a house is a wise decision instead of building it. Furthermore, there are many disadvantages of building a house compared to the benefits of building a new home that we discussed above.

Moreover, the budget for the Build or buy first home is the most crucial factor. If you decide to build a new house, your budget may go over for many reasons, i.e escalation in material price, increase in contractor’s rate, increase in consultancy charges, and many more. When you are going to buy a house, you are free from the tensions of being over budget or escalation.

We hope you find this blog useful in resolving your problem. If you have any further questions about your new home, please post them in the query section. Also, don’t forget to Subscribe to know our latest blogs.

Before leaving, you should read the following blogs, which will help you make a decision about your new home –

A Place to Call Your Home: Should You Buy It or Build It?
12 Reasons Why Buying a Property is Smarter than Renting

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