Building a Home vs. Purchasing a Home

by Ronel Forbes

July 29, 2022

Who doesn’t fantasize about having a home built from the ground up? This way, you can have everything personalized to your own needs and preferences.

Despite the obvious appeal of building your own home, there are some drawbacks. When determining whether to build or buy a home, you must weigh the benefits and drawbacks of both options.

A house hunt normally takes into account factors such as location, price, market trends, property taxes, homeowners association fees, and the quality of the property. In addition, each buyer usually has a wish list that includes both specified necessities (i.e., what the buyer must have) and desires (i.e., what the buyer wants) (the features the buyer would like but could do without if necessary).

While there are various essential decisions to make during the home-buying process, one of the first is whether to look for an existing home or create one from scratch.

Each path has its own set of benefits and drawbacks. Here’s a look at both sides of the argument.

The Benefits of Building a House

• You have complete control over the design.

Building your own home according to your preferences is one of the most enjoyable aspects of the process. You will choose the number of rooms, the size of the house, and even the layout of your kitchen.

• You have complete control over the place.

You can build a house anyplace you choose, whether you’ve always wanted to live in the city or somewhere quiet.

• In the future, you’ll have to deal with less maintenance.

For a few years, one of the most obvious benefits of building your own home is that repairs and maintenance would be limited or nonexistent.

The Drawbacks of Building a House:

• It’s quite costly.

Building a home from the ground up will be more expensive than buying one. As a result, you’ll need to save more money or take out a larger loan.

• It takes some time.

A house takes a long time to construct. It might take months to plan, obtain all necessary permits, and construct a home. This implies you’ll have to find a place to live in the meanwhile and pay your rent.

• The periods of planning and construction can be extremely demanding.

When constructing a home, numerous factors must be considered, including the land, construction materials, labor, and furniture, among others. Managing all of this while staying on track with your budget might be taxing on your mental health.

The Benefits of Purchasing a Home:

• There is a shorter turnaround time.

You may move into your freshly purchased home as soon as you choose, unlike construction projects that take months or years to complete. This makes it the most convenient solution for individuals who are short on time.

• You’ll save money this way.

Buying a house rather than building one is less expensive and allows you to bargain more.

• You have the option to personalize.

Many people prefer to build their own home rather than buy one because they believe it will be more customizable. That is not the case, however. Even if you spend extra money, you can still customize a purchased home to meet your preferences.

The Drawbacks of Purchasing a Home:

• Finding the right home can take some time.

Purchasing a home is a significant investment that should not be taken lightly. Although you might strike it rich and find the perfect property in your first week of looking, odds are you won’t.

• It can take months to find the proper home.

When buying a used home, you can run into electrical or plumbing problems. There’s a chance you’ll have to deal with serious maintenance concerns.

• You must submit bids.

Prepare to face competition depending on the house you wish to buy. This could include a bidding war, which will cause your expenses to skyrocket.

How much does it cost to build a house in the Philippines?

Your home is one of the most significant purchases you will ever make, so it should come as no surprise that it is expensive. Knowing how much it will cost can help you set realistic expectations about how much money you will need.

Most contractors calculate costs using a cost per square meter method, which varies depending on the type of finish you choose.

For example, a rough finish home with the essentials such as cement floorings, corrugated roofs, jalousie windows, and unpainted concrete walls can cost Php20,000 to 23,000 per square meter.

A basic finish with ceramic or granite tiles, painted walls, and windows with aluminum frames, on the other hand, can cost between Php25,000 and Php30,000 per square meter. The cost ranges from Php35,000 to Php40,000 per square meter if you want a high-end finish with an upscale vibe, which can include accent wall panels, pin lights, and coated granite tiles.

Keep in mind that these expenditures are solely for the building. Movable furniture, fencing, and landscaping are not included.

Costs of house construction are determined by a number of factors

When building a house, it’s important to be aware of the complications that can effect the cost. Below, we’ve compiled a list of things to think about.

Finishing options
Construction timeframe
Location
The cost of labor

Final Thoughts

Even if you start out to find the ideal existing home, you may wind up preferring to construct your own to achieve exactly what you want. On the other hand, you can plan to construct and then decide that an existing home is a better fit.

Working with a knowledgeable and experienced professional whether a real estate agent or a general contractor can assist guarantee that the process goes as smoothly as possible in either scenario.