Buying a house is your best defense against a poor financial future. But in this day and age is it more cost effective to build or buy a new house? One really has to consider all options mainly due to the money involved.
Lets take a quick look at the different options:
In some cases it can be remarkably cheaper to buy a house already built and spend a few thousand renovating it. If you are handy around the house this will save you even more money. In this instance you really need to find a run down house in a relatively good area. Sometimes it is only a matter of cleaning and painting to bring a house back to it’s former glory.
Building a new house does have it benefits in that you won’t need to renovate a single room for at least the next five years. Borrowing money from the bank for a new house does have it downfalls. You generally need a much higher deposit. And you also need to make sure that your building company is trustworthy and not in financial debt. Should this particular building company go into receivership you will still need to repay the debt back to the bank. All building contractors require some sort of deposit before they begin building your new home. In some cases this can be up to $50,000 or more. It all depends on the total cost of your project.
In some ways building your own house almost seems to be more of a nightmare than anything else. It can work out to be a lot more cost effective if you buy a house already built!