Should you build or buy your first home?
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Most people dream of owning their own home at some point. Living in rented is OK, but sooner or later the lack of freedom to treat the place as your own will begin to grate. It will probably take quite a while to save up a deposit, but when the time comes and you have enough money to persuade a lender to finance your first home, is it better to buy an existing property, or build one from scratch?
A home is a huge investment, so it is sensible to consider your options carefully. Most first time buyers have barely enough money to cover the mortgage let alone take out UK Home and Personal Loans to pay for extras.
Buying an Existing Home
The main advantage of buying an existing property is that it offers convenience. Once you have a mortgage in place, you can take as long as you like to find the perfect home of your dreams. Since you don’t have a home to sell, there will be nobody chasing you to hurry up and complete. For many people, this is an ideal scenario.
The main disadvantage of buying an existing property is that it probably won’t be to your taste. Even if you buy from a builder and have some say in the finishing touches, the design of the property is not yours. Older properties come fully decorated and with flooring already in place. You may like the owner’s taste, but in most cases, new owners prefer to start with a blank canvas.
Property development and renovation programmes are immensely popular and millions of people tune in to watch TV shows like Grand Designs. We love to see the aspiring owners end up with beautiful, bespoke homes after enduring one catastrophe after another. However, building a home from the ground up is not for the faint hearted. There is an awful lot that can go wrong and unless you are an excellent project manager or willing to hire someone who is, you could end up in dire straits.
Financing a Self-Build
There is also the issue of finance. It is a lot harder to secure finance for a self-build project. Lenders are more wary since there is a lot more that can go wrong. Money will only be released in pre-determined stages and if you go over budget, there will be trouble ahead.
A Bespoke Home
On the plus side, if you elect to build your first home, you will end up with a property that meets your requirements perfectly. Building a home is also better value for money and most people find that the finished property is worth a lot more than the money it cost to build. A new property built to your personal specification is also less likely to have any issues, whereas older houses tend to require more maintenance.
Weigh up the pros and cons of each method and pick the one that best suits your current circumstances. Either way, you will end up with a home you can call your own.