Monday, December 15, 2008

Buy a New Home or Build Your Own Home?

When planning to finally invest in your own new home. There are two ways to go about it. This is either you buy a new one or build your own. Here is my perception on the advantage and disadvantage of each alternative. My partner had a discussion about this when we were planning to move to the U.S. a few years back.

Build your own home:

Plus points
  1. When you are on tight budget, be able to prioritize the resources needed for your New Home Construction.
  2. Get the right people for the job and may even cost cheaper.
  3. Execute your own design preferences. Like a 3-floor house with attic.
Minus points
  1. Underestimate resources required and won't be fully finished as you originally projected.
  2. Hired contractor not able to do the job - like the smooth wall finish you desire.
  3. Design not feasible. Discover later on that what you like is not possible or will prevent you from doing other stuff.
Buying a Home

Plus points:
  1. Explore as many options as possible through various websites (an example is First Time Home Buyers can go online and search for the option.
  2. Deal with professionals who already have the experience with this.
  3. Explore alternatives pre-made already by the developers.
Minus points:
  1. When what you see is not what you get. Review the contract well and protect yourself.
  2. Not all terms are discussed. Consult friends or professionals that had experience in home purchasing and get "what they wish they knew" kind of advice.
It was 1998 when we moved to our Quezon City residence. Unfortunately, I never really got the chance to take a picture of it and was never really proud to do so as it wasn't finished yet. A major paint job and it should all be done. Instead, I end up buying the land next door, acquire a day care business, and publish another book. I don't think that house of ours will ever get done.

With that experience, I guess saying that you can build a house from the ground up and spend less is an understatement. Although our relatives in the U.S. can use various websites to get the best quote. In Australia, the same can be said as the place we are living in right now was also searched and found online.

If I'll ever get the chance to buy a new home again, I'll be more practical about it and get properties where houses or condominiums have already been built and be spared with all the hassle related to construction. (Obviously, there was still no public Internet when we got our first land property)