As we grow up, we all dream of sharing a wonderful home with a person that we love and cherish dearly all the times, have kids with, face the various challenges of life, and enjoy it the best we can before we grow old together. For some of us, the extension of this dream is that the kids we bring forth, their kids, and the kids of their kid’s kids would still have a place to call home, perhaps many years after we’re gone. Simply put, the definition of a home can have a huge, deep, and relative meaning. But away from logic and back to reality, the real estate industry has hugely revolutionized over the past few years. In the wake of civilization, industrialization, urbanization, and technological advancements, houses have become an expensive asset to own. As a matter of fact, even those who live on a rental property will attest to it that the monthly/annual fees have been on the rise.
But it’s in human nature, and all of us are deeply focused on getting a place we can call home, a place we can call our own. And when it comes to this, you can buy a new house, build your own from scratch, or buy a home that was initially occupied and renovate it. Even for those looking to invest in real estate property, whether for resale or renting, the main options are the same.
So what’s the best option between buying, building, and renovating an already existing property?
If you have some money sitting ready in the bank or somewhere else and you need to acquire a home, buying a new (already built) property can be the best way to go. Or maybe you’ve just won a jackpot or you’ve secured a huge contract with a 500 company that gave you thousands of dollars in down payment for a major tender/contract. Or perhaps you received some inheritance money from a trust and you don’t want to keep the money lying in the bank. There are many instances where buying an already built home can be a great option. The major caveat, however, is the fact that if you’re a homeowner and you’d envisioned a certain design for your dream home, your options may be limited and you can even spend a lifetime searching for the home of your dreams.
Building Your Own Home
Borrowing from the last sentence on the previous pointer, we all have different or unique tastes and preferred designs when it comes to our dream homes. Yes, factors such as the size of your land, its location, infrastructure, local building codes, and the availability of resources may all affect the kind of home you can build. In the world that we live in, however, cost is one of the biggest factors to look at as far as construction is concerned, especially in a place like Perth, the Western Australia capital where median housing real estate prices have shown a stable trend over the past few years after skyrocketing hugely in the 5 or so years before 2014. According to the article “The Ultimate Guide to Building a New Home in Perth” from Novus Homes, the first thing to do when building a house is to decide how much it will cost you, and how much money you can borrow. When you weigh these two things out, it can be easier for you to choose a suburb, you can be able to come up with a design that best suit your capabilities, hire a good builder, and see your home construction project through without much of a hassle.
Renovating a Used Home
Used property is also great. In some cases, it can be cheaper, given that you’ll have some renovations to take care of. But you still can’t run away from the fact that real property appreciates in value. Here, you’re literally flipping a house for the money with someone else, and the big caveat is that you have to conduct research to determine whether or not anyone has a lien on the property. While at it, you’d also want to compare the amount of money you’d have to spend on buying and renovating it, against building or buying new property closer nearby before making the decision, which can be a tricky affair, especially for an investor who’s considering house flipping.
In a nutshell, each of the three options of acquiring property has its own merits and demerits. While getting a used home can be a bit cheaper than acquiring a new home within the same area or neighborhood, it could also spare you a considerable amount of money if you need to move in fast and renovate later on. On the other hand, building your own home may take more time and involve a bit of a lengthy process, but in the end, you’ll be left with a home that you’ve dreamt of in nobody knows how long. The best way to make a choice between the three options is to consider your budget, your credit/finances, your urgency, and your personal preferences… period!