To Build or To Buy?

Pros & Cons of Building vs. Buying

Building a House

Pros:

•     You get to fully customize the home to meet your needs and preferences
•     You can choose the location of the home and build where you please
•     With a new build, you know that everything is new and won’t (or shouldn’t) need replacing anytime soon

Cons:

•     Building a home is more time consuming than just moving into a pre-built home
•     You may have to deal with unforeseen costs and could end up going over budget with the new build
•     New builds involve a lot of project management that can be overwhelming

Buying a House:

Pros:

•     You know what you’re getting and can move in as soon as you close
•     You are likely buying in an already established neighbourhood with amenities and schools nearby
•     It’s easier to stick within a budget, as you can negotiate or walk away if the price is too high

Cons

•     It is more likely that there will be repairs or maintenance that needs to be done, especially in older homes
•     You may have to compromise on certain features or wants that you have, depending on what’s available on the market at the time
•     There may be hidden issues with the home that you didn’t notice before buying, or that only make themselves known after buying

The Cost of Building a House 

The cost of building a home is not as straightforward as buying one outright. Here are a few expenses you’ll need to consider when building a home.

Buying Land

Before you can even consider building, you’ll need to purchase land on which to build the home. If you’re buying vacant land in a prime location, the cost is likely to be high. Rural pieces of land can be cheaper than plots closer to cities, but you’ll have to factor in if you’ll need to develop the land. This can include costs such as bringing utilities to the area, changing the zoning, etc. Check out our guide on buying vacant land.

Architectural Costs

You will also need to hire an architect to plan the design for your home. The cost will vary from architect to architect and will also depend on the complexity of the project and how many revisions are needed.

Permits & Inspections

Before you even begin building, you’ll need to confirm you have all the proper permits. Throughout the building process, regular inspections will also have to be conducted.  

Materials

Depending on what materials you intend to build with, the costs can add up quickly. You’ll need to factor in costs from the materials needed to build the foundation of the house all the way to the final touches, such as fixtures.

Contractor & Labour Costs

Once you actually begin building, you’ll need someone to oversee the project and ensure things are being done properly. This is where a contractor will come in, and their fees along with the cost of labour will likely be one of the costliest parts of the building process.

Unforeseen Expenses

It’s incredibly likely that you’ll be faced with unforeseen expenses during the construction process. You may need more materials than you realized, have to put off construction due to weather, unexpected issues with the building site—all these things can increase the final cost of the project.