Building a House Vs Buying a House
Buying an existing property or building a house of your own depends on some factors which you need to weigh carefully. Each of these two options has its benefits and drawbacks. Building a house, for example, can be time-consuming but can also be less expensive sometimes.
On the other hand, when you buy a house, you’re limited to the available inventory. You’ll have a few options for the type of house you’d like to purchase.
The best choice for you will come down to your preferences for cost, time frame, and a few other factors.
Differences between Building a House and Buying One
| BUILDING A HOUSE | BUYING A HOUSE |
| The new 3-Bedroom bungalow house has a median price of N7 million, while the New 5-Bedroom duplex has a median price of N20 million. | The existing 3-Bedroom bungalow house has a median price of N15 million (land included), while an existing 5-Bedroom duplex has a median price of N45 million (land included). |
| On average, it takes seven months to build a house. | It takes a few weeks to close a deal on an existing house. |
Note: Prizes may vary by house size and from place to place.
Benefits of Building Your House from Scratch
Creative control
If you care about having creative control over many of the exterior and interior features of your home, including the floor plan, countertops, cabinets, backsplash, flooring, and more, it might make more sense for you to build your home from scratch rather than buying a house.
Drawbacks of Building Your House from Scratch
Consider the time and money you’ll spend
The first and (probably the most important) thing to consider before building a house is knowing exactly what you’re getting yourself into. Building a home can be a rewarding journey, but it takes alot of time, money, and patience. Depending on the size of the home, the process can take anywhere from seven months to a year or more.
There’s also the financial side to consider as well. The average cost to build a house varies by size and location, but generally, you can expect to pay anywhere from N10 million to N25 million. And don’t forget the other cost of buying the land you’d build on.
The following is a breakdown of some of the major expenditures involved in building a new house
| Cost breakdowns for a 3-Bed median bungalow building | ||
| JOBS | DESCRIPTION | AVG. COST |
| Foundations | Excavation, concrete, and retaining walls | N700,000 |
| Framing | Sheathing, trusses | N1 million |
| Site Work | Architecture, permit fees, inspections | N300,000 |
| Exterior Finishes | Roofing, windows, and doors | N1 million |
| Interior Finishes | Drywall, flooring, insulation, paint, lights, appliances | N1 million |
| Major Systems Rough-Ins | Electrical, HVAC, and plumbing | N1.2 million |
| Final Steps | Driveway, landscaping, clean-up | N1 million |
| Other | Miscellaneous construction expenses | N500,000 |
| Cost breakdowns for a 5-Bed median Duplex building | ||
| JOBS | DESCRIPTION | AVG. COST |
| Foundations | Excavation, concrete, and retaining walls | N1.5 million |
| Framing | Sheathing, trusses | N1.5 million |
| Site Work | Architecture, permit fees, inspections | N500,000 |
| Exterior Finishes | Roofing, windows, and doors | N3 million |
| Interior Finishes | Drywall, flooring, insulation, paint, lights, appliances | N4 million |
| Major Systems Rough-Ins | Electrical, HVAC, and plumbing | N3 million |
| Final Steps | Driveway, landscaping, clean-up | N2 million |
| Other | Miscellaneous construction expenses | N1 million |
You should note that the average cost labels above are for a median house (not too small nor too big).
Benefits of Buying a House
Saves time
One of the immediate benefits of buying a house is that there is much less of a lag between when you buy your house and when you move in. The average time to close a deal on a home is two weeks. Closing in less than two weeks might be attractive to a buyer who doesn’t have seven months or more to spare waiting for their new home.
Drawbacks of Buying a House
Cost of Remodeling
Sometimes, buying a house does not give you the luxury of choosing your desired fittings or materials. You may decide to modify the house, and this can often translate into an involved home improvement project, which might prolong your move-in timeline. Therefore, buying a house may also means more money. Remodelling costs can run from N7,000 to N40,000 per square meter, depending on the size of the spaces you may want to modify.
Older Appliances
When you buy a house, you may likely have older appliances versus a brand-new set in a home that you build. Overall, you should expect that your maintenance costs in an existing house could add up much more quickly.
Conclusion
A lot goes into buying a house, and each person’s priorities, budgets, and timelines differs. Your budget, aesthetic preferences, patience level, and willingness to take on your remodelling projects will determine your choice in choosing whether to build or buy. Remember, the prices used in these write up are subject to changes. Also, the price of land, building materials and even the cost of labour vary from place to place.
If I have missed an important point, please use the comment section below.
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