attic, basement, deck, finished product, higher resale profit, lifestyle. children’s play area, loan to finance construction, Mohammad Shafi Jakvani, newly constructed house, poor workmanship, pre-constructed house, resale value, sunroom, supervising construction, unforeseen budgetary limitations
Moving into a new house is an exciting experience and the quest for that perfect house – whether buying or constructing one – is just as exciting. However, there are pros and cons to buying a constructed house versus having one built.
Factor in the following before deciding:
- Buying a constructed house usually requires a single loan from a bank. On the other hand, if you are planning to have one constructed, you will require two separate loans – the first loan to purchase a plot and the second to finance construction – which takes longer to process.
- The cost of building a house is 20 to 25% less compared to buying a pre-constructed one of the same size. However, if you are living in rented accommodation during the time it takes to construct the house (which can take anywhere between eight and 18 months), then factor in these expenses before making a decision. Don’t forget that if you choose to have a house constructed, you will have to invest a substantial amount of time checking and supervising the construction, which can be stressful at times.
- One of the biggest advantages of buying a constructed house is that you see the finished product and make a decision based on what you see. On the other hand, if you have a house constructed, the end result may not quite be what you envisioned. This can be due to shortage of the materials of your choice, unforeseen budgetary limitations at the last minute or poor workmanship.
- If you are having a house constructed, you can have it customised to suit your lifestyle. For example, you can include features such as a children’s play area, a sun room, a basement, a deck or an attic, depending on your requirements.
- The resale value of a newly constructed house is usually 12 to 15% more than an older one. This means that should you want to sell the house at a later stage, the resale will give a higher profit.
– Mohammad Shafi Jakvani
First published in the Real Estate Section of The DAWN National Weekend Advertiser on October 19, 2014.