Building vs Buying a Home - Which One is More Cost-Effective?
When moving houses, most people will have to choose between building vs buying a home. There are lots of things to consider in both cases, and it can be hard to decide which one fits you and your family’s needs best.
In this article, we'll explore the pros and cons of each option. We will also look at the most recent price statistics, so you can easily make the best choice for yourself.
Should you build a new home?
Building a new home is often the go-to choice for people with a clear vision of what their dream home looks like. Let's have a look below at the benefits of a new construction, as well as some of the most common challenges one might face:
Pros of Building a New Home
Complete customisation
When you build a brand-new home from the ground up, you get to be involved in the process every step of the way, from initial designs to all the stages of construction. With Ray White Builders in charge of your new build, you can also be sure our contractors will listen to your needs, and take any changes you want into account.
Overall, a new home build will let you have a lot of control over the end product, making it easy to achieve your dream home.
Energy Efficiency
Another benefit of building newer homes from scratch is being able to take full advantage of the newest technological developments. This means your home can be as functional and energy efficient as possible, saving you lots of money on bills in the long run.
Potential for Saving Money
If you’re moving homes, you’ve probably wondered at least once how much it costs to build a house in the UK.
While there are a lot more moving parts to consider when building your own home, there will also be lots of opportunities for reducing costs. You will have a say in the materials used so that everything stays as close to your original budget as possible.
To save money, you can also join in on the painting, decorating, landscaping, or any other DIY projects needed.
Low Competition
Another great benefit of building your own house is that there is way less market competition for new plots of land than for pre-built homes. You will have an easier time finding the perfect plot of land for your custom-built home, without dealing with competitive bidding or price hikes.
Cons of Building a New Home
Longer Timescale
The main issue with building a custom home is how time-consuming it could be. On average, the building process will take anywhere between 9 to 12 months, not including the time involved in buying land, designing and planning.
The timescale can also quickly change if there are any unforeseen delays such as cash flow issues, extreme weather, or high-quality building material shortages.
Limited location choice
One of the downsides of purchasing a new plot of land is that the location might be less than ideal. Most urban areas are already overcrowded, so you'll likely need to look into locations further outside the city.
This might be a big issue for those who rely on public transport, but if you have a car or prefer greener, quieter areas, then you're likely to find the ideal place for your new home even in more rural areas.
More Overall Effort
It's no secret - it takes a lot of time and effort to take your dream home from vision to reality. There are lots of details to keep track of, and there might always be unexpected costs no matter how well you plan your budget.
When choosing a single company like Ray White Builders to deal with everything from designing and outsourcing materials to flooring, roofing, and internal works, there is a lot less stress and less management on your part. Not only that but there will always be clear deadlines and coordination, so you can save time and minimise disruptions.
Should you buy a new home?
Now that we've seen the pros and cons of building your own home, let's have a look at what makes buying an existing property an attractive solution to many people:
Pros of Buying a New Home
Shorter Timescale
A reason why people usually opt for buying a house rather than building one is simply the fact that it takes way less time. Oftentimes, people who move homes are on a tight schedule, as they might be starting a new job or welcoming a new member of their family.
Once you purchase your home, it's ready for you to move in - however, keep in mind that there might still be renovations and upgrades to do.
Less Decision-Making
Even when buying a home, there are still things to consider such as size, number of rooms, and amenities - however, most property websites will let you simply filter the properties that match your needs, so you can easily find what you're looking for without too much stress.
Better Location
When buying a pre-built home, you will generally have a much wider location range of places to choose from, including urban areas and rural areas.
Cons of Buying a New Home
Lots of Compromise
When looking for a new home to buy, it might be difficult to find a house that checks every box off your list. You might end up having to compromise on a few key features of your dream home if you're on a tighter timeline.
High Demand
The biggest downside of home buying is how stressful the real estate market can be. Generally, you will face a lot of competition for the best properties and might deal with multiple rejected offers before you find a home. This can add to the overall timescale and might mean even more compromises, to make sure you find a suitable home as quickly as possible.
Lower Energy Efficiency
Most homes for sale were likely built 50-100 years ago when energy efficiency wasn't as big of a concern as it is nowadays. You might find yourself needing to make lots of changes to the flooring, doors, and windows, in order to get older homes up to today's functionality standards.
Which Costs More - Building vs Buying a House
There are lots of things to consider when choosing between buying or building your new home, but perhaps the most important thing on people's minds is the overall cost. Both options will be a big investment, but is it cheaper to buy or build a house?
According to Checkatrade, the total cost of building a new house in 2024 is quite varied:
According to Zoopla, in July 2024 the average cost of buying a property of any type reached £265,600.
Generally, the costs for buying a home will fall somewhere within the price range of a home build. That is because there is a lot of money-saving potential when it comes to house building, which can take the overall price down and match your budget better. Even when the costs are similar, a lot of people choose to build their home due to how versatile it can be.
Building a Home vs. Buying - Which One to Choose
So, should you build or buy - the choice greatly depends on your own needs. If you're on a tight timeline and don't have too many requirements in terms of overall design or location, buying a home could be the easiest option. However, building from scratch will allow you to have full control over the end product, so you can easily achieve your dream home.
Ray White Builders provides expert home-building services that balance durability and longevity with affordable prices. We'll be with you every step of the way, taking care of all the hard work while you share your vision with us. Contact us today and let's bring your dreams to life together.