One of the big decisions that a potential home buyer faces is the choice between buying an actual house or an empty lot. While it might seem easy to decide when it comes to the price, there are other factors to consider. Here are some aspects that you have to keep in mind.
The Need for a Quick Home
When you are looking at properties for sale online, you are likely on the hunt for a place to move into. The decision to choose a property with an existing house is mainly to have a roof over your head as quickly as possible. With a vacant lot, the earliest time that you can move, even at the most basic home builds, is a few months down the line. That can even be risky since the construction is on a tight schedule. If you cannot wait that long, then you have to buy an existing home. Meanwhile, those with existing houses can afford to wait for the house to be built, so it is less of a concern for them.
Another factor to think about is how the property can build value for you as a long-term investment. An already existing house has some worth already. The years of upgrades and improvements add to its worth. If you plan to add more, the boost is not going to be much. But empty land has a lot less value attached to it. Building a house on it makes its worth skyrocket. If your purchase is meant to be a long-term investment, then buying vacant land to develop it with a residential home is a good move. The initial investment might be bigger, but it is much easier to get back your investment with it. To get the same results with an existing house will require a lot of investment and may not even be possible.
Understanding the Risks
There are also the risks involved with each choice. Buying a house has fewer risks than building one from the ground up. House construction can face a lot of challenges, and some issues can delay it or stop it. There is also the problem of going over the budget. If you have limited funds, running out of good money is a big problem. However, there are also risks in buying a house that you didn’t build from the ground up. Surprise expenses like repairs or emergency upgrades can cause financial problems.
There is a difference in location when buying a vacant property and one with a house. A lot of the vacant properties available are not in optimal places. They usually don’t have convenient facilities like schools or hospitals nearby. Shopping trips might also require a longer trip. That is where buying established houses can be a good move. These houses are usually located in a good neighborhood with easy access to all the necessary things.
The biggest issue is always money. Beyond the price of buying properties or homes, there are also the additional financial issues that come with it. For example, it is much easier to get a loan for a built house, while empty land is always considered a bit of a risk for lenders. There are also the expenses that are involved in maintaining the property as well as the taxes. An existing house might have high maintenance bills and require upgrades to be more energy-efficient. With the home you build, you can have all the latest innovations in energy-efficient home design. There are even local governments that encourage people with tax credits for building a more eco-friendly home. These credits can also work for existing houses if they meet certain standards.
Getting It Right
The real advantage of building a house is making it perfect for yourself. With your input, you can have all the specific features you want in a house. However, this doesn’t mean that an existing home can’t get modifications and upgrades. For example, if you need handicapped access in a home, there are easy changes to make that will make it work. The only barrier is the increased price and the time needed to install these changes.
Your dream home might already exist, or you might have to build it. Asking the right questions can lead you to make the right decision when trying to decide on what you need to do. Whatever you come up with, the result will be up to you on whether you can stick with your plan on how to proceed. If you’re lucky and have the funds, you can even do both.