Buying vs. Building a House in London: Which is a Better Deal?
Making a decision between buying and building a home in London, Ontario is not as easy as picking out the perfect carpet/tile combination. However, for individuals on a tight budget, the choice does not have to be as daunting as mortgage rates remain low while the price of building a new home continues to increase. There are many pros and cons but talking to a London Ontario Realtor can really help you sort out what is best for you and your family
Apart from possible cost saving benefits offered by buying a pre-existing home, there are numerous benefits that are associated with the process that makes the decision personal, rather than solely financial.
Should I build or buy a house in London? Talk to a London Realtor First!
Are There Still Benefits of Buying a Pre-Existing House vs. Building a House?
According to RIJUS Home Design, the average price of building a new house was $170 - $200 per square foot to hire a custom home builder, while that of purchasing an existing home was around $300,000. Considering the rising prices of existing homes, it is no longer obvious that buying a pre-existing home makes financial sense; the decision is much harder now.
Easy to Resell for a Profit
Buying a pre-existing home provides individuals with an opportunity to resell it for a higher price than it cost them. According to a 2016 RealtyTrac report, once a new homeowner makes some necessary upgrades to their new purchase, they can make an average gross profit of approximately 47 percent of the house’s original purchase price. Of course in today’s real estate market in London, if you talk to any real estate agent, this number can vary widely. An additional benefit to making a lump sum of money once the house is flipped is the fact that most times, the costs associated with the process of upgrading a home for resale purposes can be delayed. This means that a new homeowner can take their time when making upgrades. This also gives one time to make serious budgeting decisions that will lessen the costs of the upgrades.
No need to Delay your Move
Unlike building a home which requires that you exercise every ounce of patience you possess, buying a pre-existing house allows one to quickly move in and occupy the property once the deal is closed. This is particularly advantageous for individuals who live on tight schedules and cannot afford to spare the time to move into temporary housing as they wait to move into their newly built homes.
You get to Live in an Established Neighbourhood
Another advantageous reason associated with buying an existing house in favor of building one is that you, as the new homeowner, get to live in an established neighborhood. What this means is that the area is bound to have schools, parks, recreation centers, and convenient proximity to some favored means of public transportation. This also means that you will not need to worry about contracting a landscape designer to spruce up your lawn as the land will already have a mature landscape. An experienced London, On, Realtor, can point you to the right neighborhoods to find that perfect real estate.
Lastly, the question "Should I build or buy a house?" is typically discussed among close friends and family members. As such, the decision to buy a pre-existing house in a particular neighborhood is influenced by them. This means that odds are that when you buy a pre-existing house in a specific neighborhood, you will be surrounded by familiar faces as most purchase recommendations will revolve around their neighborhoods.
Proximity to Town/City
The obvious fact linked to building your own home is that most of the land available for home construction typically is not near the epicenter of towns and cities. This means that the best bet for individuals who regularly conduct their business in the city and do not need long daily commutes is to buy pre-existing homes that are already constructed in London or in a surrounding town.