Buying vs. Building a House in London: Which is a Better Deal?
Should I build or buy a house in London? Talk to a London Realtor First!
Making a decision between buying and building a home in London Ontario is not as easy as picking out the perfect carpet/tile combination. For individuals on a tight budget, the choice does not have to be daunting since 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 associated with the new construction process that could make it the right decision for you.
Are There Benefits to Buying a Pre-Existing House vs. Building a New 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.
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 the abundance of time required to make the decorating decisions for new construction homes.
You Get to Live in an Established Neighbourhood
Another benefit associated with buying a pre-existing house in favour of building one is that you, as the new homeowner, get to live in an established neighbourhood. What this means is that the area is bound to have schools, parks, recreation centers and convenient proximity to some favoured 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 direct you to the perfect neighbourhoods to find that perfect real estate.
Finally, the question "Should I Buy or Build a house?" is typically discussed among close friends and family members. As such, the decision to buy a pre-existing house in a particular neighbourhood is influenced by them. This means that odds are that when you buy a pre-existing house in a specific neighbourhood, you will be surrounded by familiar faces as most purchase recommendations will revolve around their neighbourhoods.
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 want longer daily commutes is to buy pre-existing homes that are already constructed in London or surrounding communities.