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When it comes to building vs buying a house in South Africa, everyone will have their own reasons for choosing one over the other. Ultimately, it’s about what’s right for you. However, those unsure whether it’s better to buy a home or build one should take into whether it’s cheaper to buy or build a house, as well as other factors that can play an important role. Cheaper to buy or build: A rundown of the costsOnce you add up all the costs, which approach is going to make a bigger dent in your financial resources? Data shows that building a home costs 20-30% more on average. (source, don’t include in final copy) It shouldn’t come as a surprise to anyone that building a new home is more expensive. However, in the long-term, it can save money by:
A new home will also be more valuable, thanks to a more modern design. Adding a garden can significantly increase the expense of building a home, but will provide a dramatic boost to its value, especially in an age where people are spending more time at home. Other factors to take into accountAside from the costs involved, there are additional pros and cons to each approach. We provide an overview to help you make an informed decision: The advantages of buying an existing home
The complications of buying an existing home
The advantages of building a new home
The complications of building a new home
Getting a loan for building a homeIf you decide to build a new home from scratch and need finance to do it, you need to apply for a building loan. The process is similar to applying for a home loan, requiring a thorough evaluation from the bank that includes checking your credit record. However, in this case, the funds are paid to the building contractor, and the bank retains the final payment until construction is complete. Of course, if you choose to buy an established home instead, you’ll have to apply for a home loan. In the case of a building loan or a home loan, you can employ a home loan comparison service such as ooba Home Loans. We can apply to multiple banks on your behalf and compare interest rates to secure you the best deal. We also offer a range of tools that can make the home buying process easier. Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan. |