Why building a new house is better than buying an existing one?
Owning a property is one of the best gift to ourselves and to our loved ones. We all have that dream design in our heads but we have no clear ideas how to start having it.
Sometimes we gave up that dream and just jump into buying an existing property. We've been there before and we know that feeling of seeing no other options.
Learn how to get that dream home or dream establishment of yours in the best and easy way. So before you give up on your dreams, read carefully this very useful article.
The advantages of building a new one:
1. Own Architectural Design
If you care about having creative control over many of the exterior and interior features of your home/project, including the floor plan, countertops, cabinets, backsplash, flooring, etc., it might make more sense for you to build a brand-new home/project.
Building a brand-new home/project to your exact specifications may sound like a dream come true. Well, it is!
2. Cheaper but higher quality
Let's take a look how does a Php2.9 Million brand-new property of a legit contractor looks like compared to a Php5.8 Million brand-new real estate property.
It's possible to modify an existing property, but that can often translate into an involved property improvement project, which might prolong your move-in timeline. It also means more money. HomeAdvisor says the average cost to remodel multiple rooms is Php1,800,000.
Keep in mind you'll likely have older materials in an existing property to contend with, versus a brand-new set in a project. Overall, you should expect that your maintenance costs in an existing property could add up much more quickly.
In other aspect you can also buy a brand-new property from a real estate company but will surely cost you double.
Here's why;
Aside from having similar designs with other buyers, you will likely get low building quality since you don't know what kind of materials they'd use in it. You also don't have any ideas how cheap these materials are.
3. Best quality & updated building standards
Ofcourse you still think of your safety during unexpected calamities like earthquake, that's why you need a 15 years structural warranty. To ensure the best building quality of your home/project, a contractor you need is the ones who uses the updated construction building codes & standards
4. Better efficiency saves money
The big advantage is you are much more likely to get exactly what you want. For many, this factor alone is enough to choose to build over buying, but there are other advantages too. A new home/project is more efficient, especially with the new energy codes including better HVAC [heating, ventilation, and cooling], insulation and air filtration standards. Better efficiency is good for the environment and can save you money on your utility bills each month.
5. You can ensure that your new home/project has not used toxic materials
A new home/project may literally be better for you. A new home/project is less likely to have the health concerns or toxic materials of an older home – things such as asbestos, lead paint, mold, etc., and it can be built with certain materials making it better for the environment. Green appliances/Energy Star rated appliances, and more efficient toilets, plumbing fixtures, and electrical fixtures allow you to build "green" for a more sustainable home/project in the long run. And you have the option to install, sleeve and/or wire for future technology upgrades, such as home/project automation.
6. Satisfaction of your needs
Building a new home/project can lead to a level of satisfaction that you can't achieve through buying an existing property. There is a definite feeling of an emotional connection to living in a new home/project that you have created. The new-home smell, no one else has stepped foot (or pets) on your carpet. This is your creation that matches your style and personality, that you created from scratch.
7. You choose the best location
The choice is always yours! Not only the comfort of your own style but you can also choose the comfort of your location.
Finding the best location for your home/project is now very easy thru social media connections and other platforms.
8. Home and business construction loan
One of the main reasons why most of you are jumping into buying a real estate property is financial issue. As an average employee or business owner it's quiet hard for you to get big cash to finance your dream home or business establishment to be build. Sorry to burst your bubble but the truth is; It's not impossible to finance your dream project. The secret that most of you don't know is you can loan a cash from your banks. It's commonly called "Home Construction Loan" or "Business Construction Loan". The advantage of this is, you don't need any cash to start financing your dream project because, once the bank approved your loan application you now have the cash you need to start building your project. This best part is you don't need to break your piggy banks to pay the down payment needed for a real estate property. You don't need to do that since you can now use the money loaned from your bank to start immediately constructing your dream home or commercial project. Most banks offers 25 years of payment terms with 6-8% interest rate.
Sample computation:
Loan amount = Php3,000,000
Monthly amortization estimate = Php20,100
Years to pay = 25 years
You see it right and yes it is much cheaper with more advantages than paying a real estate property.