In Kenya, acquiring and developing real estate has become a common and trusted long-term investment. However, when people try to own homes, they are faced with the decision to either buy or build. Both choices have their pros and cons and a good investor must weigh them out carefully.
Building a House
There are many benefits attached to the construction of a new home. These are:
- Ability to personally monitor and control expenses: You can save money on building materials by negotiating with suppliers and taking advantage of bulk discounts.
- Customize the house to your specific needs: You have the opportunity to build the house according to your exact specifications. You have a certain degree of flexibility regarding landscaping, number of rooms and house exteriors.
- Quality and safety standards: You can inspect and ensure the construction materials are of high quality and the safety standards are up-to-date.
However they are some disadvantages to building a home. They can be minor setbacks such as unexpected delays to complex issues like permit clearances to delays from construction workers.
Buying a House
Buying a house can be less of a hassle compared to the process of building one. A good realtor can help you to identify the right home. Here are some advantages of using this option:
- Opportunity for resale: Once you buy the house you can renovate it and put it up for sale. The profits earned from the sale can be re-invested into new properties.
- Critical Shopping: You can compare various homes until you arrive at one that meets your desired criteria. To obtain the best rates in the market you can negotiate the prices with the home owners.
- Easy Budgeting: The decision to make upgrades to your home is at your discretion. Therefore the choice to spend, or not is under your control.
The disadvantages of buying a new home include:
- Home improvement costs: The costs of making additions to the original home layout are very high.
- Responsible for repairs: Once you buy a house you inherit any damages and quirks from the previous owners.
To better understand if it is suitable to buy or build a house, make a list of the features that are important to you. Compare the expenses and determine the trade-offs you are willing to make. Once complete, choose the option your budget can afford.
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