Things to Consider when Building or Buying a Home

There are many factors to consider when buying or building a house to call it home. Everyone has their own opinions when making a home out of a structure. Despite this, there are some of the factors you should consider. They can affect you either positively or negatively.

Factors to consider before building a new house

Before starting construction it is critical to deliberate the following factors to be on the safer side.

1. Consider purchasing land or plot which is located at a strategic location
2. Before purchasing a plot ensure the seller is the legal owner of the property with enough documentation to support it to avoid being conned
3. Do due diligence of the prices  on the plots around the area to avoid exploitations
4. Be certain that the title deed is freehold to prove the ownership of the land and also to avoid land regulator in the future.
5. For easy accessibility to your home, ensure that it is accessible to roads and other infrastructures like electricity and water. This will ensure comfort in your home.

Advantages of building a home.

1. A newly built house be it for commercial or residential purpose, receive tax benefits for the first year of completion. Depreciation and renovation are also tax-deductible. This saves you some cash.
2. It allows you to build a house that suits your requirements and specifications, and most importantly, the flexibility for designing both interior and exterior of your home.
3. It would be more of a dream home
4. You can fit everything you want on your budget,
5. It gives you a sense of ownership.
6. In case of any modification in the future, it won’t be a problem
7. Low maintenance cost

Disadvantages of building a home.

• It is time-consuming. Properties often take seven to twelve months before it is complete. If the house is needed urgently it will force you to rent in the meantime before yours is ready making it more expensive.

According to Username Investment properties CEO, Reuben Kimani, majority of young people in Kenya prefer buying a piece of plot at an affordable price and they start building residential homes.

Another option if you don’t want to build a house is buying it, some of the factors to consider before doing this involve the following,

1. Ensure the cost meets your budget and understand the monthly costs that come with it.
2. Look for a house with smart features like an energy-efficient window, home security, and insurance cost
3. Consider the type of mortgage, keep in mind that floating-rate mortgage could fluctuate together with interest and fixed-rate mortgage the rate is locked
4. How is it accessible to the road and the time it can take you to commute to work
5. Make sure it is a noise-free area
6. Choose a friendly neighborhood.

Advantages of buying a house are,

1. Your equity is the amount of the value of the property that you own
2. The comfort of living security
3. You can create your dream home.
4. Mortgage payments can be a great way of saving money.

Depending on your interest, it is important to research before deciding building or buying a house and creating a home from it.

See Also:

Housing: Mortgage vs Renting