Should I Build, Buy, or Rent?

When trying to find a new place to live, you may look into the potential of buying a home, renting, or having a completely new home built for you. Because this is such a massive decision, it's important to consider the pros and cons of each carefully. This breakdown of the advantages and downfalls of each will help set you up with the basics to continue doing your research to make as informed of a decision as possible.

Build

There are a number of pros when it comes to building your own home. One of the biggest is that you get to make your house exactly the way that you want it down to the finer details. You can choose everything from the blueprints to the interior finishes (carpet, cabinets, doors, etc.). You also get the peace of mind that all of the big cost items in the house are new, and you will not have to worry about them breaking as long as they're installed professionally. You get to choose the location of your home, and make sure it suits your needs. 

On the other hand, there are a number of cons to building as well. Building takes time, usually from 5 to 9 months. Plus, you will need to do research and find a contractor that is reputable and willing to work in your area. Also, it can get expensive. Before you can build, you have to obtain property, which is another expense. There are also items like tap in fees to get public water and sewage on your property, and those can be over $1,000 a piece. You also have to obtain a number of permits, and have your property deeded to you before construction can begin, which can cause costs to rack up quicker than expected. 

Buy

Buying can be a great option. You can view a number of homes in your area, usually through a realty company, and make comparisons. When buying, you also have the option to make an offer. This means that you can offer the seller less than what the listed the home for. If things work in your favor, you could end up with your dream home, and at a dream price. With buying, the process can be much quicker than building, and a realtor often handles the majority of the paperwork. 

Just like building, there are a number of cons to buying. One is that you will probably need to work with a realtor. This is a con because upon the purchase of your home, you will have to pay a large fee to the realtor, on top of the purchase price. Also, if you are buying an older home, you don't know how long things like the furnace or roof are going to last. You can opt to have a home inspection to have everything checked, but that cost comes out of the buyer's pocket. Lastly, the housing market fluctuates. You may purchase a home and two months later, the market crashes and you could have purchased your home for a cheaper price.

Rent

One of the pros to renting is that it can be used for short-term or long-term living. It all depends on you and your lifestyle. Another bonus is that you do not have to pay yearly property taxes. Renting can be cheaper compared to owning your own home, in some cases. Plus, renting gives you more freedom and less responsibility compared to being a home owner. 

A huge con to renting is that there is no revenue to be had when you leave the apartment. If you own your home, you can sell it and have money in your pocket. When you rent, you make the monthly payment to the landlord, but see no return in the end. Also, you have no control over your neighbors, especially in you live in a building with multiple units in it. You may have neighbors that make a lot of noise. When you rent, you really have no idea who will you end up next to, or who will come in.

These options each have positive and negative aspects. When trying to decide on a new place to live, do your research and ultimately decide based o what is best for you and your lifestyle. Remember to enjoy the experience, there's not many better feelings than finding the ideal home the works for your budget. Enjoy!

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