"Buying or building" is an interesting topic among Nigerians. While some people think it's best to build your home, others believe the best option is buying. There is no right or wrong answer to this debate. Both options are credible.
If you have been following Land Republic for a while, you will be aware that in situations like this, we give the facts. After presenting the facts, we leave it to you to choose. Without much ado, let's get started with this interesting topic.
Factors to Consider before Buying or Building
When considering property ownership in Nigeria, you must choose between buying and building. As stated in the previous paragraph, there is no wrong or right option. However, there are several factors you need to consider before making a choice.
1. Your Budget
Buying a new home is sometimes more cost-effective than building one, especially if you want to customize the home and use exotic materials. Furthermore, the cost of building materials is not static. Most times, they get more expensive as time passes. Before buying or building, you need to examine your pocket to know how far you can go.
2. Location
Where are you proposing for your building? Buying a house might take a lot of work if your desired location has few houses and more undeveloped land. Most houses in such locations will be built by people currently occupying or using them for commercial purposes. Hence, your only alternative will be to build.
3. Timing
How soon do you need the house? If you need a house to move into, buying may be better than building. Building takes considerably longer time than buying. Buying might be your best bet if you need to acquire a house in the shortest possible time frame.
4. Customization
Building your own house is the best option if you are big on customizing and personalizing your properties. An already-built house will be structured according to the contractor's perspective, and it will cost more to include personalizations.
5. Maintenance
Sometimes, buying a house might mean signing up for maintenance work. Most times, homes put up for sale in Nigeria have been previously occupied by someone. To totally eliminate maintenance costs, it might be best to build your own house.
Pros of Buying a House
1. Immediate Ownership and Occupancy
Buying a house in Nigeria saves you a lot of time. When the acquisition process is completed, you can move in and occupy the building immediately. This can be a major advantage if you need more time. Additionally, acquiring the property for commercial purposes means you can start making your income and raising the purchase cost immediately.
2. Reduced Stress
Building a house has several steps and procedures that property owners must follow. This could make the process of building a very stressful one. Buying a house helps you bypass the stress homebuilders go through. All you need to do is find a property that’s up for sale and confirm the ownership and validity of ownership claims. Afterwards, begin the ownership transfer process, and the house becomes yours.
3. Established Infrastructure
Buying a built house saves you the stress of constructing infrastructure. Most already-built houses in Nigeria have the infrastructure constructed before they are put up for sale. This means you don’t have to worry about water, electricity, or sewage systems. This would save you a lot of time and money.
4. Proven Resale Value
Most established houses in desired neighbourhoods have a track record of appreciation. By implication, you can sell the house at a good price if you desire to sell it later.
5. Gives Allowance for Negotiation
Negotiation is a deeply rooted art in real estate. When a seller gives you the price of a property, there is an allowance for negotiation. When building a house, it might be difficult to negotiate in certain phases of the construction process.
Cons of Buying a House
1. It may Not be your Exact Specification
Despite the ease of acquisition, getting the building you desire might take a lot of work. Sometimes, even if the building fits your wish list, the structure layout may not. Before proceeding with the building purchase process, it is best to determine the negotiables and non-negotiables.
2. You may Need to Pay Additional Upgrade Costs
Everyone desires to live in a house that has their trademark. If the house is not what you want, you might need additional costs to upgrade and remodel the house. The house might also need additional decorations and interior furnishing.
3. Hidden Repair Costs
If you are buying a house that has been built for a while, prepare for repairs. Some of these repairs might only come up once the purchase deal is signed and sealed.
Pros of Building a House
1. The House is New
Building a house implies setting it up from scratch. This means everything about the house is new, and you will not need to worry about repairs, remodeling or renovation. Additionally, you will be the house's first owner, so you won't need to deal with repercussions from the mistakes of previous users of the house.
2. You Call the Shots
When building a house from scratch, you call the shots on what to do and what should be done. You decide the area yourself, the building you want and all the dynamics you want to put in place. You don't get to enjoy this luxury when buying a house.
3. You don’t have to Worry about Repairs
When you build a house from scratch, all the materials are in their best shape. This means you have no business with major repairs in the long run. You might only need repairs if your contractors mistakenly bought inferior materials. Hence, it is advisable only to use contractors who are good at the job.
4. It might be Cheaper in the Long Run
Most times, people parade buying a house as cheaper than building. While this might be true based on the apparent price tag, it's not always true. Most ready-made houses require repairs, customization, upgrades and other fixes. When you compare these costs to the building price, it is usually cheaper to build.
Cons of Building a House
1. Building Takes Time
Building might not be a good option if you need a new house to move into within a short time. Building takes time to get started. Before you get to the point of the building, you need to conduct research, get a proposed property and confirm the authenticity of ownership. Additionally, you will need to develop a survey, architectural designs and mockups. By the time you go through all these processes, you will spend considerable time.
2. There are Several Risks Involved with Building a House
Building a house has several risks involved. There are risks of site accidents, poor workmanship and unfaithful contractors. One of the ways you can keep this in check is by constantly monitoring what is being done on-site. When you can't oversee it, get professionals to monitor the site.
It is important to state that one of the ways you can save money is by hiring professionals to oversee the construction of your building. Contractors exhibit dubious practices that can only be checked by a professional. You want to make sure contractors save your time and building materials.
3. The Cost is Not Fixed
The cost of building materials in Nigeria is not fixed. Most times, the cost during the budgeting phase might have changed significantly by the time you are ready to build. Unfortunately, you may not get the chance to negotiate these materials' costs significantly. Paying a deposit for the materials and having a deal with sellers ahead of when you need the materials might help you manage costs effectively.
4. Stress
Buying a house in Nigeria often comes with stress and some rigours. You will need to relate to different kinds of people and different situations. No matter how much preparation you make before you start building, there will always be situations to unsettle you when building starts.
Conclusion
The argument about buying or building a house could be very interesting. However, weighing the pros and cons before you start is best. This blog presents you with the advantages and disadvantages of both home ownership procedures. We have other blogs that are similar to this.
Our real estate vs Stocks blog weighs the two investment plans and presents advantages and disadvantages. We also have the Rent Vs Buy blog that explains the differences between renting and buying a house.
Land Republic desires to see you make remarkable progress in your real estate journey. Contact us today via +2348122222283 and support@landrepublic.co. We can answer your questions and give you the clarity you need.
