Buy or build?

For today’s house hunter, it’s a definite question with an indefinite answer. While each option has pros and cons, one may offer a clear advantage for your family based on your priorities. Read on to learn the advantages associated with both building and buying.

The Advantages of Building
When you build a new house, you don’t have to compromise on the wall color or the flooring choice—you get exactly what you want. Here are some of the additional benefits of building:

Tax benefits. By building yourself, you may be able to deduct the interest and points on the land and construction loans as well as any property taxes paid along the way.
Flexible financing. Some banks offer financing options that allow you to roll your construction loan into a traditional mortgage, potentially eliminating the need for a separate closing and its associated costs.
Energy efficiency. One of the biggest advantages of building a home is that you have control over the use of practices and products that can save you hundreds of dollars each year in utility bills.
Choosing your neighbors. A new neighborhood hasn’t had the time to become widely diverse. So, if you want a neighborhood with lots of kids, you can build in a child-centered neighborhood.
More living and closet space. Building gives you the option of purchasing a smaller lot and constructing a zero-lot-line home. This way, you maximize your living space.
Safety. New homes are generally safer, since they may have smoke alarms, residential fire sprinklers, carbon monoxide alarms, and fire escape windows.
Amenities. New neighborhoods often offer amenities an older neighborhood may not have, such as swimming pools, bike trails, clubhouses and picnic areas.

The Advantages of Buying
Purchasing a resale home means you’ll be able to check to see whether any defects in construction have shown up over the years. Here are a few other reasons an existing home may be for you:

Time to move-in. Since an existing home is already constructed, you generally won’t have to wait months or years before you can occupy it. This also means you won’t have to pay rent while waiting for your home to be built.
Location, location, location. Many existing homes are in neighborhoods that have been developed relatively near to the city center. This can save you time if your job is in or near downtown.
Personality. If you want a house where history happened, there’s no substitute for the real thing. Some older homes also have quirky details that add to its personality.
Price. When buying an existing home, you’ll often pay less per square foot than you would for a new house because homes just weren’t as expensive to build in times past.
Mature landscaping. Mature trees and shrubs can add a lot of value to a home and provide shelter from the heat and cold, thus increasing efficiency.
Homeowners associations. Buying an existing home in an older neighborhood may mean you don’t have to pay expensive homeowners association fees.

The deciding factor in whether to build new or buy existing is ultimately personal preference. Do your homework before making a decision, evaluate your family’s needs and wants—and then prepare to enjoy your new or existing home for many years to come.