It is normally way cheaper to build than to buy a house. When we buy a house today there have been numerous mark ups on it by the people that built it.
Normally when a new house is built the builder is looking for a minimum of 30-40 percent profits. he may end up with 25% percent after negotiations. Where I live I can buy a plot of land and build a house and it will still work out way cheaper.
The benefit is that you are getting a house that you want. You can choose the design and what specifications you want. By doing this you are not cutting corners and are getting ahead of the housing market by having instant profit on the build.
This way others who purchase a house normally have to hold onto a property for 5 or 10 tears to make a decent return and you will have it from day one. The more you do yourself the more you will make. Contractors are not cheap but if you get decent ones and work with them you can save a fortune.
If I had a choice I would definitely build my own home.
Anywhere else in the world, the answer may be, it depends on how big, of what materials, or in what neighborhood.
In Venezuela the answer is: building a house is going to be way more expensive.
First of all, with all the immigration fever (actually, I have called it elsewhere an exodus) the housing market is at an all-time low. There are no buyers (who in their right mind would want to live in any city of Venezuela?), so people are settling for whatever pittance they can get for their houses or apartments. Of course, for investors and those who have money to spare, this is great business. Buy cheap today, sell high tomorrow (not that easy here, anyways).
Then, we have the issue of market prices. Once a good house is sold cheap, all other houses will have to sell accordingly.
Building, on the other hand, is nearly impossible here. Building materials are hard to find, that makes them super expensive. Labor is also hard to find (most good workers have left) and with the super mega inflation rates we have, people can charge one price today and 300% more tomorrow. Thus, unless you make sure you find every single item you’ll need to build that house, make sure you get all the experts, and have them promise you that they’ll build it in a day, there is no budget that could cover building a house in Venezuela.
Well, for me, I'd say it really depends. Building a house is cheaper sometimes and buying a house is also cheaper sometimes. In my opinion, the right question should be, Which is more beneficial, building a house or buying one?
When you build your own house,
Whereas, when you buy a house, you do not know if it can withstand any conditions. Yes, it may be is cheap but what if the materials used are sub-standard? It can be hazardous to you. Yes, it may be is expensive but are you sure the materials used are of good quality? Are the workers skilled enough for the job?
Therefore, if I were to decide, I'd rather spend big sum of money building a house because I am the one supervising the construction. I can sleep peacefully because I've seen first hand the construction so I'm confident it would keep me safe.
If you've got land that is inherited from your grandparents or parents and it's empty is definitely cheaper. Usually if you contract the work to the local builders who can built for you cheaply instead of buying a home pre built. The contractors who built pre built houses usually add in a high margin because they have to bear the risk of building lots of houses on land they have acquired from the government.
However, if your background has nothing to do with building a house or contract work. It is better and easier just to buy one off the market. Just go hunting around, I am sure there are lots of bargains out there. If you found a house on a land your interested in, grab it and renovate it later.
In conclusion, I think it really depends on your interest. Building a house is a joy in a way as you can see your own house being built is a joy when you see it being built up from an idea of your mind.
It depends on the type of house, the location and the price of the house. Building sometimes is cheaper and buying sometimes is cheaper. But the advantage of building your own house is that you will build it to your taste.
You know how you want your dream house to look like. So when you build your house, you're very likely going to ensure that you build it be based on what you want. Though you can buy a house and renovate it to your taste but that would mean that you would be spending more on such a house
So whether you're building or buying, both of them have their own advantages and disadvantages
It's most likely is lot cheaper, of course, for two reasons:
1) To the extent you do it yourself, you don't have to pay anyone else for the labour. On the other hand, if you're not good at it, you might be better off leaving the building to professionals and work overtime in your own profession instead - in spite of the taxes (see the point below).
2) The cost of labour has a lot of taxes embedded in it. You should absolutely build your house if you're builder by profession even if you had to cut down paid work in order to build your own house. When building your own house, the house is your pay and you pay zero taxes on your labour.
For me, Building are house is more expensive than buying a house especially in this era.
Building a house would have been cheaper in the early 2000's but at this point every building material is expensive.
New patterns of design and new building materials have emerged and they are all accompanied with high prices.
Poeple who sell thier house mostly do so to get the money so as to solve a particular problem. And when doing this they might undersell the house making the house cheaper than it was built.
I was fortunate to be with a real estate agent who told me that right now people are into buying houses rather than building it due to the cost.
Yes, if you are a contractor or a builder yourself.
* Contractors work with same people. They built trust over each other . That way contractor's sunconstructors give good price to the contractor who they always work for.
* Contractors know who does the best job, that way they don't work with people who mess up.
* Contractors also have experince and make good design choices.
* Contractors buy construction material cheap
* Contractors have -either doggy or not doggy- personal relations with the municipality and authorities, they can get what they want faster and easier
- So you should buy a house built by a professional contactor ( This is what I think )
Pro building ( Assuming you act as a contractor yourself without experince ) :
* Some contractors charge way too much for their work, even if you are inexperinced and make a lot of mistakes you might break even
* Contractors put their interests in front of everything try to lure you the way they want, if you are the contractor you can be free with your design choices.
- So you should hire specialists and be a contractor and built your own house ( this is another argument )
With the right skill & knowledge on building a house, it's definitely way cheaper than buying a built one.
A person who intends to sell a house will actually factor in a profit for him selling the property, to consider all administrative fees to it.
But considering the fact that building a house is really consuming a lot of time & energy, in other words it's stressful. The additional charges in buying a property might actually save you money especially if you don't really how to execute a building a house. For as long the price is within your budget then I would suggest for you to go for it and buy a house instead.