Buy or Build??



From: Rasputin .

Again another topic probably done to death elsewhere, but what are the pros and conss of buying established home versus building one.
One obvious problem is that with a buy you can get rental return quickly on your outlay, but with build you have installment costs as property is built and no income till complete...

Others please.!!!!
Last edited by a moderator:
Reply: 1
From: Gee Cee Cee

Just basically. If you can obtain the land in a growth area at the right price and then build something to suit the market you may have a instant capital gain on completion.

Problems being progress payments and the holding costs whilst all this takes place. Eg interest, rates, insurance, delays.
Finding reliable builders can help and the hope that they don't go bankrupt half way through the job.

Any downturns or interest rate hikes that may take place over the time from planning to final completion and handover can also really muck up you hopes and predictions.

As well supply may suddenly be oversupplied and demand almost no existant when you finally get the project completed.

Just my thoughts

Gee Cee

(The conservative unemployed bum)
Last edited by a moderator:
Reply: 1.1
From: Rasputin .

Thanks Gee.. Just got me thinking the other day, I could see some pros and cons with both
Last edited by a moderator:
Reply: 2
From: Jeanette .

I've just built a house. To buy into the area would cost $300,000 plus. To build, it cost me $250,000 (including interest payments during construction). I've had the house valued on completion and the valuer valued it at $310,000. So there was an instant capital gain. Downside - builder was horrendously slow with the result that I suffered stress for 12 months and probably lost weight. But now that it's finished, I am glad I did it and think that you can't expect to get a capital gain at the end of the project if you haven't put any effort into it, otherwise everyone would do it. I think some people pay the higher completed values of houses just to avoid the hassle of going through the building process, so I look at it as if they are paying me to go through the headaches for them.
Last edited by a moderator:
Reply: 2.1
From: GoAnna !

I think there is a book in that! The path to wealth and weight loss. Send me a copy : )

GoAnna !
(aka Anna before she got real)
Last edited by a moderator: