Thursday, February 17, 2011

Should You Buy A Home Or Build One?

By Maria Valenzuela

"Okay, I will buy a home."

You don't always hear these words from people having cold feet for they know that buying a home is not something that they can do on a whim. Buying a home is like laying down all your cards on the table and it takes courage to do even if you have the money or have been approved in a home loan.

Aside from the risk involved, your time, money, and energy are all invested in home buying. But before you take a leap, you need to know that there is another choice - build your own home. It might sound that it is more expensive and time consuming but here are some reasons why building a home is worth the choice:

1. The value of new homes appreciates. So when time comes that you have to sell it, you will surely get more money than when you built it. Just all you need to do is maintain your home and the value of your home will definitely not depreciate.

2. You can save money. This is a fact. Building a home will require you to show a lot of money and perhaps you will apply for a construction loan but this is not much compared to applying for a loan to buy a house and pay it for 15-30 years and where you are at risk of foreclosure. In building homes, you must have saved up for it and once the house was built, you don't have to pay for monthly mortgage payment, or lease.

3. Owning a new home brings a sense of pride and self fulfillment. From a mere house plan to a real home, this can bring a sense of achievement to the owner. It's like looking at the fruit of your hard years of working.

Owning a home is an investment. Your house is not only a place to rest but as an investment, there are so many ways on how you can use it. If you are having financial problem, you can use your home as collateral and buy it back. When you get older, you can sell it and use the money on your retirement.

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