Property: Myths around building your own house

Early Breakfast with Africa Melane

Chris van Zyl | Property Developer specializing in residential at Kreate Homes

When it comes to building vs buying a house in South Africa, everyone will have their own reasons for choosing one over the other. Ultimately, it’s about what’s right for you.

However, those unsure whether it’s better to buy a home or build one should take into whether it’s cheaper to buy or build a house, as well as other factors that can play an important role.

Cheaper to buy or build: A rundown of the costs

Once you add up all the costs, which approach is going to make a bigger dent in your financial resources? Data shows that building a home costs 20-30% more on average.

It shouldn’t come as a surprise to anyone that building a new home is more expensive.

However, in the long-term, it can save money by:

Eliminating the need for costly renovation..

Saving on maintenance costs.

There’s no need to pay transfer duty.

Tax benefits, such as the ability to claim depreciation over the next few years.

A newly constructed home will be more energy-efficient.

A new home will also be more valuable, thanks to a more modern design.

Adding a garden can significantly increase the expense of building a home, but will provide a dramatic boost to its value, especially in an age where people are spending more time at home.

Other factors to take into account:

Aside from the costs involved, there are additional pros and cons to each approach.

The advantages of buying an existing home

An established property will usually be located closer to a city center than a new home (vacant stands are rare in inner-city areas). This means it will be close to schools, public transport, work opportunities, and restaurants.

An established home may already have a garden, and even a swimming pool; things you’d have to pay through the nose for in a new build.

Buying an established home is a quicker process, usually taking around three months to secure the home loan, pay the deposit and present attorneys with necessary documents.

You can employ the services of a home loan comparison service to help you secure the best deal on your home loan.

There can be profit in flipping houses, meaning you buy an existing property and fix it up before selling it at a higher price.

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