Buy or build

Buy or build ? The advantages and disadvantages

In the context of a real estate project, the choice between buying a house and having the property built can be difficult. Each option has advantages and disadvantages which deserve to be analyzed and compared to the needs and requirements of the future owner. This is why, in this article, we focus on the subject to give you as much food for thought as possible between buying or building your property.

The advantages and disadvantages of buying a house

Advantages

By purchasing a house, you benefit from the unique charm of an old property steeped in history. Beyond this aesthetic and sentimental aspect, buying an existing house also has other advantages.

Quick move-in: the house is ready to be inhabited, all that remains is to sign the sales contract and record the transfer of ownership with the notary. This gives future owners the possibility of living in or renting out the acquired accommodation.

Fewer administrative procedures: buying a new house saves you from procedures related to the purchase of land, the building permit and the contract with the builder.

Renovation potential: you can renovate and personalize the old property in order to create a home in your image, to make it compliant with energy standards or simply to give it a distinctive character. By including the costs of renovation work in the purchase price of the property, the expenses may be lower than the total cost of new construction.

The inconvenients

Older properties are often subject to poor energy efficiency. But we do not find this problem in houses built or renovated according to thermal and energy regulations, such as RT 2012 or RE 2020.

Customization Limitations: All modification work must respect the architecture of the existing construction. In other words, the exterior customization of the building is limited to the renovation of the facade, the change of colors and the change of materials of elements such as the roof, doors and windows.

Hidden risks: the old age of the building or the obsolescence of the equipment constitute potential losses for the buyer, particularly in terms of rehabilitation expenses. However, the buyer remains protected by the mandatory real estate diagnostics for the sale. The technical diagnostic file (DDT) and the housing information book (CIL) informing you of the current state of the building.

Compromise on location or layout: you cannot change the location or layout of a house that has already been built.

The advantages and disadvantages of building

Advantages

Building your house means slowly, but surely, seeing your real estate project come to fruition. From the laying of the first stone to the handing over of the keys, you can see the progress of the site. In addition, other privileges are available to you.

Complete customization: you are the owner of the house you want to build. You have the cards in hand to choose the plan, architecture, orientation, size, materials to use, etc.
Recent construction standards: all new construction is subject to compliance with current regulations (energy, thermal, sound, seismic, electrical installations, etc.). By choosing to have your house built, you guarantee its conformity and the comfort of future occupants.
Choice of location: when you choose to build a house, you can choose its location (countryside, outskirts, city center). You can also arrange the accommodation on your land as you wish.

The inconvenients

Building your house involves managing various restrictive aspects of the project.

Construction time: moving into the new house requires a longer wait, with construction generally lasting from 6 to 20 months. The construction duration depends on various parameters such as the size of the building, the expertise and resources of the builder, among others.

Project management: you must take care of sometimes complex and laborious tasks ranging from purchasing the land to managing the progress of the work, including applying for building permits, finding construction professionals and managing from the budget.

Potentially high and unforeseen costs: Due to many operations to be done, costs may exceed initial forecasts. In addition, unforeseen events such as increases in the price of materials may require you to revise your plans.

Buy or build? The advantages and disadvantages

Factors to consider

In order to guide your decision between buying or building a house, it is crucial to take into account the following points.

Budget and financing

Choosing between buying and building a home can impact the financing of your real estate acquisition. In fact, it is easier to obtain a bank loan when it is a purchase. For credit institutions, existing houses constitute a tangible guarantee with which they can be paid when the borrower is no longer able to repay their loan. Purchasing real estate also makes more sense if you want to control your budget.

Location and terrain

The location of the property is very important in a real estate project. The attractiveness of the location can be assessed based on the proximity of the property to services (commerce, transport, school, health establishment, etc.), level of security in the neighborhood, cost of living in the city where it is located, etc. .

Personal needs and preferences

How many bedrooms do you need? Do you prefer an apartment with a vue over Bordeaux or a beautiful contemporary house? Do you want to live in your property or do you want to rent it out? Do you want housing that reflects your image or simply a property that allows you to obtain added value? The answers to these questions should guide your decision between buying and building.

Duration of investment

The type of investment also matters. A purchase/resale rather requires a property ready to be inhabited or which requires little renovation. On the other hand, if you plan to benefit from tax exemption schemes, it is better to opt for a new property (Denormandie scheme) or in an old restored property in a run-down area (Malraux scheme).

Some tips for making the right decision

Here are some tips to help you choose between a property already built and a property to be built.

Assessment of personal and family needs

Defining your needs allows you to establish relevant criteria to guide your decision. You also need to plan for the future, because if, for example, you want to start a family with children, buying a T3 is wiser than buying a T1.

Professional consultation

Real estate professionals such as builders and real estate agents, such as our real estate specialists at BARNES Bordeaux, can offer you sound and objective advice. Thanks to their in-depth knowledge of the market, they can help you find the most advantageous solution that best suits your needs.

Comparison of total costs

If you want to know which of the two solutions is more financially advantageous, you must compare the total costs of the investment. To do this, you must take into account the price of the property as well as all costs relating to the acquisition (notary fees, transfer tax, expenses to renovate the property, etc.).

Analysis of real estate market trends

To make the right choice, you must stay informed of trends in the real estate market, price trends, state of supply and demand, etc.

In short, you can buy a house in an existing park or build one on land that you must first acquire. Before choosing between the two, you must take into account your needs, your preferences and your situations (financial, family, etc.). And from the moment you plan to buy or build, the support of a real estate professional will always be of great help to you. Would you like more information on this subject and invest in properties in Bordeaux ? Do not hesitate to contact a specialized consultant from our real estate agency in Bordeaux.