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05-02-2009, 06:37 AM #1
Fixer Upper
- Join Date
- Feb 2009
- Location
- Ohio
- Posts
- 42
Build or Buy...That is the Question
My wife & I are torn. We currently rent a house month-to-month and want to move on to a purchase. We started out wanting to build a home, but we just found a home for sale that's about 85-90% identical in size and features to the one we want to build.
My question is, is the home loan structure for both building and buying basically the same? We're talking to our preferred builder and from what they tell us, everything would be rolled into one loan (land and house), then we have other folks telling us it's better to get the land first and then get a loan, etc.
On the other hand, the existing home purchase appears simpler, since everything's already in one package. But the home has a few things we don't like that were taken care of in our new home build.
Is it really that much more of a hassle to build, loan-wise? The price of the existing home we like and the home we want to build are very close in price.
Also, my wife and I have very good credit and good jobs. I'm in the 800s and she's above 750. I realize this forum might be biased towards buying an existing home, but give me your honest opinions."Recent medical studies suggest that drinking a fifth of Jack Daniels every day reduces the awareness of a heart attack."
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05-02-2009, 10:16 AM #2
Condominium
- Join Date
- Aug 2007
- Location
- Kentucky - in a barn!
- Posts
- 279
I don't think most real estate agents are going to be biased on the choice. They get paid either way, so I don't think it really matters from a bias standpoint.
If you are looking for happiness, and are a perfectionist - best bet is to buy land and build it so you can make everything exactly the way you want.
However, keep in mind that builders are going to try to ensure that they get a profit out of the house.
If you are wanting appreciation/equity, many markets have excess inventory of homes with sellers that MUST sell (relocations, foreclosures, etc) - and they are willing to get rid of the home at a loss - creating a better financial opportunity in many cases.
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