Build a New Home - Or Buy a Fixer-Upper?

">- Unless you get good deals on materials and do a
There are pros and cons with every approach.decent amount of work on the house yourself,
Each case should be measured and judged on itsthe profit on your project may be rather minimal
own merits. My clients and I have done our shareWhy Buying a Fixer-Upper Could be a Good Idea
of both. It's a question that bears close scrutiny.There's no question that buying a fixer upper can
In this discussion, we'll analyze the pros of buyingbe complicated but, they don't have to be.
and upgradin a fixer-upper, and the cons ofChoosing wisely can make your fixer upper fairly
building a new home.straightforward and can turn out to be a good
The Case Against Building a New Homedeal for you.
Building a new home from scratch is a majorHere are some reasons why buying and
project. It really takes dedication and time toremodeling a fixer-upper could be your best bet:
successfully complete your home. Your- There are some good deals in home purchases
commitment better be complete and you'll haveand if the renovation project isn't too complicated
to set aside months and months - evenor costly, it can pay dividends
sometimes years to finish.- You can complete many remodeling projects
Here are some of the reasons why building a newwith very little need for home building materials
home may not be your best idea:- You may not need the services of an architect
- You'll have to either buy house plans andor designer
blueprints or have an architect design them- You can often get away with minimal home
- A complete package of building materials is goingbuilding/remodeling permits
to be costly and difficult to put together- It's often possible to complete a lot of the work
- Getting your house plans approved by theas a do-it-yourselfer to keep the cost of hiring
building authorities is going to likely be difficult andcontractors to a minimum
time consuming- Building time is vastly less with a minimal
- If you don't own land to build on, buying it isremodel ... the savings in the cost of money over
going to add significantly to the over all cost toa two month period vs. 12 to 24 months is
buildsubstantial
- You may have to bring utilities to your building- If you're also looking for a place to live, buying a
lotfixer-upper is an immediate solution
- Many parcels of land have Covenants,Getting Professional Help
Conditions, and Restrictions to deal with and theyThis article is meant to give you things to think
can be very restrictingabout. Before you decide what approach is the
- Construction loans can be difficult to get andbest for you, speak to home building professionals.
you may be required to pay cash for theA great place to start is to talk with and hire a
purchase of the landhome building coach.
- A lot of skilled and licensed labor may beRead, study, and learn all you can before you
required to build a home from scratchmake your choice. It's a great experience either
- From beginning to end, it can take two yearsway.
for some home-building projects