Building Vs Buying a House

I have been frequently asked this question by friends and have heard people argue about it..Am I better off building my house or buying?

So to set the record straight on the pros and cons of either building a house or buying one, they are several valid reasons that favor building but nonetheless, here are the explanations.

Time

Building a house is a full time job... well, at least a solid part time one. You will have to really manage the construction- keep track of costs, inspect the work daily, inspect the building materials, clean up the work site when workers leave it a mess, and secure the work site. And most importantly, you will have to keep and ensure the schedule. The schedule. It is extremely important. You have to take your time. Remember, you will NOT be able to comfortably live in the house while it is under ANY type of construction. Wait to move in until it is completely done. The schedule- your costs can double because the concrete guys can't work because they are waiting on the footings to be complete, or the inspector can't inspect because this isn't done, that's not done...the toilets aren't in because the plumbing isn't done... etc. etc. Fundis can't wait around without pay. And delays costs money. Make sure you give yourself ample planning and buffer time, and when someone doesn't show up, FIRE THEM and understand that you may have to reschedule everyone else.

Contractors

Contractors (the workers, the fundis)- these are locals and are normally lazy. You have to manage them like you are the warden and they are the prisoners. Be fair, be respectful, but be firm, make eye contact, and don't look away until they do. Be tough and speak loudly. “Massive pilferage only occurs when you hand over the project to some 'foreman'. Fundis hardly get an opportunity to steal. Fundis generally rob each other of tools. Your foreman is the main problem; he's the blood-sucking vampire. The best way to deal with fundis is to allocate production quotas. For example, each fundi for a walling per day must use up to 6 full wheelbarrows of mortar at 1:4 mix otherwise sack them immediately, same applies for plastering. Electrician is by contract for instance Sh.7,500 per every two bed roomed apartment completed. If you will not be at the site DAILY please add 1.2 million to your budget. If you hand over to a construction company, add 1-5 million to whatever budget you have. Purchase stones, ballast and sand in sufficient quantities, then take 3 months leave from work to be on site daily. Only pay cash at delivery for these materials and always verify quantities,” mwafrika31 advises.

A signed contract is recommended. Don't smile around them. Be extremely clear and to the point about what you want from them, and how you expect it to be done. Tell them: "You will not be paid for shoddy work, but for great work, you will be paid well!" Have a watchman watch the construction materials day and night, then have another watchman watching the watchman. Inventory your materials. Have other work for them to do (cleaning or landscaping, etc.) in case for some reason they show up, but can't work because you didn't properly manage the schedule. A bag of cement disappearing once in a while is nothing compared to the Markup your contractor will be making of the whole deal.

Architect and a structural engineer

Hire an architect and a structural engineer. They are your best friends. And before you give them that first visit, decide on EXACTLY what you want, how you want it, and then DO NOT EVER CHANGE THE PLAN that they create for you. I mean nothing. Not one bit. Don't add or subtract one nail, one block, one inch once the plans are drawn up properly. And remember, you may not want to live in this house forever, so, while you might think it nice to have a roof that slopes up steeply, then back down shallow, in the shape of your initials, remember, build something very nice but very generic, that all can enjoy, in case you ever need to sell it. Besides, it's location, then quality finishes, then size that sells. Custom junk, including electronics, custom paintings, overdone landscaping, super-duper toilets, etc., no matter how much you "invest" in them, loose value when selling the property.

Fact-finding

Get to know your city inspectors and what they expect. Get to know someone who has built a home in your area prior. Take them to a nice dinner. Ask tons of questions. They are your consultants. Treat them well, and they will reward you with money-and-headache-saving wisdom. Wisdom #1- make absolutely sure that you have an official title to the plot, and that there are no liens, claims, squatters, planned highways, easements, or right-of-ways that could interfere with your home in the future. Do indeed have the green card. Get an lawyer to help you with this. Understand that your house isn't on paper, or in a world unto it's own. Utility connections, driveway lengths, angles, and access, security issues such as trees, brush, gates, etc., set-back planning, types of soil, water and rainfall runoff, pests, bad neighbors, railroad or plane noise, bad smells from a nearby go down, mobile phone signal strength, which way the house faces, matatu access if your car breaks down, proximity to a police station, traffic, etc. You must consider ALL of these factors before building. Don't just build on a plot because you own it, or because it's cheap. Research all of these things and anything else you can think of before one shovel-full of dirt is moved. Camp out on the plot (if you own it, or with permission before you buy it) before hand... know what it is that you are getting into. Talk to people in the area.

Extra Cash

Have extra cash.. just in case something goes wrong, or there is an unforeseen problem or expense. If you take out a mortgage to build, make absolutely sure that you are very clear on when the bank is planning to disburse funds, and how much at a time, and what they require of the house, inspection-wise, to consider it CLOSED. ALWAYS have the money to pay people, and to buy materials ON TIME and CONSISTENTLY. Don't play games with paying people.

Buying.

This has it set if advantages, for example you save on time, and have no construction hustles.

A lot of considerations and facts rely on the mode of purchase. Is it on mortgage or a one-time purchase? If it is on mortgage you have to be careful read deeply through the agreement and make sure you don’t fail on repayments as you can loose the whole investment. Do your homework and comparison on affordable interest rates in the market. There is no much to say since there is little to alter on the house when you are buying.

When you build a house you get to build the house of your choice "dream House" that is more pocket friendly. Although it is hell dealing with the fundis it’s a worthwhile experience more so you can get a contractor to do the job. You also Improve the Return of Investment (ROI) when you build and no fear of imagining what would happen if things went south if on mortgage. And remember regardless of whether to build or to buy, it may make sense to invest in a conventional property, since idiosyncratic houses are generally much harder to sell. That said, with an ambitious aesthetic design, or if you plan to buy and stay in a particular house for decades (life time) weigh consider cost & mental implication before you decide.