Whether you are a first time home buyer, looking for your next home or looking into Canadian real estate investing from a professional perspective, there is one common question that everyone has to consider – Do I buy or build for my next real estate investment?
The answer to this question is not always cut and dry, therefore, you will need to consider factors such as the current mortgage rates, property trends, and what the best real estate investing strategy is given the current state of Canadian real estate.
Let’s take a look at the benefits of each:
The benefits of building
There are a number of benefits to building a home. Here are the most common:
You can build the house to have all of the custom features, layout, and amenities that you want in your home.
You will not have to compromise on features or undertake a renovation project to get your home looking the way you want it to.
You can build the home with energy efficiency in mind, which will save you money automatically on energy costs and boost the resale value of the home instantly.
You won’t have to worry about any unforeseen issues with the home resulting in a renovation project that will cost you more money down the road.
- You can control the products and building material that are used to build your home so there will be no safety issues down the road that often creep up in older homes.
The benefits of buying
There are also many benefits when you decide to buy Canadian real estate rather than build. Here are some of the most important benefits:
Overall, buying tends to be less of a time commitment and hassle than building.
You can find real estate in a preferred location in your city. When you build, you are restricted to where you can buy, unless you buy a property and plan to rebuild on the land.
You will be able to move in much quicker than if you were to build a home.
- You have the advantage of waiting until it is a buyers’ market, which it is right now in Canadian real estate. If you build, you are always risking that your home value could fluctuate based on market conditions.
The decision to buy or to build is not an easy one. You need to take a look at your current situation, consider the best real estate investing move based on property trends and mortgage rates and make the best decision based on the current Canadian real estate market.