Buying vs. Building: Deciding Between Purchasing or Constructing a House in Nigeria
The decision to acquire a home is a significant milestone in your life, and for anyone considering real estate investment in Nigeria, the choice between buying an existing property or building from scratch is paramount. In this insightful guide, we explore the pros and cons of both options, to help you make an informed decision that aligns with their needs and aspirations.
Buying a House: Convenience vs. Customization
Purchasing a pre-built house offers buyers the advantage of immediate occupancy and minimal waiting time. Ready-made homes are readily available on the market, this enables you to move in swiftly without the delays associated with construction. If you are seeking convenience and a hassle-free buying process, purchasing an existing property may be the preferred choice.
Limited Customization Options
One of the drawbacks of buying a house is the limited scope for customization. Pre-built homes come with predetermined layouts, designs, and finishes, leaving you with little room to personalize the space according to your preferences. If you have specific aesthetic tastes or functional requirements, you may find this lack of customization restrictive.
Building a House: Tailored to Perfection
Constructing a house from the ground up offers you unparalleled freedom in design and customization. You have the opportunity to work closely with architects and builders to create a home that reflects your unique vision and lifestyle. From choosing the architectural style to selecting materials and finishes, you have full control over every aspect of the construction process. The same is not the case with pre-built houses.
Time and Effort Investment
Building a house requires a considerable investment of time and effort, from securing land and obtaining permits to overseeing construction activities. Not to withstand the option of outsourcing the supervision of the construction, you still have to invest time to follow up and confirm construction progress regularly. You must be prepared for the challenges and complexities associated with the building process, including coordinating with contractors, managing timelines, and adhering to budget constraints. While building a house offers customization benefits, it also demands patience and commitment. If this is a deal breaker for you, you might have to consider buying a pre-built home.
Financial Considerations: Cost Comparison
When comparing the financial implications of buying versus building a house, you must consider various factors such as land acquisition costs, construction expenses, and market trends. While purchasing a pre-built home may entail upfront costs, building from scratch allows you to control expenses and potentially save on construction costs by sourcing materials directly. However, for an inexperienced homeowner, mostly first time builder, employing the services of a Quantity Surveyor will go a long way to help you avoid misappropriation of funds during construction.
Let’s say you decide to erect a 5 bedroom duplex in Ajah, Lagos on a 500sqm land. You will take into account the cost of land acquisition which ranges between N40 — N75 million for 500sqm. Then you consider the hidden charges which on average is between 15% — 30% of the land cost. Next, you consider architectural cost which ranges from N3.5 — N15 million depending on the design, expertise and years of experience of the architect.
Now, let’s consider the cost of building. From rods, planks and bamboo to cement and gravel, plus labor, you have to budget an additional N35-N55 million. This is excluding the interior finishings and furnishings. It is safe to assume that there is no cap on finishing and interior. But if you’ve not sat down to calculate this, you would believe that a N200 million 5 bedroom duplex in Ajah, Lagos is overpriced. But after conducting your research, you quickly realize the price is within reach.
Long-Term Investment Perspective
From a long-term investment perspective, both buying and building offer potential returns on investment. You can benefit from market appreciation and resale value, while homebuilders can realize value through the customization and quality of construction. You should assess your financial goals and preferences to determine the most suitable option for their investment objectives.
Conclusion
In conclusion, the decision between buying or building a house in Nigeria rests on individual preferences, lifestyle requirements, and financial considerations. While purchasing a pre-built home offers convenience and immediate occupancy, building a house provides unmatched customization and personalization options. You must weigh the pros and cons of each option carefully, considering factors such as cost, customization, and long-term investment potential. By making an informed decision, individuals can embark on their homeownership journey with confidence and clarity.
