It used to be pretty standard that most young people starting out would often rent a home or a flat, and then a few years down the line, when things like career changes, marriage and children entered the picture, would buy a home.
While this is still the primary goal for many, a great deal of young, successful people are changing things up in the world of housing, choosing to instead build their dream home rather than buy one.
Photo Credit: Lex Photography
There are quite a few reasons for this trend. The housing market is such that for many, building a home makes as much financial sense as buying one. Often, land is obtained cheaply, and many young people have found that they can build a home for around the same budget as they could put into a mortgage payment.
Building a home
Building a home yourself gives you a level of control over your investment and ups property values as well; so it’s a win-win for the person who has the money and resources to build over buying.
Studies show that millenials are not buying homes outright as they did just a couple of decades ago, with many preferring to rent well into their thirties.
For those who do decide to invest in a home, a huge number of them have chosen to completely forego the real estate market and build their own home. One possible reason for this is that lenders and banks have tightened the purse strings and do not agree to home loans for young people as readily. Yet, when it comes to building a home, sometimes those rules are less strident.
Building is quicker than buying
Another possible reason for this is that building a home takes less time – buying a home is a process of a couple of months, with money needed upfront for closing costs, a down payment, etc. Many young people continue to live at home with their parents or roommates, saving and planning, while slowly putting money towards building, working “a piece at a time”, in many cases.
Design house plans
Some prospective home-builders are designing their own blueprints, or employing local, professional Residential Architects and other firms to design their house plans. Utilising an architecture firm ensures a home that is up to all the proper codes, that is safe and functional as well as on-trend. A consultation with an architect will ensure that you’re on the same page with your vision and that the home designed for you is done according to your specifications and preferences.
Building a home can be a stressful and involved process, and one that needs experts in architecture, construction, building, electric, and more. You’ll need to hire trusted professionals who will oversee every step with care. This is something that costs money; there’s no two ways about it. But for many young professionals, they’ve found that it’s an investment that is worth it, one that makes much more financial sense than buying a house off the market.