Deciding whether to buy a land or house can be a tough decision as both options come with their inherent benefits and vice-versa.
However, certain factors like electricity, good road network, recreational facilities, portable water supply, among others, can help you decide which of the options will suit your present need.
Additionally, the following comparisons can also aid your final decision as to which suits you best at the moment depending on your current needs;
1. Initial Capital Expenditure
Purchasing land to build typically involves lower initial capital expenditure when compared to purchasing a house.
This option is usually attractive to buyers who have limited access to funds but desire to get a foot into the property market or own their first home.
2. Burden of Responsibilities
When buying land to build, the buyer takes up the burden of various responsibilities like the cost of the land, design fees for consultants (architecture, structures, mechanical & electrical), planning approval, certified true copy of title documents, various taxes, etc.
On the other hand, the burden of all these responsibilities is transferred to the developer if the buyer decides to purchase a home. This translates to less stress and responsibility on the buyer.
3. Limitations of Control
Purchasing a home usually deprives buyers of the choice of design, finishes, and quality standards delivered by the developer.
This can be a source of frustration if quality standards fall below expectations.
As a result, the purchaser may need to spend additional finances to correct the defects and retrofit the development to satisfy his or her taste.
In contrast, land purchase offers the buyer more control over the entire building cycle and final product outcome.
Buying land and having your own home built according to your specifications may be a much more attainable option if you are particular about the selection and quality of the finish, design features, cost control, and timely delivery.
To bridge this gap, innovative developers such as ATCO Homes have taken the initiative to deliver Luxury Homes to their buyers to suit their specific needs.
4. Cost of Development
For residential estates, developers can take advantage of economies of scale to lower building costs.
The cost savings realized can subsequently be passed on to the buyers, reducing the cost of purchase.
Shared costs typically include power, stand-by power system, water supply, sewage, infrastructure, security, and overall maintenance.
In contrast, individuals who purchase land directly are solely responsible for the developmental costs for utilities and infrastructure which can be high.
5. Opportunity for Secured Communal Living
‘Custom-built’ residential estates offer a sense of security for potential homeowners when compared with individual land developments.
These shared spaces can provide unique access to shared recreational spaces like swimming pools, gyms, outdoor recreation, congregation areas, well-landscaped areas, neighborhood shops, shared IT infrastructure among others.
In estates that are well maintained and secured, this sense of communal living has a positive impact on the mental health and wellness of the residents.
6. Appreciation Value Over Time
A property’s physical structure tends to depreciate over time, while the land it sits on typically appreciates because it is in limited supply.
The degree of depreciation and/or physical obsolescence differs from one property to another.
If left alone, properties continue to depreciate until they no longer add value to the land.
Therefore it is the responsibility of both the homeowner and estate managers to ensure that the properties are well maintained over the years by adopting the best maintenance strategies.
At ATCO Homes, we ensure that you get the value you deserve which is why we provide you with the best property that will surely suit your immediate need.
Are you still finding it difficult to decide whether to buy a land or house?
You can speak with our team of experts for proper guidance on 0905-555-5446 or 0811-205-3333 to get started!