Is it Better to Buy or Construct a House?
Pakistan is on history’s worst economic slump. Commodities price and building materials are under influence of inflation continuing its upward graph. Many homebuyers and would-be property investors are considering the ways to yield better ROI. For homeowners and potential new home builders it is baffling to weigh is it Better to Buy or Construct a House? Next-Home Realtors offers sincere consultancy on building a new house from scratch instead of purchasing a pre built one.
What Statistics Say on Building and Buying House Trends?
As a guideline, it’s less expensive to purchase a house than to construct one. With respect to sizable plot and architectural design, constructing a house is more expensive than buying a pre-constructed home.
According to HBFC and Statistical Services of Pakistan, it is stated that the average building cost of new development ranges from Rs. 2.5 million (25 lakhs) 5 million (50 lakhs) for 3 Marla houses as of May 2022. Similarly, the middle-sized plot—5 or 7 Marla construction takes an average expense of Rs. 3 million to 1 crore. On the contrary, to purchase the same home is 40 lakhs to 1 crore. As indicated by the latest updates that homebuyers should hope to find from the Public Affairs of House Developers and HBFC (House Building and Finance Corporation) and the State Bank Statistics, it is comparatively cheaper to buy a home rather than building a home a new.
How Buying a Home is Cost-effective?
The average cost of building a new lodge will normally include purchasing a plot then registering it, excavations, foundation lay down, NOC, inspections, and other relevant costs. Therefore, it is cheaper to purchase a home rather than buy a plot and then construction takes place. This way, the direct House Building purchase is cost-effective as compared to constructing a house from scratch.
Apartments are even Cheaper
The statistical data on real estate reveals a significant drop in direct buying costs for those who already mean a lot of plots to build later. According to a study from the HBFC and State Bank of Pakistan, dating back to 2021-22, construction materials prices are higher than those of 2015-16, the purchase price for the apartments for sale has dropped from 18.5% to 25% due to inflation and lack of interest in buying. The total costs for new construction may also increase unexpectedly due to unbridled increase in prices.