Is it cheaper to buy land & build house or just buy one?

Answer 1

It is likely cheaper right now to buy an existing house due to the market, but I look at this as one of the signs that the market will have to turn around sooner or later?

You can also get a 1994 honda civic for less than a brand new one, but with the new one you get everything you want, with the used one you look for the deal/options available on the market at that time,... and then you get to fix it and fuel it up more often too, just like the used house.

Answer 2

In general it will be cheaper to just buy one. Even a new one from a builder in a subdivision.

Here's why:

You have to find available land.
There are expenses to prepare a lot for building, including utilities (water, sewer, gas, electric, etc.). If there isn't public water and sewer then you have to drill a well and do a percolation test for the septic. Builders spread the cost of this out over many houses and it makes it more economical. If a lot is already prepared to build, it's cost will be much higher.

When you say buy land and build, do you mean build yourself or hire your own builder. I'm going to assume you mean that you will be the general contractor (even if you weren't you would have to find a builder who would build on your lot and be willing to build just one house which would be more expensive than if they were building several in a subdivision).

Builders are general contractors and have done the logistics of building many times and have cut the waste down. They are familiar with building codes (some states won't let you be your own general contractor because of the codes). They also know good subcontractors and generally have good negotiating power with them.

Even if you managed to save a couple of bucks by doing it yourself, you will pay for it (through time and effort!)

good luck!

Answer 3

It all depends, If the land is cheaper by the acre, if you can find a contractor that can take care of all the aspects of the build, land development, utilities, etc. and if you can trust them, some of these guys are crooks unfortunately, If its your first home, I would suggest going to one of the first time home buyer classes given by Fannie Mae to educate yourself on the whole process, Good Luck!

Answer 4

In America, right now, and for the next few years. I would say buy a house out of foreclosure. Great deals.

But if you will personally do most of the construction yourself, building may be the way to go.