When you are planning to have your own home, and you feel like you are ready enough to have one, the tug of war between buying and building is something that your mind wouldn’t know which should win. Each decision has its pros and cons that may affect your living in ways that could bring hassle.

Here we have compiled the reasons why building your own home is more practical than buying one.

Pros and Cons of Building Your Modern Home

building your own home

What does it take to build your own home? Here we will be listing out the pros and cons of building your own modern home.



Not second-hand, not pre-loved. Building your own home means stepping into the readiest move-in home ever because everything in there is new. You don’t have to worry about repairing, remodeling, and remaking things because you know it is newly built.


New windows provide better insulation in the winter, and they keep the cool in the summer. With your new home, you may choose to install energy-efficient toilets and electrical fixtures, or you can install other environmentally friendly home technology with great features, and new appliances. Aside from being eco-friendly, it will also save you money on utility bills.


Remodeling, updating, and renovating costs a lot more than buying. When you want to make sure that every material, appliance, and fixture is going to last in the long run, new construction can give you that assurance. Imagine buying a house and fixing its pipe only to have another pipe fixed after a couple of months. The reassurance of new, modern, and low-cost yet long-lasting materials is everything.


Throughout history, building codes have changed to protect residents, neighborhoods and the environment. New and more safe technologies are being incorporated as building codes change over time, this is to ensure the security and safety of the neighborhoods and the environment. Building a new home ensures that your home is up to code and offers no grandfathered benefits.



Planning, designing, and the building process cost time. There are a lot of things to consider when building a home, like the home builders, the deliveries of materials, and the construction time frame. There can be human errors and weather distractions along the way. If you can’t give the time your house needs to be built properly, building your own house is not a good option.


Since you are building a house from scratch, everything is new, and costly at the beginning and the chance of price bargaining and negotiation could be small. There could also be extra expenses that could come up as your home is being built, unlike buying an existing home with everything else being built.


Maintaining the landscape, especially when you’re still about to have it designed, the construction noises and deliveries themselves can be a responsibility you must face at the beginning. You have to consider your neighborhood, unlike the existing one, in which the neighborhood is established.

Pros and Cons in Buying Your Modern Home

Buying a modern home can’t be, totally, the worst option. If you want a move-in-ready place or you have a tight budget, this can be your option.



If you are on a tight budget, or you are not budget-ready for a newly constructed home, buying an existing one is exactly what you need. You won’t have to spend too much money upfront, and you may negotiate with the real estate broker or the homeowner.


There are numerous existing homes that you may choose in the housing market online, this way you may be able to choose the location you want, and the ideal neighborhood for you, in which you can move in right away.


Buying an already constructed home is the easiest way to move in especially when the home is either already emptied or the owner negotiates with moving out right after closing the deal, which makes it easy to move in right away.



Older homes have outdated spots or things that need to be fixed. You must expect repairs and remodels or totally renovate it for your own safety and comfort. Though buying an existing home will cost you less upfront, the “hidden fees” that you will be spending are not practical like upgrading its designs or flooring.


Purchasing an old home means keeping up with its design because if you want to have your own home, it is quite pointless to buy an old one just to fully repair it to the layout and floor plan that you desire. You may be able to change a little to your newly bought home, but you can’t really customize it into something you dream of because of the fixed layout.

Things To Consider Before Building Your Modern Home

So you have decided to build a new home. You have read the pros and cons and considered it all. There are many factors that you must consider before starting your home construction. Here we have listed some things you should consider.

Location & Adjustment

Your ideal location isn’t enough to decide that you want your home constructed on that site. You have to survey the land (usually done by a land surveyor and not the architects) to know the right size of the land and if it fits the size of the house you wanted, A lot of times soil testing is necessary too, so you’ll know if the foundation of your home is safe and compatible.

Zoning is also important because this determines the type of house you must have. One important thing is the neighborhood, in which you have to consider the adjustments you will need especially when the construction starts.



Budget is everything when deciding on new construction. From buying land, hiring home builders, size, design, and each and every payment you must settle, how your home will be built is up to your budget. Aside from setting up a time frame, you must also do the costing to be able to keep track of your expenses.

Market Trend

market trend modern home

What type of home is on the housing market trend? Consider market trends on your home construction because this will attract buyers in days! Since the real estate competition on buying homes is fast and easy these days. Once you decide to sell your house in the near future, the resale value will surely rise on the market trend.

Property Tax and  Homeowners Assoc Fee

property tax and asoc fees

Taxes levied by county governments on properties (usually real estate property) are known as property taxes or millage taxes. Your tax rate will be proportional to the assessed value of your home, so the higher the value of your home, the higher your tax will be. If your new home is a part of the National Homeowners Association, you must also be ready for the fees it requires to maintain common areas in your community such as patios, swimming pools, elevators, and landscapes.

These fees must be paid responsibly, for property taxes can define the value of your newly constructed home, and HOA fees are there to assess you with the common areas you are about to use.

New Builder

home builders

A new builder is important and plays a great role in your house’s completion. Hiring the general contractors and subcontractors is a must and should be included in your budget, most builders have some subcontractors’ suggestions. It is also important that you get to know their experiences and the services they offer and include them in the total payment.

While general contractors are responsible for building your house, a custom home builder is the one to create your blueprints and floor plans, which you may want to consider in hiring too.

Why It’s More Beneficial to Build Your Modern Home

Your newly built home does not just have personal advantages. You will also be entitled to different benefits such as the following:

You Call it Your Own

personalize your modern home

You planned it, you designed it, you exerted an effort to it. You are the first owner, it is yours to be proud of. Aside from having a higher purchase when trying to resale, nothing feels like having to live in a home you built on your own. The feeling of comfortability, the customized style that suits your lifestyle. No need to pay for higher mortgage fees, no need to think about repairs and renovations, meant to last longer.

Mortgage Interest Deductions

Mortgage Interest Deduction allows you to borrow money to build a house without paying its interest. The mortgage interest deduction is normally only available to people who live in a fully built house, and you can’t live on something that’s still about to be constructed. Fortunately, you are entitled to a tax deduction when construction is taking place.

The interest you paid on the construction loan within 24 months before the home was finished can be deducted as long as it becomes your principal residence or secondary residence on the day it’s ready for occupancy.

Property Tax Deductions

tax deduction @americanlandlord

To keep the discussion straight, you cannot have a Property Tax Deduction if you don’t own the property. This is one of the advantages of building a new home. Homeowners can deduct interest paid on this loan from their taxes, reducing the amount they will have to pay to the government.

Also, homeowners can use the sales tax deduction to deduct any state sales tax they have paid. In the case of building materials, this could include taxes paid on sales that exceed the standard state and local income taxes.

Preferential Tax Treatment

If you think only the wealthy get preferential tax treatment, you are about to change your mind. Earning without paying taxes in a span of a year or two could be possible in a legal way. Owning a house and having potential incomes on investments that give out incomes allows you to have preferential tax treatment and receive valid deductions.

Capital Gains Exclusion

This is one crucial capital gains tax exemption by the time you decide to sell your house, and this exclusion can only be obtained when you pass the ownership and use test. Which will be easy if you build a home of your own.

Mortgage Reduction Builds Equity

build equity with your modern home @bankrate

Through this program, you can lower your mortgage principal – and often your monthly payment as well. When you close on a home, you will have some equity in it unless you are qualified for a loan that requires no money down. This is one important thing you may be able to benefit from building a home.

Equity Loans

Equity loans or second mortgages is home equity loan originated by mortgage lenders who let homeowners borrow against the equity in their homes. You will be qualified to loan on top of the loan you have to build your house, to be able to use it on investments or payments to be able to pay your first loan.


customizing your modern home

You don’t have to look at anyone’s floor plan, you get to customize and build your own floor plan, which is one of the main ‘pros’ in building a new house. You don’t have to settle for less, everything you want for a house can be everything you get from a number of rooms, bathrooms, house add-ons, and every single detail that you want that fits your lifestyle.

You won’t have to know which space is not essential and must be renovated, because it is all custom-made for you!

Final Thought

When choosing your next home, it is important to choose wisely what’s essential to the things you consider. While buying an existing home has its advantages, there are many cons and things to consider other than building a new one.

When achieving your own dream house that is guaranteed to last long and customized just for you, it is practical to plan on building your own home, It may take longer time to build, but it will save you some time to keep on repairing and renovating.


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