Building a house compared to buying

The savings that can be made when you build is quite obvious, if properly done. It is quite possible to build a five bedroom house in Lekki for N30m with cost of land inclusive, but the same property on the open market could be going for N45m to N50m, sometimes, depending on the area, the difference could even be up to as much as 50%.

The second advantage is that the house can be built to your own taste.

Thirdly for those who don't have access to mortgage, it allows them to spread the cost over the duration of the project instead of a major payment.

Despite these advantages some might argue that the disadvantages somehow outweigh the advantages.

One of the main disavantages of buying developed property is that it's safer than buying land. While anyone can scam you by pretending to be the owner of land, with a building it is much more difficult and so also most developers would have sorted out any issues on their land before building.

The second disadvantage is to do with the construction of the building. The contractor can run away with your money, do a bad job, double or even triple the amount of the building project etc. 

Another disadvantage is the time required to supervise the building project to ensure that the contractor does not run away with your money or do a bad job. You just might not have the time due to work, and in the case of Nigerians in diaspora, this can seem impossible, except you're self employed and can take time off as much time as required, most employers don't give lenghty holidays.

Although there are risks involved in building rather than buying, but when these is weighed against the savings one would make, this makes building quite an attractive option remember the difference could be as much as 50%. One of the most important things to do before building a house is to get equipped with enough knowledge on the things that could possibly go wrong and then try and reduce or eliminate those risks.

The very first thing that must be done by anyone who intend to build a house is planning. 
 


 

To be continued