| Posted By: Blue Print Blog on 30th of October 2012 |
 
Buy or build is the first question every one desirous to own a home will deliberate on before settling on the means to owning a home. Whether to buy or build is dependent on many factors, one should weigh the options available to them so as to arrive at what will really work for them. Buy or build, either way there is a price to pay; the question though is which one are you willing to pay?
Land is a determining factor, whether to buy or build, the house will have to sit on some land somewhere, so the 64 million dollar question is which one? Owning land in the city is such a tall order.
First: there is scarcity of land in the city.
Second; even you find a parcel to buy it’s still a big risk. You’re never so sure that the one purporting to be the owner is the real owner, or whether the land in question is “grabbed” land.
Third; Even after due diligence in acquiring the piece land you’re always crossing fingers that no one will emerge from thin air to claim ownership of your treasured piece of this earth. There unscrupulous traders and corrupt officials at the Ministry of Lands. Incidents of land changing ownership without the real owner being involved are on the rise in our country. Then the issue of the government waking up one day to revoke the same title deeds they issued. Former Minister for Lands Minister once declared a Title deed as ‘ just a piece of paper’ after revoking title deeds. The drama of Syokimau demolitions is still fresh in our minds.
Building has it’s own fair share of challenges and in many circumstances it’s convenient to buy and bypass the challenges of acquiring land and the hassles of building. These include; 1) Construction Supervision; Never easy, especially when you do not understand the trade, you’re very much disposed to be taken advantage of by your fundis. Then just like every other trade, construction has its jargon as well, if you do not understand it then you won’t interpret it.
2) Time: Building takes time, when you do not have the time build then it’s just convenient to buy a ready one. A good example is when a guy in “Majuuz” or is it diaspora need to acquire a home during their short visits in the country. This is what may work for them.
3) Most banks have mortgage facilities, which are all about financing acquisition of an already built one, very few banks finance the construction process, this factor predisposes many to the option of ‘buying’ rather than ‘building’.
Building has it’s numerous advantages; 1) You have a say in what you want. Remember the one u bought was not your design! All you did was to fit in it.
2) If well managed, it’s far much cheaper to build than to buy. Property prices in Nairobi are exaggerated. Remember by the time you buy, you’ve loaded the profits of the land, the contractor, the developer and the interest of the bank. In most cases buying will cost you anything from 60%more to 300% more! It’s that crazy! Why accept to be exploited. Did you realize that by the time you are done paying the mortgage you have actually paid for two-and-a-half houses? Until the government caps the ceiling on interest charged on mortgages or any other loan, you are better of building or taking the construction loan.
My conclusion; if it’s convenient to buy, good for you, but bear in mind you’ll be squeezed to the last penny! If you can, build yours! You will be shocked to realize the savings you will make.
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