Why buying land and building your property is cheaper than buying one

 In developing countries like Indonesia, it is better and cheaper to buy land and build property then buy from a developer and lend from a bank.Al though debateble here are the arguments.

Buying land and building your own property can be a cost-effective option for homeowners. While many people assume that buying an existing property is the more affordable option, the reality is that building a new property can save you money in the long run. In this article, we'll explore the reasons why buying land and building your own property is cheaper than buying an existing property.

Customization:

One of the primary advantages of building your own property is the ability to customize it to your needs and preferences. When you buy an existing property, you may need to spend money on renovations or upgrades to make it fit your lifestyle. With a new build, you can design the property to your exact specifications, which can save you money on renovations down the line.

Energy Efficiency:

New homes are generally more energy-efficient than older homes. When you build your own property, you can incorporate energy-efficient features such as solar panels, high-efficiency HVAC systems, and insulated windows. These features can help you save money on your energy bills in the long run.

Lower Maintenance Costs:

Older homes require more maintenance and repairs than newer homes. When you build your own property, you can incorporate modern building materials and technologies that require less maintenance. This can save you money on repair costs and help you avoid costly renovations in the future.

Lower Property Taxes:

Newly built properties are often assessed at a lower value than older properties, which can result in lower property taxes. Additionally, if you incorporate energy-efficient features into your new build, you may be eligible for tax incentives or rebates that can further reduce your property taxes.

No Hidden Costs:

When you buy an existing property, there may be hidden costs that you're not aware of. For example, you may need to pay for a new roof or HVAC system shortly after moving in. With a new build, you'll know exactly what you're getting, and there are no hidden costs that can surprise you down the line.

Better Financing Options:

Building your own property may offer better financing options than buying an existing property. For example, construction loans may offer lower interest rates and longer repayment terms than traditional mortgages. Additionally, some lenders may be more willing to work with you if you're building your own property, as they can be more confident in the value of a new build.

In conclusion, building your own property can be a cost-effective option for homeowners. By customizing the property to your needs, incorporating energy-efficient features, reducing maintenance costs, lowering property taxes, avoiding hidden costs, and securing better financing options, you can save money in the long run. While building a new property requires more upfront costs, the savings you'll see over time can make it a more affordable option than buying an existing property.