Things to keep in mind if you want to build a home in 2023

If you're planning to start a custom home build, tons of questions may be running through your head. You may think about the construction costs, the project timeline, the ROI and whether building a house in 2023 is the right decision. Considering the current market conditions, it only makes sense to be uncertain about this project – after all, you're making a significant investment. To this end, we’ve created a comprehensive guide, so that by the end of this article, you’ll have all your questions answered.

Is it a good idea to build a house in 2023?

Cost is one of the most critical aspects of building a home from scratch. Historically, construction cost has tended to be lower during recessions due to the increased availability of labour and decreased demand for construction services. Different factors may affect the construction expenses in 2023, such as the availability of financing and the money you need to spend on the materials. Building materials had dramatic price fluctuations in the past few years, and this volatility was caused by the supply chain issues that began during the COVID-19 pandemic. However, mass-scale new construction is experiencing low demand, making the lumber market more stable. This stabilisation doesn't mean lumber prices will fall, but it indicates that dramatic pricing spikes won't longer be an issue. Fewer price fluctuations may translate into opportunities for prospective home builders.

On average, building a new home costs around $500,000 in 2023, but this depends on different factors, such as size, region and materials. Besides building, other aspects should be considered when determining expenses, such as purchasing a lot, procuring permits, and getting the land ready for construction.

What are the benefits of building a home?

If you've pictured your dream home a hundred times already and your budget allows you to build it, there is no reason why you shouldn't embark on this journey. If you have construction experience and plan to design and build the home yourself, you may even save some money along the way, as you don't need to hire an architect and contractor. Before you begin construction, one essential step is obtaining the necessary permits and approvals from your local government. Once you do so, you can start working on your project. An important part of the process is to gather all the necessary materials and transport them to the location where you want to build the home. Since the materials are heavy, it is crucial to invest in safety equipment that meets the DVS standard so you can see clearly through the vehicle's windows and avoid accidents.

Building a home comes with significant benefits, such as:

• Maximising functionality: Building a home allows you to customise it based on your personal needs and preferences. This means you can make the most of the space and not compromise.
• Avoiding bidding competition: Ever since the pandemic, home purchasing has significantly increased, turning into a seller's market, with a fierce race to provide the best possible deals. However, this competition is inexistent when building a house.
• Using smart technology: The current climate crisis is hard to ignore, and everyone must take responsibility and play their part in protecting the planet. Building your own home from scratch gives you more control over your choices, making your living space more eco-friendly and tech-savvy. There are different ways to do so, such as using improved water conservation systems or solar panels.

Location is a vital aspect to consider in this project

You've probably heard before that location is everything. Well, this statement is true, as the value of your home and the quality of your life are highly linked to the chosen location. Hence, you should examine your needs and household to make the right choice. Consider whether you want to live in a central area where you can easily access amenities or prefer a more peaceful place. Maybe you need a big lot to build your home. Or perhaps you believe a small and cosy one is better. Whichever the case, make sure to consider these things thoroughly, as they will impact the overall price and value of your investment.

While you may be tempted to save money by downsizing your location or lot size, it's vital to consider the long-term implications of this decision. For instance, living in an area that is more walkable or closer to family and friends can contribute to your happiness and improve the quality of your life. So, it doesn't make any sense to save a small amount and compromise on things that could otherwise benefit you in the long run. Now, this doesn't necessarily mean more expensive equals better all the time. Every project is unique, and every family has a different set of circumstances, so it all comes down to choosing what's suitable for your individual situation. Your investment will pay off if you choose a location you will love for the years ahead.

To buy or to build a home: which is better?

This question has no definite answer, as it depends on your circumstances. Both sides have their own pros and cons; ultimately, it is about choosing what is best for you. Building a home can save you money in the long run, eliminating costly maintenance upgrades and potential renovations. However, it can be more expensive than purchasing a home, and this is because the cost of the lot is also included in the fee.

There are also other advantages you get if you buy a property off-plan. For instance, the process is quicker, and there are fewer decisions you have to make. But there are also cons, like possible health hazards, including mould and pest issues. These can cause structural damage, meaning that you may need to pay for the upgrades, and the costs may be more significant in the long run. If you can't decide whether to buy or build a home, there's also the option of remodelling an existing one to get the best of both worlds. It's essential to have a long-term perspective when making such an investment, as this will help you make a decision you won't regret.