S2 Ep18 - Buy, Build, Or Rent - a podcast by Brian Cook And Kindra Cox

On Season 2, Episode 18 of The Brian and Kindra Show they discussed the pros and cons of buying, building, or renting. 

Brian and Kindra feel strongly about the right to own real estate and of course, encourage home ownership.  However, they understand that home ownership is not for every person!  Renting is a safer and wiser option for some.  Renting can be very attractive for someone who doesn’t want to or is unable to do various types of home maintenance, lawn care, and upkeep. Maybe one is in a situation where they are facing life decisions of where to live and work, if so, buying in today’s market may not be the best option.  In a competitive seller’s market, a buyer needing financial assistance with a down payment and closing costs may choose to rent and save until they are able to submit a more attractive offer. 

If home ownership is definitely the choice for you, your next choice may be to buy or build a home.  In Woodward, building is a long process. It’s further from suppliers, so getting the proper tools and equipment isn’t as easy as it would be in a metro area with greater choices for supplies and contractors. In Woodward you have to order ahead or go to multiple stores looking for what you need. The further from the metro areas, the more complicated the building will be. When it comes to contractors, there are a limited number of them in smaller communities and those tend to be very skilled and very busy!  This could mean a long wait for a contractor to be able to take on and complete your building project.  

Additionally, the idea of building is daunting for some people. It is often more expensive than intended. Financially, building a home requires a different level of financial commitment and loan availability. There is more at stake when you build because inflation of products will eb and flow depending on the supply at the time. This goes back to hiring a good contractor who can be preemptive on ordering supplies up front. When purchasing items for your new build, you might end up having to purchase the item you hate the least. 

Most lenders will not allow you to serve as your own contractor when building your home. They will often require a licensed and bonded professional. To apply for a loan to build a home, you have to provide the ground plans of the property complete with finishes to the lender. They will have an appraiser appraise the home based on that information, determining your budget to build the home. Inflation of products can put people in a bind as it puts them over budget and the funding may not be available to finish other parts of the property. 

When you talk to your lender, it might not be a bad idea to add 20% to your budget so you don’t have unexpected surprises. 

If you decide renting is not for you and building is daunting, the next option is to buy. Buying is perfect if you are only interested in some remodeling or a move in ready property. Home ownership allows you to have equity in your home and offers security that you won’t be kicked out (as long as you pay your mortgage). Buying is secure if you don’t like moving and want stability. Home ownership also allows you to make a house your home with your own choice of paint color and finishes or even pets!  

Brian and Kindra hope this information has been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

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