What is better, build or buy a house?

One of the most frequent doubts of people who think about requesting financing to have a home is what is more convenient, whether to request a self-construction loan or a mortgage loan. Let’s see some aspects that you should take into account before deciding:

Self-construction credit: advantages and disadvantages

The most obvious advantage of building over buying is that you can design your home to your liking and with the materials that seem best to you. This is important for people who prioritize their preferences over the practicality of buying a ready-made home. We can also highlight that the house, being new, will not have deterioration or need remodeling.

On the other hand, an important factor that could be considered a disadvantage when opting for a self-construction loan is the time investment involved in starting a new work. On average, the time it takes to build a house is between 12 and 24 months, although it can be less considering the size. Even so, it always requires a greater investment of time and effort, since it implies getting involved in the construction loan process to visualize how the work is going.

Another drawback of requesting a loan to build a house is that, due to poor planning, the financed budget runs out without having completed the house. This forces the debtor to stop the work while he gets the rest of the money, while he has the credit debt on top. It may also happen that the materials run out or are greatly appreciate due to an economic phenomenon in the country, which will make it easy for you to get out of the budget.

Mortgage credit: advantages and disadvantages

If your goal is to obtain a home in a short time, it is best to apply for a mortgage loan, since buying a house gives you immediacy. In addition, you can always choose a new house, without details of installation or previous use. Even if it needs some change to adapt it to your taste, the expense will be much lower.

Another advantage offered by buying a house is the greater offer in urban areas, which is very convenient if you are looking for your home to be close to your work. In addition, the legal process of building the house will already be done and you will only have to sign the papers.

For its part, requesting a mortgage loan is usually a larger sum, which in many cases translates into a longer term to pay it. In addition, you must have between 25% and 30% of the value of the home (including hiring costs), which requires that you have prepared more in advance.

Now that you know the best credits for the self-construction of your home, you have more tools to correctly choose the type of credit and the entity that offers you the best or more benefits, but do not forget to check other options that you can find.

Best self-construction loans – BICE

Banco Bice offers its Housing Construction Credit, for the total amount of the estimated value of the work. The money is grant to the client while the work progresses.

Credit is characterize by the following aspects:

  • You have two options for repayment of the credit: one, to pay the interest during the construction and the capital at the end or pay the total at the end of the construction.
  • Banco Bice will make the amount of the credit clear to the client, which helps control expenses.
  • The total amount of the financing will be placed in a Time Deposit, which will be redeemed during the work.
  • The Link Credits are grants based on the progress of the work, you can pay the interest monthly and the total credit at the end of the construction or both at the end. These link credits are grouped at the end and make up a Mortgage Credit.


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