Build Or Buy? A Practical Guide For Making The Right Decision

Deciding whether to build a home or buy an existing property is a decision that goes far beyond price per square metre or architectural preference. Timing, location, risk tolerance, lifestyle needs and long-term costs all play a role, yet many buyers only fully appreciate these factors once they’re already committed. Another critical factor is how much involvement you realistically want in the process.

There is no universally “correct” answer, but there is a correct answer for you and understanding the real trade-offs can help you avoid costly surprises and choose the option that best aligns with your priorities.

Lew Geffen Sotheby’s International Realty shares practical, clear-eyed advice to help you to make the build-versus-buy decision, cutting through assumptions and sales talk to focus on real-world implications.

From timelines and budgeting to stress levels, flexibility and future resale, we explore the trade-offs that matter most. Whether you’re drawn to the control of building or the convenience of buying, understanding these dynamics upfront can help you make a decision that supports both your finances and your day-to-day life.

The Case for Buying an Existing Home

• Buying an existing property is often the faster, simpler route. Once the offer to purchase is signed and transfer is complete, you can move in — sometimes within weeks.
• Speed and certainty: An existing home offers a clearer timeline. You know exactly what you’re buying, where it is and how it fits into your daily life. For buyers relocating for work, growing families, or those needing immediate accommodation, this certainty is invaluable.
• Established neighbourhoods: Older suburbs often come with mature gardens, developed infrastructure, schools, shops and transport routes already in place. You can assess traffic patterns, noise levels, security dynamics and neighbour behaviour in real time.
• Lower upfront risk: With an existing home, most costs are visible upfront and, while maintenance and upgrades may be required, they are usually incremental rather than all-consuming. Financing is also simpler, with banks more comfortable lending on completed properties.
• Room for negotiation: In many markets, buyers can negotiate strongly, especially where sellers are under time pressure or where homes require modernisation.

However, buying is not without downsides.

The Drawbacks of Buying

• Compromise is inevitable: Even the best home will likely require trade-offs. Layouts may not suit your lifestyle perfectly, storage may be insufficient or energy efficiency may be poor by modern standards.
• Hidden maintenance: Older homes, especially, can hide expensive issues, outdated electrical systems, plumbing problems, roof wear or non-compliant alterations can all be costly problems down the line. While inspections help, they don’t catch everything.
• Cost of upgrades: Renovating to suit your tastes or improve performance can be disruptive and expensive, especially when working around existing structures and municipal approvals.
  

The Case for Building a Home

Building offers a powerful sense of control. You’re not adapting your life to a house, you’re shaping a house around your life.

• Design for your lifestyle: From room sizes and orientation to storage, home offices and outdoor flow, building allows you to design with intention. Features like energy efficiency, solar readiness and modern insulation can be built in from day one.
• Modern standards and compliance: New builds must meet current building regulations, often resulting in better structural integrity, electrical safety and water efficiency and durable construction. Maintenance costs are typically lower in the early years.
• Potential cost efficiencies: While building is expensive, you’re not paying for features you don’t want. In some cases, building can deliver better value per square metre than buying and extensively renovating.
• Long-term satisfaction: Many homeowners find greater emotional satisfaction in living in a home designed specifically for them.

But this path comes with significant responsibilities.

The Realities and Risks of Building

• Time and stress: Building almost always takes longer than expected. Delays due to weather, labour shortages, supply issues or municipal approvals are common in South Africa.
• Budget overruns: Initial budgets are rarely final budgets. Material price fluctuations, design changes and unforeseen site conditions can push costs well beyond expectations.
• Decision fatigue: From tiles and taps to roofing and lighting, building requires hundreds of decisions. For some, this is exciting; for others, it’s exhausting.
• Financing complexity: Construction loans are usually released in stages and require regular inspections. Cash flow planning is critical, especially if you’re paying rent or a bond elsewhere during construction.

Location Plays a Bigger Role Than Many Expect

Your choice may be significantly influenced by where you want to live.

In established suburbs, vacant land is scarce and expensive, making buying an existing property more realistic. In developing areas or estates, building may be the only option but that often means is a bare site and gardens must be developed from scratch. There may also be fewer local amenities.

Estate living also introduces additional considerations: architectural guidelines, building timelines, contractor approvals, and levy structures. While estates offer security and amenities, they also limit flexibility.

Consider Your Risk Profile and Personality

This decision is as much about temperament as it is about money.

If you value predictability, dislike uncertainty and want minimal disruption, buying is often the better fit. If you enjoy planning, problem-solving and managing complexity, building may be deeply rewarding.

Ask yourself:

• How much time can I realistically devote to this process?
• How comfortable am I with delays and cost fluctuations?
• Do I enjoy making detailed decisions under pressure?

Being honest here can save enormous stress.

Financial Planning Beyond the Purchase Price

Whether you build or buy, think beyond the headline cost.

For buyers, factor in transfer duty, legal fees, immediate repairs, and future maintenance.

For builders, include professional fees, municipal charges, landscaping, boundary walls, driveways and contingency funds of at least 10–15%.

Also consider resale value. Highly personalised homes may be harder to sell, while well-located, adaptable properties tend to perform better long-term.

There Is No Wrong Choice - Only an Informed One

Some South Africans thrive in custom-built homes; others are happiest upgrading and adapting an existing property over time. The mistake is not choosing one over the other, it’s underestimating the demands and limitations of either.

Take your time, run realistic numbers, speak to professionals and align your decision with how you actually live. A home should support your life, not dominate it. When your choice reflects both your practical needs and your personal tolerance for complexity, you’re far more likely to end up satisfied, long after the dust settles.