The pros and cons of buying a house under construction
Buying an unfinished house has the advantages of cutting short the time for construction and some of the expenses. Photo by Racheal Ajwang
What you need to know:
• Unfinished homes may not be all that economical because you are confined to the original plan. It may need changes that are not economical, which takes away the benefits of having purchased it for a cheaper price.
• Sometimes, the foundations can be cracked or subsiding, waterproofing can be inadequate, structures can be out of line and plumbing and electrical wiring can be so inefficient that it has to be replaced. It is, therefore, advisable to hire a trained person who knows what they are looking for to help you figure them out.
The biggest benefit of constructing a house from scratch is that the owner gets an opportunity to personalise the details of their house while building; from the foundation to materials used, appliances and finishes. Peter Wamala, the manager at Legacy Homes, notes that unfortunately building a house can be more complicated than it appears, so sometimes it is not worth any price.
Cost
Raymond Angaya, a property developer, says buying an unfinished house might save one on time and the stress resulting in registrations and construction. “I would strongly advise anyone who has enough money to buy land and build, but if your budget is limited, go for the unfinished house and complete it,” Angaya advises.
He recounts that his first buy was an unfinished home that went onto the market because the previous owner wanted a cash bail out to save his business. “I remember I bought the two-bedroom house in Seguku and at Shs28m in 2005, I completed it and sold it three years later at Shs75m.
It was the greatest investment I ever made and it allowed me to start my career as a property developer,” Angaya narrates. “People are usually concerned about the design of the house or the quality of the materials used, but with a good engineer, you would be surprised how much a house can improve,” Angaya adds. Wamala, says someone who buys a semi-finished house is already one step ahead since they do not have to buy a plot as well.
Time
Buying an unfinished house has the advantages of cutting short the time for construction and some of the expenses. He compares the process to that of a mother who goes through the natural process of pregnancy and birth and one who adopts a seven-year-old child.
“Buying a semi-finished house does not only cut short the time but it also makes economic sense. Why do you tech billionaires no longer develop technology but choose to buy from developers? Because this cuts the cost and hustle down. The same logic can be applied to housing,” Wamala explains.
He is optimistic that when one gets builders who know how to complete the property, they can help you to customise it properly so that even if you have bought someone else’s dream home, you manage to put a bit of your own taste into it.
Buying a house under-construction is a win-win situation for both buyer and seller as the seller gets a ready set of customers even before laying the foundation while the buyer gets cost benefit. File Photo
Barnabas Tumwiine, a property developer says his business thrives on buying semi-finished houses, completing them and selling them at a profit.
“As a business model it has worked for me because the right price and the right location, the numbers on any unfinished house or neighbourhood can be a great deal. You just have to be thorough with the due diligence,” Tumwine says.
Do your research
He observes that people do not just go out of their way to sell unfinished homes. “Unless the issue was lack of funds on behalf of the owner, the truth is you never really know what sorts of problems you might be buying. Sometimes the house might be under contention causing legal problems or the land on which it is built might be a wetland. So one needs to be extremely careful while purchasing a property especially one whose deal seems too good to be true,” Tumwine cautions.
What to buy
The best houses to buy are distressed assets from banks that are on auction. Tumwine also recommends those houses that were started but never finished when the builder ran out of cash.
Hasfah Nakazzi, a site manager, says another advantage of buying an unfinished house is that the owner, would most likely, have used the best quality materials and followed the right building practices.
“But if you are buying from someone you have reason to doubt, take time to find out what is really behind the walls,” Nakazzi says. She says a thorough inspection of the property is a must when deciding whether to take on an unfinished house. “The physical inspection needs to include a detailed analysis of the age of the house and the exposure to rain and sun. The bricks and wood should have been protected,” Nakazzi advises.
She says the perfect house is one that has not been left for more than one year because even if a house is at the drywall stage, there can be issues from lack of use. “If a house was well protected it will have a relatively small cost to complete,” she adds.
Inspecting the property
Know what you are buying.
A. Legal issues. Find out why the person is selling and whether they are the rightful owners of the property. Make sure the tittle they give you is legit.
B. Physical review. You need to do a thorough quality assurance inspection to determine the quality of the prior work and the extent and cost of any needed corrections. This is especially important if the homes have been exposed to the elements for an extended period of time.
