Brick & Mortar or Move-In Ready: Unveiling the True Cost of Owning Your Home in Zimbabwe

The dream of owning a home in Zimbabwe is a cherished one. But with the ever-shifting economic landscape, a crucial question arises: “is it cheaper to build your dream home from the ground up, or is it more cost-effective to purchase an existing property? This article delves into the complexities of both options, equipping you with the knowledge to make an informed decision tailored to your specific needs and budget. Building a house is a considerable investment so it should be done vicariously.

An observation by Business Digest has shown that it is more cost effective to purchase a house in the medium and low-density suburbs than to construct a similar building. In Zimbabwe it costs US$250-US$500 per square metre to build compared to an average US$100 in the region.

A member of the Construction Industry  Federation of Zimbabwe (Cifoz) president Daniel Garwe says it's cheaper to buy a finished house than it is to build one.The reason being most of the building materials are imported and expensive because of the duty. For example a house in Msasa Park is being sold for USD$30 000 to USD $40 000.Yet it costs about USD $250 per square metre which amounts to USD$55 000 and considering the other unforeseen circumstances.So building is definitely more expensive than buying an already finished house.

Case for Building: Customization and Long-Term Gains

Building a house offers the undeniable allure of personalization. You get to design a space that perfectly reflects your lifestyle and preferences. From the number of bedrooms and bathrooms to the layout and choice of finishes, every detail is under your control. This level of customization allows you to prioritise functionality and create a haven that truly feels like your own.

Proponents of building also highlight the potential for long-term gains. Owning the land provides a valuable asset, and a well-constructed home can appreciate in value over time. Additionally, if you opt for sustainable building practices and energy-efficient materials, you can reap the benefits of lower utility bills throughout the years.

Building in Zimbabwe: Unveiling the Costs

However, building a house in Zimbabwe comes with its own set of financial considerations. The cost of construction can vary significantly depending on several factors, including:

• Land Price: Land prices can fluctuate greatly depending on the location, size, and existing infrastructure. Urban areas with established amenities will naturally command a higher price tag than rural plots.
• Building Materials: The cost of building materials is a major factor. While Zimbabwe produces some building materials locally, others may need to be imported, incurring additional costs due to import duties. The quality and type of materials chosen will also significantly impact the overall budget.
• Labour Costs: Skilled labour is essential for a successful build. While labour costs in Zimbabwe might be lower compared to some developed countries, they can still represent a substantial portion of the total project cost.
• Professional Fees: Depending on the complexity of your project, you might need to factor in the fees of architects, engineers, and surveyors. These professionals ensure the structural integrity and compliance with building regulations.

Navigating the Building Process: Time and Potential Delays

Building a house is a time-intensive undertaking. The timeframe can vary depending on the size and complexity of the project, but it typically takes several months to a year or even longer to complete. Unexpected delays due to weather, material shortages, or permitting issues can further extend the timeline. This can be frustrating and may require additional financial planning to cover holding costs such as rent or mortgage payments on your current residence.

The Allure of Buying: Convenience and Potential Value

Buying an existing house offers a clear advantage in terms of convenience. You can move in much quicker, potentially within a few weeks, eliminating the need for temporary housing. Existing properties often come with established landscaping, mature trees, and built-in features such as driveways and fencing, saving you time and money on these aspects.

Finding a good deal on an existing property can also offer immediate value. Market conditions can sometimes present opportunities to purchase a house below replacement cost, especially in areas with a high supply of available properties. Additionally, with an existing house, you can often gauge potential maintenance needs based on inspections, potentially avoiding unforeseen costs down the line.

Challenges of Buying: Renovation Costs and Potential for Upgrades

While buying an existing house offers quicker occupancy, it may not always perfectly suit your needs. Renovations and upgrades to modernise the layout, update finishes, or address structural concerns can add significant costs to your initial purchase price. Factor in the cost of permits, materials, and labour when considering the true cost of buying a property that requires significant modifications.

Financing Options: Considerations for Both Building and Buying

Securing financing is a crucial aspect of both building and buying a house. Interest rates, loan terms, and down payment requirements will vary depending on the financial institution and the type of loan you choose.

Building projects typically require construction loans with higher interest rates than traditional mortgages. When buying an existing property, you can explore options such as mortgages for new purchases or renovations.
Carefully compare interest rates, fees, and repayment terms offered by different lenders to secure the most favourable financing option for your situation.

The Final Verdict: A Tailored Decision

Ultimately, the answer to whether it's cheaper to build or buy a house in Zimbabwe depends on several factors specific to your situation. Consider your budget, timeline, priorities, and long-term goals.
For those on a tight budget who prioritise immediate move-in, a well-maintained existing property might be the most cost-effective option, even if it requires some renovation work down the line.
However, if you value customization and long term gains, and have the time and resources to navigate the building process, then constructing your dream home from scratch could be a rewarding investment.

Beyond Cost: Additional Considerations

Beyond the strictly financial aspects, there are other factors to weigh in on your decision:

• Your Skills and Expertise: Do you have experience managing construction projects? Building a house requires significant oversight and project management skills. If you lack experience, hiring a project manager will add to the overall cost.
• Availability of Skilled Labor: The availability of skilled construction workers can vary depending on your location. Research the local market and factor in potential delays due to labour shortages.
• Personal Time Commitment: Building a house is a time-consuming endeavour. Be prepared to dedicate significant time to manage the project, make decisions, and oversee the construction process.

Building Your Dream, One Step at a Time

Owning a home in Zimbabwe is a significant milestone. By carefully considering the pros and cons of building versus buying, along with your personal circumstances and budget, you can make an informed decision that paves the way for a secure and comfortable future in your dream home.