Is building new always better than buying?

[Austin Wolff]

Building a new SFH (and then holding it as a rental) appears to be a better option than buying an existing SFH. If you build (via managing a general contractor), you should (ideally) know more about how the property was built than if you bought an existing home--you know what's behind the walls, and ideally you might avoid anything wrong with buying an existing home with issues you and your inspector didn't catch.

I understand there's risk to building--it just seems right now that the risk is lower than buying an existing house--a house where you simply cannot know every detail without tearing it down to the studs and doing a complete remodel. If you bought an existing home and it had a massive problem your inspector didn't catch, your deal could go under.

Am I wrong to think about it this way?

[Matthew Paul]

In my area , you would have a minimum of 1 year from the time you bought the land until you could stick a shovel in the ground . Engineering , permits , stormwater management system , clearing , reforestation fee , sediment control , and landscape bond , all this would run you around $175K . Plus the cost of the land .  Then the cost of the house .   

Much cheaper to buy existing