Dear HeatherI see more lots of land coming on to the market for sale. We are thinking of buying property, what are the advantages and disadvantages of buying a lot versus an older home that needs renovating?To Build or Not to BuildDear to Build or Not to Build,You are correct. We are seeing some lots of land coming on to the market and at much better prices, of course, than we would have seen eight years ago. At the peak of the market, land was selling for as much as $3 million an acre for residential one (high-density zoning).These days, land is selling for about $1 million an acre, give or take for such things as amenities, proximity to Hamilton, views, location and waterfront.Be aware that if you are looking at borrowing from the bank to buy land, they will likely require at least 50 per cent of the purchase price as a down payment. Financing packages differ, of course, from bank to bank and from person to person depending on age, assets and income.The clear advantage of building your own home is that you can custom design it, however, be aware that with architects, planning, costing and building, special-order finishes and installations, etc, the process can take up to two or three years and you will need somewhere to live in the meantime. Building costs are averaging about $350 per square foot, however, that can vary from contractor to contractor.The number one thing I would advise if buying a lot is location, location, location. You have very little else to consider other than if it will accommodate your dream home, so make sure the location is absolutely what you want and know how much it will cost to clear and level it.• Renovating: there are always a fair amount of “fixer uppers” on the market and they can be a very good place to get your foot on the first step of the property ladder. They can often be bought at good prices as not everyone wants to fix up. A few words of warning though:1. Be very sure about what you are taking on. Have a structural survey done on the property with a quantity survey of the estimated cost of renovations. Yes, you know you need to do work, but how much work, and how much will it cost? Sometimes it is more expensive to renovate than it is to build from scratch.2. Sometimes the thought is that you can remain in the property while renovating. Be realistic. How long can you live without a proper kitchen or bathroom? And at what cost to your relationship and family? Think about the dust everywhere. Sometimes it is better to get it all over and done with prior to moving in. 3. Be very realistic as to how much you are able to do yourself. You might be the world's best DIY person but if you are trying to work on your property while holding down a full-time job, the work is going to go very, very slowly.Remember the saying, it always takes longer and costs more than you think it's going to.• Don't rule out a condominium: if you are starting out, there are some units in nice complexes available across the island that offer excellent entry-level purchase prices. Some are in need of updating, some not. On the plus side, updates are usually fairly straightforward and often can be as simple as painting the walls and changing the floors. You can spend your spare time enjoying your family, furthering your career and still have enough spare cash to pay off a bit more on the mortgage or travel once in a while.Happy home hunting!• Heather Chilvers is among Coldwell Banker Bermuda Realty's leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated in confidence. Read this article on Facebook: Ask Heather Real Estate