To get on the property ladder, most people will save up money for a down payment and then apply to a financial institution for a mortgage. They will then set about looking for the perfect home to fit their lifestyle and budget. But not everyone gets on to the property ladder in this way. In fact, there are many who choose to build their own home instead. But is this a good idea?
Building your home has many advantages. First, you get to design your dream home with everything just the way you want it. You don’t have to live in a house that includes décor and fittings chosen by another person. You also have the option of making your home as energy efficient as possible, saving you money on your monthly expenses. Sounds great, right? Well, it can be, but there are some important things to consider when building your home. Below are a few examples:
Building Can Work Out More Expensive Than Buying
A lot of people are of the opinion that building your home will automatically be cheaper and while it certainly can be, it does not always end up this way. For example, if you already have access to a plot of land, then building your own home can be a great idea.
When building a home, you are likely to run into delays during the project (most people do), and delays can be costly. Furthermore, it is often the case that unexpected costs arise during the cost of the build, which can push the end price up significantly.
It Can Be Difficult to Secure a Finance
Unless you already have the cash to build a house, you might struggle to get the finance. You will need to get a construction loan, which can be more difficult to secure than a regular mortgage. This is because lenders prefer to lend when they have a property as security. With a construction loan, they are providing money for a structure that has not even been built yet. This obviously has more risk. If you do secure a construction loan, you are likely to pay a higher interest rate than you would for a standard mortgage.
You Need the Approval to Build
Once you have drawn up plans for your home (or hired an architect to do this), you will need to send these plans to your city or county’s local planning department to be approved. Your plans will need to meet the relevant zoning regulations and building codes before they can be approved.
You Can Do Some But Not All Work Yourself
Some self-builders do not get involved in any of the construction of their new home. They raise the finance and then hire a construction company to take care of the work. Others will project manage the build so that they are on-site and are involved in the ordering of materials, etc. Then there are those who want to take more of an active role and get their hands dirty.
If you are one of those people who wants to be a part of the construction of your new home, it is important to know your limits. For example, you might be able to do some jobs, such as tiling or framing, but other jobs could be much more complex. For example, if you are having a copper drainage gutter system installed, it is best left to experts such as Global Gutter Systems. There is no point in taking on jobs that you have no knowledge or experience. After all, knowing your limits will ensure a better finish.