As Mark Twain famously said: “Buy land, they’re not making it anymore.” Oddly enough, it now seems that this could be the solution to many a would-be home owner’s prayers, with some experts suggesting that it’s an ideal way to beat high house prices.
This is not to oversimplify the issue. Building your own abode takes plenty of mental and physical strength and stamina, not to mention funds. It certainly isn’t cheap, yet it may still prove to be more economical than the alternatives.
This is a view that many governments have gotten on board with in recent years. A number of schemes have been launched to encourage self- and custom-built homes, an attempt at combating the dual problems of too few properties and ever-rising house prices.
But it is monetarily feasible? For those inspired by the idea, it might just be a ‘yes’ …
How to Fund It
From a financial perspective, building your own home can certainly have its benefits, and although it’s a lot of hard work, it really can pay off in the end. Typically worth around 25 per cent more than the cost of land and construction, self-built properties can bring in a healthy profit provided that you go into the endeavor with your eyes open.
Start by finding a suitable mortgage provider. Enterprises that provide specialist packages aimed at people in your position will be your best bet and are likely to offer the most complete and competitive options, as well as recognizing the long-term nature of your investment.
You’ll need to choose your location with care, for whilst city center plots will be extortionately pricey, money can be saved by moving a little way into the countryside, and bigger plots of land are usually available in more rural areas. These should be chosen close to commuting routes where possible, although again, this will drive up costs.
In order to bring down the cost of materials, it is best to buy in bulk, so plan ahead to work out what you will need. If there is no obvious option to do so, talk to suppliers in person and see whether you can negotiate a special deal to accommodate your needs and lower your outlay.
It’s always a good idea to keep construction costs as low as you can without compromising quality, but if you plan ahead, you could help to minimize your long-term outgoings too. Look at ways to design an eco-friendly house, as the more energy you can save, the smaller your future bills will be. Solar panels are one option, whilst high-quality insulation and double glazing could also save you a significant amount on your heating bills for years to come.
Building a home is not for the faint of heart, and many people will prefer to pay more simply because it’s easier to purchase an already-constructed property than it is to imagine, design, and build your own. Yet if you have the tenacity and vision to turn your dreams into reality, it could be a cost-effective alternative to buying something ready-made and on the market at a premium price.