Post # 1
We own a flat in town which we bought 3.5 years ago and are looking to get onto the next rung of the ladder. We have a pretty good deposit, have been overpaying on our mortgage and have hopefully put some value on our property since it was a ‘doer-upper’ so we’ve got a fairly healthy lump of money (around $100k in US money). However where we live the housing market it pricey and we’ve got this other issue of stamp duty/land tax which jumps from 1% to 3% above £250k. Houses under £250k are just not so nice (maybe I have expensive taste!) and we’re looking for something we can stay in for a few years-so need to take into account kids, family, more dogs… we need space which it seems only the houses over £250k can offer… ie mega tax and I really REALLY resent having to pay basically all of the captial we’ve spent 3 years paying on the mortgage as tax to the government.
So, we’ve been looking into a self build option. Specifically a barn conversion. I’ve found one with planning permission which would allow us to get a self build mortgage on, but I am literally a novice when it comes to anything to do with building a house! I love LOVE the idea of being able to build our own home, our own specifications, and the one we’ve got our eye on has space enough that we could stay for a good few years-something that we would otherwise only be able to afford with a HUGE mortgage which we really don’t want to get into.
Any bees with any experience of this? US or UK, I’m looking specifically for how you financed it, how long it took, where did you stay meantime (anyone with caravan/mobile home experiences?!)
I feel like this might be the only time in our lives we would be able to do this (no kids, just the 1 dog) and know we need to do a LOT of reseach before committing but it is literally my dream and I don’t want to get carried away!! haha
Post # 3
I looked into building years ago – we had to purchase land and have it paid off before we could build on it. That’s land not in a housing community though. Not sure about the UK. Just reasearch and talk to professionals and/or realtors and see if they can point you to the right direction.
Post # 4
I sold a piece of land 2 years ago and where i live you can’t take out a mortgage on land. It has to be purchased outright. The people that bought it built a beautiful house. Its different if you’re in a development though as its a package deal with the house. Once again not sure of UK rules. When mom and dad built there house we lived with my aunt for a few months inbetween when the old house closed and the new house was finished.
Post # 5
@LarLa: thanks ladies. Yeah I think we have a lot of research to do… On the upside here in the UK if you find a plot that has planning permission in place you can get a mortgage on that which at least frees up some of our capital for the build itself, but how to go about it all apart from the mortgage part.. No clue!! Unfortunately staying with family isn’t an option for us as family are over 500 miles away, so we’ve got the opitions of rental or trying to live on site, which although sounds fun (ish) to begin with, like a long caravan holiday, I have a feeling it would be a challange!
Post # 6
Build your house…not buy. when u build…u own the house..no mortgage. when u buy..u don’t truly own your house until it’s paid off. we built our own house…i mean WE built it. not a contractor. it took us two yrs. we didn’t take out a loan either. each month we set aside $1000-$2000 of my husband paycheck. it was super hard..we scrapped by each month. now we have been living in our house since the end of August. we don’t pay a mortgage..only our land payment which is $200. In two yrs we will have paid off the land…sold this house and build another much larger house on a couple of acres.
Post # 7
We built one last year. I can’t comment on how the money works out, since we’re in Canada. DH wanted to trying building and flipping, so ours was on loaned money (and has thankfully just sold).
We went to an architect with a sketch of what we wanted and had him draw up plans for us. Most will do this very cheaply for a private home. We hired in some things, like framers, drywallers, bricklayers and other heavyt jobs and we did a lot of other things ourselves (roofing, laying hardwood, painting, etc). From the time we put a shovel in the ground to the time it was finished was about 7 months. We might have been able to do it a little quicker, but we were working too. We stayed at his parents place two doors down while we built, so we were really close.
We were able to build a very nice house for not very much money, so in that respect it’s worth it. On the other hand, I told DH that I will never do it again unless it’s a house for us. I feel like we gave up a lot of our time with each other that summer, and it was hard on us. I wouldn’t mind doing it once for our forever house, but I don’t want to do it every summer to make a quick dollar.
Good luck with your build. It’s totally doable, and it sounds like you’re in a good position to do it.