Now IS the time to Build your Own Home!

publication date: Nov 20, 2009
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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Come on, 5 million of you watch Grand Designs when it’s on, yet only 15,000 people a year make the effort to build. Reasons given for not building are mainly ‘I can’t find a plot’ or ‘I can’t afford it’ or ‘I don’t want to build it myself’. Well the credit crunch has taken all of these reasons to NOT build your own home away!

I Can’t Find a Plot!
Unlike the property market which the Royal Institute of Chartered Surveyors (RICS), has just reported a shortage in the supply of homes to buy, according to self build specialist BuildStore, the number of plots of land for sale is on the rise!

From the start of 2009, almost six thousand new plots have been added to the land finding service Plotsearch database. Since the database began nearly 10 years ago, Plotsearch has just recorded over 9,000 plots being available – that’s a 45% increase since 2007 and the highest number of plots ever recorded.

Latest government news suggests property prices have risen by 6% (versus a poor year last year though) while the cost of land has FALLEN by 7%.

So what would you prefer to do? Moan about the cost of a new build and how much developers make in a year or two years time, or buy land while it’s available and build your own.  Most self build projects are worth 30% MORE than it costs to buy the land and build.

So what are you waiting for! Email enquiries@designsonproperty.co.uk or call us on 0845 838 1763 to find out how we can help you find a plot of land.

I Can’t Afford it

If you can afford a home that’s already built with a 25% deposit, then I’m sure you can afford some land and the build costs with only a 5-10% deposit? Lenders will offer you money UPFRONT to buy land and pay builders as they know that when you’ve finished, the equity in the property is likely to be at least 25% as most self builds are worth 30% more than they cost to build.

And, don’t forget you’ll pay less stamp duty, particularly if you buy before Xmas. Over 63% of plots advertised by BuildStore (owner of Plotsearch) are currently under £175,000, but when the stamp duty is re-introduced at £125,000 on 1st January, then the number of plots that don’t incur stamp duty will fall to 47%.

Who actually Builds a Home Themselves?
Self build is really a daft phrase as hardly anyone builds a property with their own bare hands. Don’t forget the properties you see on ‘Grand Designs’ are just that and most self built properties are ordinary 3-4 bed homes that you’d see a developer selling. It’s just that people employ an architect and either work with a builder that does everything or contractors that carry out all the work.

Some people buy into a ‘kit’ which helps if you are on a budget as you can fix 40% of your costs from the start of the build and build the property a lot faster so you don’t have to pay out quite as much on mortgage fees.

So, think you can’t self build, come on, why not at least start looking? You might be spending next Xmas in your dream home that YOU designed. Let’s face it that’s a much nicer thought than watching other people on telly building and living in their dream home – isn’t it?


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