4 Things to Consider Before Building Your Own Home

Monday, 16 August 2021

4 Things to Consider Before Building Your Own Home

4 things to consider before building your own home

If youre a contractor yourself, the chances are that youve had thoughts about building your home and this is why we are here with an awesome list of things you must consider before taking this important step - Building your own home!

Youre in a perfect position to do it.

People who are able to take on a lot of the work associated with building a home and invest their own sweat equityinto the project can save a lot of time and money, which makes building a home an attractive proposition. You might even save money when compared to buying a ready-built house if you plan carefully.

Design with a goal in mind

Its important that you approach your custom house build with a fixed goal in mind. When designing your house, its quite easy to get swept up in what you think looks great or what would work for you right now, but that can lead to problems. Its important to always keep your end goal in mind.

If youre building a house with plans of living in it, think about your current lifestyle - for example, things like if you often like to have overnight guests, or if having space to socialize outside is important to you, but also think about the future. Things like whether youll want to create a home thats suitable for children, for example.

If youre building a house with plans of selling it, then think about what the people buying your home are likely to want, rather than what you would want. Enlisting the help of a realtor is a good idea for this.

Choose your land wisely

This ties into thinking about the purpose of your build.

 If you are building a future family home, then you might want to consider building in an area where there are good schools and good access to central city locations. Its worth bearing in mind that getting building permits in an existing residential area is often easier.

The easiest way to maximize your profit is to build in an up-and-coming neighborhood, where you can secure land at a low cost and make a profit when the area becomes desirable.

Some signs that an area might be up and coming are:

  • Close proximity to central city locations and transport links like highways and train stations.
  • An increase in the number of things like co-working spaces and restaurants.
  • Properties staying on the market for a shorter amount of time.

Financing your project

Unless you have a lot of capital behind you, the most common way to finance a home-build project is through a loan.

Looking at loans from new construction lenders means that you will have faster access to the capital you need, which can be great if you need to get moving quickly. These types of loans are typically designed to be taken over a shorter time period than a traditional mortgage, so they can be a good option if you are planning to sell your property once its built.

Construction mortgages last for the time of the build itself and then convert into a traditional mortgage once you have finished the build.

Be prepared for timelines to move

Its important to have a project timeline in order to help to keep yourself on track and on budget. However, its important that you build a timeline that allows for some degree of flexibility.

Things like weather conditions, availability of contractors, and unforeseen building hiccups can and will add to your timeline, and its important that you account for this if you dont want it to derail the whole project.

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