With house prices on the rise and available housing stock falling, more and more people are looking into other options.
While it can be tempting to , those looking for a forever home may like the sound of building their own home.
It can be the satisfying realization of a dearly held dream. Or it could turn in to a nightmarish money pit!
To ensure it’s the first, we’ve put together a few pointers to help you.
Here are 5 things you need to know when you build your own home.
1. Finalize the Budget First
Many a home builder has run into trouble by not taking proper care of the budget.
Your budget will likely be something that someone else dictates for you – often a . Your job is to make that budget work like your life depends on it.
Some tips include:
- Make sure your budget includes everything, including the lot
- Double check all required permits and fees before starting
- Be modest – only take financing you can afford, and tailor your tastes to match
Which brings us to our next point…
2. Set a Generous Contingency
The unexpected always happens with a home build – the exact cost to build a house is something very difficult to estimate at the outset.
Whether its something you find on the site that you have to overcome, or a utility hook-up or contractor’s bill that’s more than expected.
The rule is to set aside around 30% of your budget as contingency funds. Sound like a lot? You’ll probably end up using every penny.
3. Choose the Type of House You Want
Once you understand your budget, you can begin to look at the house you can achieve.
Be careful not to try this the other way round. If you set your heart on a particular type of house before knowing whether you can afford it, you could quickly end up in financial difficulties.
4. Choose the Right Contractor
Once you’ve got your plot and have chosen your house design, you need to find a contractor with the expertise to bring it all together.
A starting point could be your local home builders’ association. They can direct you to home builders who can work with your plans and your budget.
5. Consider a Managed Build Service
Unless you have experience building houses for other people, building your own house can be extremely daunting.
There are decisions to make about the plot, materials, contractors, not to mention a budget to keep in order. That’s why if you’re a novice, it’s worth considering a service that manages the build for you.
See options available to you locally – they may include fully managed services, right down to limited support. Either way, they can give you a helping hand and help you to avoid some of the pitfalls common to self builds.
In Summary: How to Build Your Own Home Successfully
The way to build your own home successfully is to take care of the budget.
If the budget is solid, everything else can be overcome. If this gets out of control, you could end up with a mountain of debt, and potentially no house to show for it.
Check out our blog on to get you started on your self-build journey!
