Magical Penny

Every person looking to invest in a piece of land or trying to find somewhere that’s a suitable country break away from city living means running into the same issues time and time again.

Looking for the right home in the right area that offers peace and quiet but is also near enough to essential amenities, not to mention the costs involved in renovating the space, but have you thought about the secret option of building your own home? The benefits, of course, are numerous, but is it a better option than buying a home? Are there more hidden costs? And on a personal level, is it better for you to buy rather than going through the hassle of building a house from scratch?

The Pros

The first thing to discuss when it comes to the upsides of building your own home is the aspect of control over every single contour. In building your own home, you need to have a unique vision of how you want your house to look before you press on with buying the cement and bricks. But the great thing about customization is you have complete control over every single part of the layout. It’s extremely beneficial if you plan on moving to a new area and especially if you are looking to start again on a personal level. There is nothing more beneficial to you than being the first owner of your home. You can find an area of the world that you have always wanted to move to or somewhere with a more rural setting. A place like Colorado, for example, is ripe for agriculture and livestock if you wanted to start a farming operation, you could find more information at Sports Afield about Colorado and why it’s a place of natural beauty. But the fact of the matter is that in choosing a piece of land to build on means that you are starting from the ground up.

The other great advantage of building your own home is that more often than not, brand new homes are built to meet the strict standards of current building codes.

In addition to this, homes are now more energy efficient if you build from scratch by adding up-to-date tech and energy efficient changes to your home, this means a lot of additional costs. There is also a limited warranty for home builders so if there are any issues on the structural side of things, it could save you a lot of money. It’s a lot of peace of mind to know that you won’t have to deal with any major repairs or maintenance issues for at least the first 10 years of your home’s life. And while there are many personal pros to building your own home there are, inevitably, downsides.

The Cons

The first thing to bear in mind is to understand the overall cost of building your own home.

It may appear that it will save you money in the long term, which it undoubtedly will, when you think about the environmental impacts and reducing your bills, as well as being able to live in a cost-effective home that doesn’t let out heat and waste energy. But the costs of building a new home mean a lot more money up front, not just for the materials, but also the cost of the land, especially if you are looking to build in an area of high demand. Couple this with costs you may not immediately think about such as window coverings, driveways, fences, and even furniture, especially if you are building a bigger house than what you are currently living in. These will all add up. According to The Lenders Network, the current cost of building a house in America comes to $289,145, while the median home value is currently $258,500, considerably less! Throw into the mix the time it takes to build a new home, which on average is 7 months, meaning that as well as the cost of building your new home, you may have additional costs on top such as renting a property to tide you over.

Or if you are in your current home you won’t see the cash based on the sale for quite some time meaning that the cost of building your new home is going to run into thousands of more dollars than the straight up cost of $289,145. Buying your own home outright means negotiating on price as well as less of an impact on your stress levels, however you may not be able to get everything that you want. It’s also important to bear in mind that the experience of a real estate agent comes in handy when understanding how the builders operate based on the market meaning that they may be able to negotiate a lower price when buying your own home rather than building. The materials will more than likely increase in price rather than decrease, and as the building codes become more stringent, this may mean a more sophisticated wealth of building materials.

If you don’t see money as an object, building your own home can come with unlimited benefits, but it can be a surprise when all the hidden costs reveal themselves to you.

Buying your own home can come with personal downsides such as buyer’s remorse as well as neighbor’s remorse, especially if you are moving to a neighborhood where someone is inclined to play loud music in the middle of the night! Buying your own home comes with a lot less hassle in the long run, but when you look to build a home, there isn’t much leeway when it comes to purchasing price or closing costs.

The one thing to take away from this is to make sure you know exactly what you’re getting into, and whether you plan on building or buying, it’s best to utilize the knowledge of a real estate agent. Ultimately they will have better knowledge of the state of the market than you and can advise you accordingly on how to progress. Building your own home can be a great adventure, however, it can also be a major hassle personally and financially, so make sure you weigh up the pros and cons.

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Getting on the property ladder can be a goal for many.

Having your money being spent on your own mortgage, rather than someone else’s, is what it is all about. You are investing in something that is yours, and you can sell it at any point should you need to. But there are other costs that come with owning a home that you won’t necessarily have if you are renting, depending on what your contract is. So if you are looking to get on the property ladder soon, then there are some things that you need to take into account when making your calculations. Do you know about all of these extra costs?

Council Tax

Unfortunately, not all council tax is created equal. So even if you have been paying council tax in your rented property, will the council tax band of your new home be more expensive than it has been previously? If it is a larger home and definitely has more bedrooms than before, it will be in a higher band. So as part of your mortgage calculations, you need to include the council tax with it. Can you make the extra repayments each month?

Energy Bills

If you are moving into a new build property, then the chances are that your energy bills will be quite low. Compared to an older home, a new home will be well-insulated, warm, and much more energy efficient. So your bills could be less than before. Again, this is something that you can check with the estate agent as they have energy rating details. However, if you are going to be moving to an older and larger home, then your energy bills could rise. It isn’t the end of the world, as long as you’re on the best tariff. So check an energy provider comparison site like http://selectra.co.uk/, to see what tariff will work out best for you. If you can get locked into a reduced rate for a couple of years, then that can often be the best way to go.

Maintenance Fees

Generally, this will only apply to flats, as someone has to take care of the communal areas, staircases, and lifts. So often there is a yearly maintenance fee for the property. No doubt you will get told what it is when you are looking to move. But make sure that you are checking your finances and working to a budget. There is no need to get into debt for something like that.

Parking Permits

In places like London, you need to pay for a parking permit to be able to park on the street that you live in. Quite crazy, but you can see why they do it. Would this be the case on your new home? You can always check on https://gov.uk/parking-permit if you need to. Weigh up the options of paying for it versus using other streets closeby. It can save you money to do the latter but may end up being more hassle.

Have you got any other considerations that you would include in the list?

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Owning and living in your very own country retreat is the dream of many people on the property ladder. But actually getting your finances sufficiently organised to get there can be a challenge. What you want is to have your own plot of land that can freely explore and roam, but that, of course, comes at a price.

The following are some financial tips designed to help you get the money together you need for your escape to the country. Here’s what to do.

Look For Cheaper Locations

There’s a premium attached to living in some parts of the countryside, especially areas inside national parks. However, in places just outside, often with equally stunning surroundings, you can get a lot more value for money. Look for properties with substantial land in the border areas to national parks and nature reserves to get the rural setting you want without having to completely empty your bank account. Click to view more information.

Use Saving Tools

The great thing about digital technology is that it gives you unprecedented control over your finances. With a click of a button, you can categorise all your spending and figure out where your money is going,

Download an app like Mint (if you’re in the US) and take a look at your standing orders and subscriptions. Is there anything you’re paying for unnecessarily that you don’t need that could get in the way of your plans?

Also, start investigating the return on savings accounts. Though it might seem pointless to put your money into an account at a rate of 0.25 percent, rates do vary substantially. It’s far easier to get the money for a deposit when you’re earning 1 or 2 percent interest a year on your savings.

Look Into Shared Ownership

Sometimes buying outright simply isn’t an option. But thanks to some clever thinking by those in the property industry, you no longer have to if you want to live on your own property. Instead, you could opt for shared ownership. Under these arrangements, you continue to pay a mortgage, but only up to a set proportion of the home’s total value – usually 50 percent. Then you pay rent to cover the remaining balance. Although it might not be ideal for people who want to own their own castle, it’s a great solution for those who just want a country lifestyle.

Wait For The Next Recession

Do you remember the last downturn? In some parts of the country, house prices fell by more than 20 percent. The same will happen in the next. According to the Case-Shiller index, the current ratio of house prices to median income is at historic highs, just like in was in the summer of 2007. This is evidence that house prices will almost certainly fall if there is another downturn in the next few years. Moreover, home prices usually go down anyway as more people foreclose and a greater number of properties suddenly find their way onto the market. As such, if you’re able to wait, you might benefit substantially.

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