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Towser
Posts: 1,303 Forumite
Do you have to have nerves of steel or do you just way up the options and when the time is right make a move?
I did want to build my own house but found out you need a third for the plot of land, a third to build the house and a third for contingency/profit.
Our next best option is to sell the plot of land with planning permission. It is currently half of our plot with a semi detatched house on it. Sell both of those and then either go mortgage free or self build.
What is wrong with that. It sounds so simple?
The first thing I can see is we would have to be very disciplined if we went mortgage free to carry on saving for our pensions.
Working for a living doesn't seem to make much money.
I did want to build my own house but found out you need a third for the plot of land, a third to build the house and a third for contingency/profit.
Our next best option is to sell the plot of land with planning permission. It is currently half of our plot with a semi detatched house on it. Sell both of those and then either go mortgage free or self build.
What is wrong with that. It sounds so simple?
The first thing I can see is we would have to be very disciplined if we went mortgage free to carry on saving for our pensions.
Working for a living doesn't seem to make much money.
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Comments
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The one thirds thing is not really true now and depends a lot on where you are.
If you have the plot and lie the area then I would say it's a no brainer to build the new house and sell your old one. you would be moving up to to a new detached house which has to be better than an older semi.
I doubt if this will make you rich, but it should give you a much better life.
If you sell the plot you will probably always regret it.0 -
Yes not rich but in a better position. I am trying to claw my way up the housing ladder from humble beginnings.
I would have to sell both half plots and move on.0 -
Your choice entirely.
Your main gain will have been taking a bit of garden (just valued as a bit of garden) and getting planning permission to build a house.
Whatever you do, sell one, sell both, build on the plot, you have gained somehow simply by getting the planning permission. The decision to stay and build or sell up and move depends on how much you want to self build a house and how much you like the area.
If you are thinking of selling the plot, what area are you in?
Watch out for covenants that may prevent you building. Planning permission is not always all that is needed.0 -
If you haven't paid for the plot then of course you don't then have to find the money to pay for it. You own it.
The only thing you need to pay for is the build. The price of the build can be controlled.Everything that is supposed to be in heaven is already here on earth.
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Working for a living doesn't seem to make much money.
Most people don't work to make a lot of money; they do it to enjoy a decent standard of living and to have some security when they retire.
If you look at places where there is a weak working tradition, where many people wheel & deal, or do anything, rather than learn skills and use them, it's obvious that the whole community suffers.
Property development may once have been more like wheeling and dealing, but nowadays it tends to be something the skilled do, because opportunities to make windfall gains are fewer.
A skilled person can look at some run-down buildings and see in their mind's eye how they can be re-purposed, the order in which the work should be done and which tradespersons they can trust to do it. As the work progresses, they will choose the right fittings and finishes for their intended market, so when the job's complete, selling at the right price is straightforward.
The unskilled person will find building even one house tricky, unless they hand over much of the decision-making to someone with skills and trade connections, who will need to be paid. That might still be a better and more profitable route to take than trying to go it alone.0 -
Doozergirl wrote: »If you haven't paid for the plot then of course you don't then have to find the money to pay for it. You own it.
The only thing you need to pay for is the build. The price of the build can be controlled.
and if you have an exiting house on site to live in and are not in a hurry, you can manage the various trades/build stages and make it even cheaper.0 -
You build cheap and nasty and hope customers don't complain. Unfortunately, it doesn't always work...0
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ReadingTim wrote: »You build cheap and nasty and hope customers don't complain. Unfortunately, it doesn't always work...
bovis homes are a slightly different beast to a self builder. what point are you trying to make?0 -
bovis homes are a slightly different beast to a self builder. what point are you trying to make?
A self builder would be doing it to live in, therefore their concern should primarily be not to go over budget. But the OP is asking about making money on property, therefore I looked towards the commercial housebuilders.
Self build: do a good job
Commercial build: do a good enough job
Some commercial builders: do a not good enough job.0 -
Have you done the pre-planning meeting?
I have been advised it costs around £300 and to take photographs and sketches in.0
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