Am I to become a renter

IveSeenTheLight

Percy1983 wrote: »

If you are paying less off somebody elses mortgage than stangers are paying off your mortgage(s) then you are still quids in.

Very true, however I have my family to consider and any additional cost can be justified for my families well being.

Dribley

HOMEOWNING_FTW wrote: »

No on second thoughts he's probably got more self-respect than to impose himself onto others.

Pity you haven't :rotfl:

IveSeenTheLight

HOMEOWNING_FTW wrote: »

Guess he could always run off home to mummy to be bailed out and supported. No on second thoughts he's probably got more self-respect than to impose himself onto others.

Now now, no need for that.
Moving in with the in-laws is an option and current last option plan.
as I said, there are limited properties coming to the market for rent and when they do, they seem to be snapped up (well any half decent ones are).

I'm expecting to need a home for 9-10 months, however at my stage of life, having my own home is probably worth the additional cost that could be saved by staying with family.

Even if I did stay with them, my concious would be that it would probably cost me just as much without having the benefits of having our own place.

chewmylegoff

IveSeenTheLight wrote: »

All in, it will probably cost me about £330k to build and finish with the valuation being circa £450k

if that is right, then why isn't anyone with any money buying a plot of land and paying the company to plonk one of these on it, so they can pocket the profit of £120k (even after the builder has made their profit on the construction of the house).

surely it would be a no brainer, sit back and watch the money roll in? why wouldn't the building company themselves just buy the land and make the extra £120k profit?

the_flying_pig

If you're anything like me, "[m]oving in with the in-laws" would cause you to rack up about a grand's worth of emotional costs per day.

IveSeenTheLight

chewmylegoff wrote: »

if that is right, then why isn't anyone with any money buying a plot of land and paying the company to plonk one of these on it, so they can pocket the profit of £120k (even after the builder has made their profit on the construction of the house).

surely it would be a no brainer, sit back and watch the money roll in? why wouldn't the building company themselves just buy the land and make the extra £120k profit?

Planning laws for one. Land for property is not readilly available. I wish it were.
The plot I have the opportunity of is not on the market and may be avilable quickly and relatively cheaply.

The other answer to your point is that this is what builders thrive on. Building on land ans selling for a profit.

The market has changed and this builder is willing to agree a build price on land they don't own. It's part of a strategy I guess to keep them busy.

They do have selected plots themselves which they have bought and put to the market, however this builder seems to specialise in the very north east where potential buyers are fewer.

Part of the higher valuation is because the plot is far nearer Aberdeen than other similar designs i.e. £345k up in Fraserburough (hours drive from Aberdeen)

Thrugelmir

chewmylegoff wrote: »

surely it would be a no brainer, sit back and watch the money roll in? why wouldn't the building company themselves just buy the land and make the extra £120k profit?

If the land cost of £100k is deducted. Then the total cost is nearer £430k. Any premium is notional.

The builder is taking no risk as makes profit entirely out of construction. Nor incurs finance charges funding ownership of the plot or construction costs, until a sale is achieved.

shortchanged_2

chewmylegoff wrote: »

if that is right, then why isn't anyone with any money buying a plot of land and paying the company to plonk one of these on it, so they can pocket the profit of £120k (even after the builder has made their profit on the construction of the house).

surely it would be a no brainer, sit back and watch the money roll in? why wouldn't the building company themselves just buy the land and make the extra £120k profit?

I have to agree with you on this one chewie. I'm not convinced there is the big money making on self builds that there was from the previous decade.

PasturesNew

IveSeenTheLight wrote: »

It appears I may be about to become a renter again :eek:

I wish I was.... I'm lower scum... I'm lodger class.

IveSeenTheLight

Thrugelmir wrote: »

If the land cost of £100k is deducted. Then the total cost is nearer £430k. Any premium is notional.

The land purchase is seperate to the builders costs.

The total cost is circa £330k, however as you say, the builder is providing no outlay into the plot or construction costs or have to find a buyer.

As a business, this may realise less profits but ensures there should be no cashflow issues.