Managing a Self-Build

Sanddunes_&_Saltyair

Hi does anyone have any advice about managing the finances of a self-build please?


I was planning to set up a new bank account from which all bills associated with the build will be paid to make managing money a little easier. I am particularly hoping that it'll make doing the VAT refund at the end easier! Has anyone else done something similar? What would you recommend?


I have looked at mortgages so know the typical rates and what is available to us in NI. Would anyone recommend one mortgage company over another?


Does anyone have a useful finances budget tracker that they used to keep track of costs?


Thanks

bigw81

Hi - you might find some useful info through this link:
http://www.halifax-intermediaries.co.uk/literature/mortgages/self_build/default.aspx

snowcat75

The vat refund is fairly easy to manage irrespective of where it comes from, as long as you keep a paper trail, if you use contractors accounts (sometimes due to there discounts) to purchase any materials its important to keep a keep the statement from which you settled the account from as its proof that the materials were used on your job.

Personally I just run the job on 2 CC with decent limits, I think its prudent to use CCs when ordering materials on the internet as it offers you the section 75 protection if the firm goes under or the goods don't arrive.

Make sure any contractors you use are aware of the VAT position if there non VAT registered you source and buy the materials if they are inform them that they should 0 rate or 5% in my case and you will provide them with a cert there is a template within the HMRC guidebook. MOST contractors are unaware of this so make sure you know your VAT position 100%.

My borrowing position is slightly different I mortgaged against my existing property which I intend to keep at the end of the build and let out and in addition a borrowed twice on personal loans, which due to a decent credit history came in at under 3%, this worked well as I will have quite a decent additional income to pay off the debt with the rent from my own house once finished.

I think its worth however any self builder considering a short term loan as the VAT is not reclaimable until the build is finished but you can budget for this money can be used on the build.

However you finance it there is no wrong or Right, but being in the position of having the ability to be flexible (especially in my case of a barn conversion which was impossibly difficult to budget) and maybe needing to additionally borrow is always good, and I also think that its better to borrow more months in advance if you think you need it than run out of cash and then be panicked to borrow, lenders always seam much more inclined to do so when you still have a healthy bank balance.

You don't need any fancy system to budget pen and paper does me, tot up the money in your bank accounts, work out your commitments for the next week, and month, then work out what stage your at and how much more you are predicting it to cost. I suspect a spreadsheet would make life easier but pen and paper works fine..... PREUDANCE and being realistic is key.

Good luck.....your have more grey hairs than when you started but it will be worth it in the end.