If you are among those enthusiasts who want to plan a grand design or wish for something extraordinary to call their dwelling, you must be thinking of self-building your home instead of buying an already constructed home. Around one-third of new home buyers are interested in designing and building their own dream home.
Before we discuss the pros and cons of building your own home, let’s understand the difference between self build, custom-build, and modular homes in detail.
Self-build Homes
The terms ‘self-build homes’ and ‘custom-build homes’ are often used interchangeably. But technically, there are a few differences that need to be highlighted.
Self-build housing projects usually demand a more proactive approach. You will be buying the plot, preparing the plot for construction, and organizing the design and construction of your home all by yourself. This implies physically taking on some of the building work and getting your hands dirty. You will be managing the contractors to take care of each and every aspect of building your home.
Custom-build Homes
When you work with a developer to build your dream home, this is called a ‘custom-build home’ project. You will buy a plot in a locality of your choice and will partner with a developer to develop the right design. It will then be your developer’s responsibility to manage the entire building project. The main benefit you can enjoy in a custom-build home project is that you can have a bespoke design of your choice without having the responsibility to acquire planning permissions or manage the project yourself.
Modular Homes And Kit Homes
Another option you come across when planning for building a home is a ‘modular homes’ or ‘kit homes’. It has become quite a popular solution to solve the housing shortage. A factory- built home is subject to greater quality control and can be built at great speed.
When you decide to build your home there are some fundamental things to take into account which might assist you in deciding whether custom-build and self-build are right for you.
The Pros Of Self-Build Homes
● A Cheaper Option
Self-building your own home is relatively cheaper than buying a home from a developer. A developer will be making a profit, making it more costly for the buyer.
● 20% More Value
Your completed home can be worth 20% more than its collective build and land cost if you budget correctly.
● Customized Design
Building your home yourself will give you the liberty to choose your own layout, fittings, and fixtures.
● Energy Efficiency
When you are a self-building home you can focus more on the features that will result in an energy-efficient design. It will significantly reduce the running cost of your home.
● VAT Refund
As per the rules, if you self-build a home you are allowed to reclaim VAT on your material costs and labor.
● Stamp Duty Relief
You will get relief in stamp duty when you self-build a home. You will be charged only on the cost of the land and not the finished home.
● Community Infrastructure Levy Exemption
Self-builders are generally exempted from the Community Infrastructure Levy. Not all councils apply this charge, but you must check.
The Cons Self-Build Homes
● Hard-To-Find Plot
Finding the right plot is not an easy task. Although the government has many schemes that help in finding a good plot and also relaxed a couple of planning restrictions, it is still a hard job.
● Rental Cost
While you are self-building a home, you need a home to live in. This means you have to bear rental costs along with building costs. The longer the home construction takes, the higher your rental costs will be.
● Stressful And Time Consuming
Self-building a home is not a one-day job. And it isn’t easy at all. It requires a lot of effort and time to manage the construction project. It is stressful to work with several contractors at the same time to get things done properly.
● Limited Cash Flow
If you don’t have significant savings and you are totally relying on mortgage funds, you might face cash flow problems. Since the mortgage funds are usually released in stages, you will find the pace of your building project following this.
There is no right and wrong when you are choosing between a self-build home or a custom- build home. Like a self build home, a custom-built home also has its strengths and weaknesses. You just need to weigh your limitations and opportunities well to make a decision.
