dcsimg The Get Rich Slowly Forums • View topic - Building my own house, but cannot get finance. Options?

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 Post subject: Building my own house, but cannot get finance. Options?
PostPosted: Thu Jan 22, 2015 9:03 am 

Joined: Thu Jan 22, 2015 8:49 am
Posts: 1
Ever since I was in my 20s I have dreamed of building my own uber contemporary eco style house. I live in the UK and most housing over here is mass development constructed by large scale national building companies.

The reason for wanting to build my own property is that I am good at all things building related. I have refurbished 2 houses in the past 10 years so I know I can do most of the trades. Carpentry / plumbing / tiling ...

I used to be a furniture maker and still make contemporary pieces.

The issue I have though are 3 fold

1. Plots coming onto the market get snapped up quickly by builders or people with cash in the bank who don't require a mortgage.

2. Financing in the UK for self building is expensive, and by the time you have sorted out financing the purchase of the land, the land has been sold.

3. UK lenders want you to stump up a large deposit for the land. This approach usually means you have to sell your house to release the small amount of equity you have for the deposit. The trouble with this approach is that selling your house takes time, and selling your house without a plot lined up is a real gamble. We did this once, and we didn't see a plot for 12 months so ended up buying another property.

It's so frustrating, and at 43 I feel like I will never get the break I so desire. I am so confident that if I can be given the opportunity to build one house the result will be one that starts a chain reaction and I will then get the opportunity to build more. I watch Grand Design programmes where people have so much cash to hand and they claim they are self building, but never lift a finger to do any of the project.

I am currently experimenting with ultra thin concrete used in large scale buildings in the city, and the industrial look coupled with fine timber veneers looks amazing.

There must be someone out there who would be prepared to help fund my venture. I am not looking for a handout, and will pay nominal interest on the borrowed figure of 200k

Any ideas?

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 Post subject: Re: Building my own house, but cannot get finance. Options?
PostPosted: Tue Jan 27, 2015 2:07 pm 

Joined: Wed Mar 26, 2008 1:35 pm
Posts: 478
Location: USA
The only examples I know are 1:my husband's grandfather, who bought the land. A number of years later he and 2 other of his friends built a cabin using traditional building techniques. Cost was really time/labor of love; even the materials (lumber, stones) were harvested and processed on-site.

2: a friend of ours, whose dream was to have an eco-friendly house. They had purchased a regular house, rehabbed and sold it at a profit. They then used the proceeds to purchase the land. They got some kind of loan to build the house because they had jobs. Originally they were going to build themselves, an unusual eco house, but were having trouble getting approvals. So they ended up collaborating with an architect and hiring out the labor for passive solar house with earth berm in back (back walls made of concrete panels). They did most of the interior finishing. Really beautiful house/realization.

So in these instances, they purchased the land first (usually from savings from regular job, or selling original house) and then waited on building the house until they had the time, could afford it, etc. Do you know anyone with land that you can build on? Or someone who wants you to build their house? Then they would be the one providing the land/money.
I should add for the 2nd case, since it was a few years from selling the house to building the new house, they lived in trailers on the property (no running water, etc). So that is another suggestion, to save on housing costs until actual house built.

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