Building Your Own Home - 4 Things You Need To Consider
If you wish to build your own home to save on costs, you’ll need serious and extensive research. This is the only way to ensure that you’re saving and that you’re getting your money’s worth. While buying an already built home makes much more sense, building your home provides you with room to grow and plan.
Is building a house more expensive than buying one, considering that the housing market is priced higher than ever before? The short answer is it depends, but building a home is a good investment. Before you look up land prices and contact agents, there are things you need to know. Research is vital, after all, so here are four things you should take into account:
1 - Understand that everything depends on your budget
In today’s real estate market, it’s hard to found a home that needs minimal fixing for under $150,000. Although searching thoroughly may lead you to good deals, coming across such houses will require tooth and nail. With that in mind, it’s incredibly more logical to build a home on your own (with all the construction help, of course), as it’s highly possible with a budget like $100,000 or less. How? Careful and meticulous planning is key!
2 - You need to think about land
Before building your home, you need to have a proper location to place it. This means buying land, and the costs depend entirely on location and size. Buying a big land will cost more, especially if you’re looking to buy one in the city. Rural parts of the country will generally be cheaper, and you’ll be able to purchase a decent amount of land with little costs. In Maine, for instance, a few acres generally cost between $20,000 to $50,000.
3 - Personal loans will be involved
Having funds for construction is crucial, and the simplest way to borrow money is through personal loan applications. As with any loan, the better credit standing you have, the better rates you’ll receive. Before taking out a personal loan, however, make sure that you’ll be able to pay it off on time. You may have the means to build your house now, but any form of debt can quickly become a sinkhole—you may end up losing your home in the long run.
4 - Construction loans may also be necessary
Unlike personal loans, this type is specifically for buying land and building homes. They’re more similar to credit in nature, as opposed to how mortgages work. This loan allows you to only use the line of credit as necessary, and only pay interest in the actual amount used. Construction loans only last a year, but you can use this to buy land, purchase materials, pour the house foundation, and the like. To have it approved, you need to state what you’ll use it for, as the bank will need to approve your construction plans first.
Conclusion
Every market is different, as with every buyer. You may be adamant about building your home now, but the best option is to still talk it over with an experienced real estate agent. They’re knowledgeable about all the deals, neighborhood details, and any new communities. They can also help you decide if building or buying is best for you, so don’t hesitate to voice out your thoughts.
If you’re looking for an agent to help you come up with the best home design in Owensboro, KY, keep in touch with us at English Design Services - we’re happy to help!