Self build tips

There are a huge amount of advantages to building your own home especially in the current credit crunch climate. The Bank of England recently reported that 1.2 million homeowners in the UK could soon find that their homes are worth less than the money they have borrowed against it. Most self builders, on the other hand, end up with a home worth at least 35% more than the money they have borrowed against it on the day they move in.

Also, a self build project typically takes at least 18 months to complete after the initial purchase of a plot, so a building plot which is bought now may not become a home until 2010, by which time property values may have risen again. 

Although borrowing is slowing down, self build mortgages are still relatively easy to obtain, with borrowers typically receiving between 75% and 90% of loan to value, which is usually released in stages over the duration of the project.

If all this is sounding appealing, then read on for self build tips from our resident expert Chris Lee.

Always overestimate your budget

Although everyone is strapped for cash at the moment, it is really important to have more money than you think you'll need for a self build project. There is always something which will cost more than expected, and a half finished house is no use to anyone.

Choosing land

Choose your land carefully. Although there should be more land available at the moment, as some developers are having to shelve over-ambitious projects, there are still a lot of considerations with self build plots. There is the usual househunting check list – shops, schools etc, but you also need to consider local hazards. Is the plot a flood risk or has it being built on mining ground which would put it at risk of subsidence? Shop around for a good quality plot which fulfils your needs.

Take time to check out tradesmen

As harsh as it may sound, one of the advantages for self builders in a credit crunch is the competitive prices for building work, electricians and plumbers. Everyone is lowering their prices to get work in, so make the most of it. On the flip side, though, the economic crisis is seeing more and more building firms go under so try and vet yours carefully as the last thing you need is for your contractors to go bust halfway through a job.

ReMember, cheapest doesn't always guarantee the highest quality. Ideally, the best way to find a builder is by recommendation from someone you know and trust. But if this is not possible, then try and get three tenders from reputable firms, and make your choice based on the best balance of price and quality.

Work with your architect

Obviously you will have quite firm ideas about the home you want to build, which is great. But listen to the advice that your architect offers, they have years of experience, which is what you are paying for after all. If you need advice on your design before you find an architect or even a starting point for finding one, check out the RIBA website, www.architecture.com which is full of useful resources.

Claim back your VAT

Don't forget that you can claim back VAT on goods and materials, although not on services, which saves more cash on the project. Visit www.hmrc.gov.uk/vat for more details.