Self-Build Mortgages  Introduction

Self Build Mortgages

Self-build projects are exactly what you would imagine; the investor or purchaser locates...

Get a Free Quote Introduction to Self-Build

Self-build projects are exactly what you would imagine; the investor or purchaser locates a plot of land that they feel is suitable for building on (this plot may already have planning permission) and then builds the property to their individual specifications. A self-build provides one of the best ways of ensuring that the design and layout are exactly what you want and that the new build property is the most liveable or saleable (depending on what you are hoping to achieve) proposition possible.

Advantages of Self-Build
Without a doubt, the things that attract most people to the idea of self-build are the potential financial gains and the freedom to make choices about the location and type of property that you prefer.

For an investor, the main benefit of creating a self-build is the potential profit margins. When purchasing a new build property, the purchaser is paying the builder's premium, which not only includes the cost of building the property but also his profit margin. Investors who are prepared to manage the build themselves have discovered that they can bag the profit margin, if they manage the entire project.

Another benefit, which applies to both investors and those who intend to live in the property, is that the building can, quite literally, be made to order. For instance, if a family requires additional bathrooms this is possible, or if it is felt that a particular layout would generate a higher asking price, then this can also be accommodated with a self-build.

Disadvantages of Self-Build
Finding the appropriate plot of land can be surprisingly difficult. Not only is it necessary to locate the ideal plot, but you also need to obtain the necessary planning permission. Even if the plot already has planning permission, you will have to ensure that any changes you make to the submitted plans are also approved. Creating a self-build does not always offer the degree of flexibility that a purchaser would like to experience.

Managing a self-build is actually incredibly stressful, time consuming and can be very expensive. Financing is often only offered in stages as building progresses, which may involve a great deal of bureaucracy. Employing builders and other professionals is also not without its difficulties and requires a great deal of time, energy and commitment - this is where the profit lies!

Summary
Bullet Point Self-build is a popular way of creating either a healthy profit or the property of your dreams;
Bullet Point by creating a self-build, an investor can make sure that they pocket the profit margin normally taken by the builder; but
Bullet Point the process can be very time consuming and stressful and requires an excellent organisational brain if the figures are really going to match up!

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Typical Interest Payments

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2.89%

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2.89%

Discounted Rate

2.99%

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2.99%

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3%

 

 

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