BuildStore: Consider personal circumstances during self-builds
20 January 2012
Written by Simon Whittaker
People planning to build their own home should consider the scope of the project and their personal economic circumstances.
This can be useful when attaining the right property development finance, BuildStore chief executive Raymond Connor explained.
He recommended adding a contingency budget of at least 15 per cent, as this can help individuals deal with any unexpected costs and issues.
It is important for members of the public to ensure they are satisfied with their specifications and design before they begin the project, as making any alterations midway through the initiative will cost people money and time, the specialist noted.
He said people ought to begin the scheme by becoming educated in the subject.
This will make all of the choices "much easier" to make, Mr Connor argued.
The expert asserted this should involve gaining knowledge of terms, legalities, the method of construction and required materials.
Being able to access the correct amount of cash when it is required is crucial for both the budget and schedule of a self-build project, Mr Connor continued.
He advised people to purchase insurance, as they will be liable for any accidents or injuries that happen on their plot once they have bought the land.
Some mortgage lenders will not provide people with funds if the site does not have adequate protection, the expert remarked.
Mr Connor pointed out many individuals act as the project manager when undertaking self-builds, which can cut the cost of the project by as much as 20 per cent.
However, they could hire a person to fulfil this duty, while some architects can provide the service and carrying out the role requires a "significant investment" of time, he argued.
It is also important to keep any building material receipts, as people will be entitled to claim the VAT paid for these products back from HM Revenue and Customs within three months of the dwelling's completion, the specialist added.
