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Buy or Build Our Own

Posted by on Apr. 9, 2013 at 7:32 AM
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We currently own a 2 bedroom home, which is going to be amazingly crowded in about 2 months...adding a second child to a home that already has 3 people, a dog and two cats. We've been wanting to move for a while now. We want a home with enough land that we can grow everything we eat on our own plot, as opposed to our property and my parent's property (a 30 min. drive). We also want the home to be greener.

We've run into a few challenges. First of all, lack of suitable, already built up properties. Secondly, once this child is born, I will most likely be staying home and we'll go from a combined income of about $84,000 to an income of $52,000. So the cost of the property will be a factor.

I guess my question is do you think it's more financially sound to buy land, take out a building loan and build our own home, or continue to look for the right house? I'm leaning more and more toward building our own, that way we know we'll get the house we want. We can put in a pit toilet, the garden, biofuel lamps, and coal stove, as opposed to buying to have an established house completely reworked.

I don't know...what do you guys think?

by on Apr. 9, 2013 at 7:32 AM
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Replies (1-6):
michiganmom116
by on Apr. 9, 2013 at 7:38 AM

Personally, I think you'll spend less by building it yourself rather than buying then rennovating.  Although, a handyman special may be a better choice if you can find one with property to fit your needs.

Roisin07
by Cynthia on Apr. 9, 2013 at 7:39 AM

 I think your thoughts are good on this. You could even look for some good tax sale properties. Thats how we got our land. This way you should be able to get land cheap and build how you want. Just an idea to look into. At least building you know what your getting! Good luck

pagancuriosity
by on Apr. 9, 2013 at 7:45 AM

Thanks! I'm pretty sold on building our own...I'm not looking for anything big either....a log cabin/bungalow type house. My husband is the skittish one when it comes to money. This is when I wish his dad was still alive. He owned his own construction company and could give us tons of advice.

Just re-read that last sentence...makes me sound terrible. Of course I wish he was still with us for my husband's sake.

baconbits
by Bronze Member on Apr. 9, 2013 at 10:34 AM

 You have to watch with the financing of the loan. Some banks will not allow you to build as you want. Many places won't because the type of home you are wanting to build does not have a high resale value if you would default.

I'd look into homes that need work done. You can most likely get them cheaper and then the bank won't have any say in how you fix it up.

pagancuriosity
by on Apr. 9, 2013 at 12:51 PM

 


Quoting baconbits:

 You have to watch with the financing of the loan. Some banks will not allow you to build as you want. Many places won't because the type of home you are wanting to build does not have a high resale value if you would default.

I'd look into homes that need work done. You can most likely get them cheaper and then the bank won't have any say in how you fix it up.

Therein lies the rub...we're not very handy people. I can garden, can, make my own cleaners like a champ, but aside from hammering in the odd nail where needed, that's about as far as my carpentry skills go....hubby is only slightly better off...despite his dad being in construction for years. But they didn't have the best of relationships while his dad was alive.

 

baconbits
by Bronze Member on Apr. 9, 2013 at 4:02 PM
Quoting pagancuriosity:

 

 

Quoting baconbits:

 You have to watch with the financing of the loan. Some banks will not allow you to build as you want. Many places won't because the type of home you are wanting to build does not have a high resale value if you would default.

I'd look into homes that need work done. You can most likely get them cheaper and then the bank won't have any say in how you fix it up.

Therein lies the rub...we're not very handy people. I can garden, can, make my own cleaners like a champ, but aside from hammering in the odd nail where needed, that's about as far as my carpentry skills go....hubby is only slightly better off...despite his dad being in construction for years. But they didn't have the best of relationships while his dad was alive.

 

 The thing with buying a home that needs repairs is that the bank won't say much about what you do with it. They will "assume" that you are repairing things the way most people would. They don't need to know if you hire someone to redo things the way you want them done. You can sometimes include the costs of the "repairs" in the loan if the cost/value is there. If the house is worth $150,000 and you can manage to buy it for $75,000 then they may include and extra $25,000 for repairs. Then you hire someone to do what you want done.

If you build a home they will require that you submit the building plan and then only front so much money at a time based on what is done. If they don't agree with the building plan then you've got problems and they can send someone to inspect it at anytime.

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