Buying your first home is a truly exciting feeling but, as many first time homeowners will tell you, building your first home is even more exciting and wonderful. You can choose the layout and design of every room and create your property your way - just how you want it to look. Excitingly, building your first home doesn’t have to cost a fortune, and now is the perfect time to think about starting your project. That is because mortgage fees are set to be lowered; something that is great news for first time buyers and builders. According to Reuters, the Obama administration will reduce the fees it charges first-time home buyers for government backing of their mortgages as long as they undergo counseling when they purchase a home. The Federal Housing Administration guarantees about a third of all new U.S. mortgages, and it is hoped that this change could help many home buyers get into the market, which has slowed sharply in the past 12 months.
There are several things to consider if you are deciding whether you should build or buy your first home. Firstly, is the home you want already available in the location you want? If not, building your own home can ensure you have both the property location and the property style you want without having to compromise. As Quote zone remind us, your home is probably the most expensive purchase you will make: why shouldn’t you have the house you want without making sacrifices? CS Monitor also report that looking for a previously built home isn't always the most cost-effective move, and that building your own home can sometimes help to save you money. This is particularly true if you have any transferable skills and are able to undertake any of the building or associated work yourselves. The cost of self-building will go up considerably the more contractors are involved in the build, so rolling up your sleeves to get your hands dirty (even if you’re trying things you’ve never tried before) could well save you a fortune.
The Telegraph deliver the final benefit of building your own home: if you’re designing and creating your own property then you can incorporate high-performing eco credentials. Not only will these save you money on your utilities in the long run, they will also be very appealing to new buyers when the time comes to sell your home.
Build an Investment Home
If you’re financially savvy then you should keep the resale-ability of your home in mind during the construction process of your new home. Smart Asset advise that you should ensure your first home is an investment property, and think of it as a finished product rather than simply as a ‘starter home’. Fundamentally, the thought process is that it’s more important to lead with your head than your heart. When you want to move on to a new home, you need to make sure the home you have designed is either easy to sell on to another young family or rent so that you have a constant income coming from your investment. Rent increases are growing much faster than purchase increases in most parts of the country due to increased demand and tighter restrictions on loan applications for home buyers. Building a home that will be desirable to the rental market in your area, therefore, is a smart and seriously business savvy move. That means that whilst you might really want a room shaped decorated like the Death Star, or your kids might really want a tree house built into their bedroom, you should consider these design features carefully and think about the future impact of those decisions before you commit to them.
Building your own home will be one of the most stressful, expensive, fun and life enhancing things you ever do. Although it will take a lot of hard work and certainly will be considerably more difficult and time consuming than purchasing a preexisting property, the rewards you will receive once the process is complete will make the whole process worth it. Why not explore the idea further today
Contributed by reader, Emma Bowden