Self-building is an increasingly popular way to create your own home. For those wanting custom specifications or to utilise a certain plot of land – a self-build can allow you to tailor your property to your wants, needs and requirements. But there are also a number of financial attractions for building your own home – let’s explore a few of these.
Cheaper than buying a new build
First and foremost, a self-build property should be cheaper than buying a new build equivalent. Developers will add their own margin on top of building, labour and land costs, increasing the property price for the buyer. With a self-build, your total costs will include the land (if you don’t already own it), building and labour costs – but you can save costs in each of these areas if you know how to. Savings from bulk material costs right down to property necessities like these will all add up – potentially saving you tens or even hundreds of thousands compared to buying a new build from a developer.
Return on investment
Another possible financial benefit is the market value of the investment you are making. Building a house yourself should, in theory, leave you with a property worth more on the market than you built it for, providing you’ve kept an eye on your costs. You probably won’t want to sell after you’ve built your own home, but it can be nice to know that you’ve invested your money wisely.
Further money can be saved through reclaiming VAT on your self-build project. Labour and material costs can be cut through reclaiming VAT, lowering your overall build spend or freeing up budget to invest elsewhere in your property. But you’ve got to ensure you claim within 3 months of the building work being completed to get your refunds.
Save on stamp duty
Another major financial benefit of building your own house is the stamp duty savings you can achieve. For a self-build project, you only pay stamp duty on the land you buy – presuming you don’t own it already. If you were buying a new build home, and it wasn’t your first purchase, you would have to pay stamp duty on the property.
Build a home that’s energy efficient
You can also attain long term benefits from building your own home. You can use alternative or more advanced building methods, materials and solutions to make your home more energy efficient or environmentally friendly than other property options. You have full control over the heating system, insulation materials and the addition of things like solar panels, sun tunnels and energy sources to save you more money in the future.