Thursday, September 7, 2017

Why Don't More People Build Their Own Home?

When it comes to maximising your profits and squeezing every last dollar of value out of your investment, it’s a simple fact that you’ll always be constrained by several factors. You’re limited by the value of property in your area as a whole, you’re beholden to the size and layout of your home and, of course, the whims of the market. Speaking of the market, Australians face an unenviable housing bubble that’s currently resulting in prohibitive housing prices that make mortgages for all but the most affable of us an unattainable pipe dream. Combine the limitations of location, building type and a capricious market with a housing bubble that could bust at any moment and you may be left with a house that simply isn’t working for you.


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There is, however, another way. A way which few prospective buyers would consider in today’s market, but it’s a solution that can pay huge dividends if you box clever and that’s the great Australian dream of building your own home. Many may not consider this a viable option due to a limited budget or lack of experience in project management but with the right help and a little know how building your own property can give you a serious leg up in the property market.


When it comes to home building, many may be put off by the ostentatious and high concept projects that they see on TV shows like Grand Designs. The truth, however, is that a self build is actually is a surprisingly viable option for many Aussies who are frustrated by the housing bubble and want an unconventional way into the property market. It’s a prospect that attracts thousands of people from a variety of backgrounds with varying incomes every year. It’s appealing to young couples who want to get a foot on the ladder as well as retirees looking to downsize, and even those with construction experienced builders looking for that big pet project. Self builds are one of many creative solutions that Aussies are embracing in reaction to the housing crisis.


You can build a home that’s perfect for you and your family


Everyone wants to make their home their own, but many of us have to resign ourselves to some perfunctory changes in interior decor or at best adding an extension onto our existing home. Self building enables you to create a house that’s entirely yours (quite literally) from the ground up. A developed home is what it is and while there’s a certain charm in customising an existing space, a self can be uniquely crafted to your own sense of style, personal taste and the priorities of your family. By necessity, developers have to adopt a ‘one size fits all’ mentality because they’re building dozens of even hundreds of homes at once. Self builders are liberated from this and can develop something unique to them. If you’ve always wanted a walk-in wardrobe, heated floors or an en-suite bathroom, you can incorporate it all into your home (budget permitting) and enjoy the value it adds to the property.


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Build it green and reduce your utility costs


We all want to do our best to lower our carbon footprint, do our but for the environment and hopefully keep our utility bills down in the process. Replacing your light bulbs is one thing but being able to build an energy saving infrastructure into the fabric of your home is not to be underestimated. While solar panels and wind turbines are commonly featured on green building projects, there are much subtler things you can do to make your home greener and more sustainable. You can build rooms of smaller size to make them cheaper to heat and use windows to capture natural light and reduce lighting costs. Reusing or repurposing building materials adds to your home’s sustainability while using recycled materials is a great way of ensuring your home is as green as possible.


It’s cheaper than you might expect!


When self builds go over budget and drama ensues it may make for great and engaging television but the reality is that going over budget is relatively rare (so long as your budget is realistic) and the profitability of self build outstrips that of developed properties. Developers build with a projected profit margin in mind while self builders can get a whole lot more for their money.


You’ll also be likely to pay significantly less in Land Tax as taxation will only be due on the plot of land and not the property itself. Compare the value to that of a standard renovation and you’ll come up smiling every time with up to 25-30% increase on market value.

If you’re frustrated by a capricious market then self building is definitely an avenue worth exploring!

xxo
Kim

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