# Self build mortgage - what to include?



## roadrunner (15 Mar 2007)

I`ve been asked to supply building estimates for my self build home - 
what can/cannot be included here.
Furnishing
Kitchen
Tiling
Landscaping
Council financial contribution
ESB connection

thanks


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## micheller (16 Mar 2007)

We're getting a contractor but on his quote for the bank he broke it down into the actual build costs- blocks, roofing etc. and then we totted up roughly what we thought our spend for bathrooms, kitchen, flooring etc. would be and he added this amount to the quote as a separate amount. A bathroom and kitchen would be part of the build costs as far as I'm aware....
We also included council contribution and other fees as the house cannot be built without them- we included pretty much everything that is a build cost... Hope that helps.


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## Vanilla (16 Mar 2007)

If this is for the bank, as a rule of thumb include everything- and over estimate by 10% at least. If you do not need the extra when finished you do not have to draw it down.


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## paulocon (19 Mar 2007)

Have a look at this article on Self-Build Mortgages, might be of some use:


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## HomersCash (21 Mar 2007)

Question for Micheller

Your contractor listed the actual build costs.
You added up everything else;
1) Bathroom ware
2) Kitchen
3) Fireplaces,
4) Contribution fees
etc, etc, etc.

What did contractor list above as when he added to the quote?
Other costs? or actually break them down as you had done.

Finally - banks response?
Did they pass the complete quote?


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## micheller (21 Mar 2007)

Hi there, 
There was a specific name heading for these sundry other costs. But I cannot remember now for the life of me exactly what it was....
We listed the CoCo contribution separately to the rolled up other costs.

But we basically totted them up, gave the figure to the builder and he added it as one amount onto his Quote and the Bank were fine with it.. no problems at all.

Hope that helps,Michelle.


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## gaffhunter (18 Jun 2007)

Hi Micheller,
I'm looking at going down the self build route as well and I've a few questions  I'm hoping you could maybe help with. Firstly, at what stage do the bank generally expect you to start repaying the mortgage? I'm just wondering would I have to pay rent whilst the house was being built as well as mortgage  repayments- is there any way around that? 

Secondly, are you finding that there are many hidden costs that pop up along the way or how do you budget for them? I'm scared that I might under estimate costs and run out of money before completion.

I'm basically just trying to find out as much as I can before I decide if I should  go down the self build route or just buy a ready built place. Any help would be gratefullt received!


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## MulberrySt (18 Jun 2007)

Hi Gaffhunter, 
Generally you commence paying back the mortgage within a couple of weeks of drawing down the stage payments. You will pay a pro-rata amount, e.g. if your mortgage if for 250k and the first stage is 50k then you will make repayments on 50k until the next stage.
Re hidden costs: your best bet is to try to eliminate as many variables as possible from the outset, e.g. draw up a list of 'Specialist Items' for consideration by builders so that the hidden costs are as limited as possible.
As an earlier poster says over-budget: get a decent mortgage from your lender so that you aren't worrying about running out of money (your bank won't want this either!) - bottom line is that if you don't need to use it you won't have to draw it down.
Good luck


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## micheller (18 Jun 2007)

Hiya,

On the question of when repayments start- it's as soon as you take down the first stage payment. Not sure of whether you can get around this- maybe check whether you can take a payment 'holiday' with your lender. I know some lenders do this for 6/12months.

Hidden costs; not too bad so far  We used a contractor though and got a full quote for the build rather than direct labour.So it depends on what you're doing.
Then we did our own research for kitchen/bathroom/tiling etc & we're trying to stick like glue to these. Get everything on paper. I'm trying to be very strict re the budget  So if I find a new cost I try to reduce something else. On top of that we budgeted for 190k but got bank approval for 210k in case of over runs.

For us the advantage of building is : design own home, not paying inflated market prices.

Hope that helps,m.


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## gaffhunter (18 Jun 2007)

Thanks for the help guys!

Micheller, €190 seems like a good price for a home- just wondering what size your house is? Also how long does the process of self building generally take? If I could get a payment 'holiday' as you suggest this could be a runner- I'm feeling more positive about the idea   I think it's the idea of dealing with builders/tradesmen for a prolonged period that's giving me doubts!


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## micheller (18 Jun 2007)

Well, I can't say it's pain free! Our's will be a humble abode  It's about 1100 sq ft in total, it's a garden plot build hence the smaller size.

We first approached the planners Feb 06, received permission Sept 06. Then we had some prep work to do on the house we're building beside- that started Jan 07-Apr 07, and now finally foundations are down and final screed being poured tomorrow over UFH. Our new estimate completion is September- so all in all will be about 18 months from start to finish.
I do feel like it's worth it though, and it will be great to be in a house with our feel stamped on it.

Best of luck!M.


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## Jaid79 (18 Jun 2007)

gaffhunter said:


> Hi Micheller,
> I'm looking at going down the self build route as well and I've a few questions I'm hoping you could maybe help with. Firstly, at what stage do the bank generally expect you to start repaying the mortgage? I'm just wondering would I have to pay rent whilst the house was being built as well as mortgage repayments- is there any way around that?
> 
> Secondly, are you finding that there are many hidden costs that pop up along the way or how do you budget for them? I'm scared that I might under estimate costs and run out of money before completion.
> ...


 
gaffhunter,

Buy a caravan and live on site or build your garage first and live in it, this will save you alot in rent.

With regards building or buying it is far more econmical to build your own home, providing you ensure costs are kept under control i.e. you dont budget of a post and panel fence and put in a blockwork wall rendered bothsides.


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## gaffhunter (4 Jul 2007)

micheller said:


> For us the advantage of building is : design own home, not paying inflated market prices.



After much deliberation and playing with figures I've decided against the self build route, mainly because with prices falling the way that they I won't be paying that much of an inflated market price. I reckon that I can buy a ready built place for about the same price. Build was coming in at about €200g and that was with free land from my parents, the way things are going I could buy a place for just over this and we hold onto the land. So I guess I'll be just going crazy with the design to give the place my own feel!!

Probably as well Jaid79's recommendation of a caravan was too much for me to bere


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## Wexfordguy (4 Jul 2007)

Self build is fine if you have an acre or so to stick the house on,otherwise the house has to look exactly like the one beside it and will be severely limited in size.Also you WILL be playing inflated market prices unless you know a builder or can source the materials cheaply.The way things are going builders are still looking for top whack eventhough the prices of secondhand property are falling rapidly.


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