Advice Needed - Buy or Build.

Hi folks,

I'll be 31 in a few months time and after a few years messing about i have cleared off all my debts and am now in a position to start looking at getting my own residence. At the minute i am back living with my parents and i estimate that i could have approx 20k saved by the end of this year. I have two options at the minute, 1 - Take out a mortgage on my own (approx 170-180k for a fairly decent new detached house here at the minute) and spend the next 25-30 years paying this back or 2 - Sit tight over the next 6-8 years saving approx 20k a year and build a house in stages when ever i have the money. I believe i could get a fairly decent site now for approx 40k. What do you reckon i should do?? Any advice appreciated!

I wouldn't contemplate building a house in stages such as you refer to "whenever I have the money" If you are contemplating a self build you need to prepare and plan well. The build is all about scheduling and costings. You need to have your trades lined up so the build progresses steadily. I wouldn't dream of doing the blockwork and roofing and then waiting until you have enough money to do the windows and so on. Apart from the fact that you might find it diificult to insure the structure during the build, there is a risk of exposing the structure to the elements for prolonged periods of time when it may not be watertight, and then what about vandalism, theft etc.etc It would be far better imo to do your homework in advance and then borrow and complete a self build in a shorter period if that is your choice.

Hi Hanks09,

At the minute there are such good bargains out there, you would probably get a fine house if you bargained hard and were mortgage approved. With regard to building and sorry to sound negative - we built our own house here on a plot of land 15 years ago and were going to go and build another had plans done, full planning but with downturn the price we would get selling and the price to build didn't stack up. I won't go in to too much detail but you would be surprised how building a house from scratch and finishing it to include tarmacadam and entrace and all that goes with it eats up money - I know a few people that like myself over the last year had a house and instead of extending etc decided to go on and build from scratch - both of them said if they had it all over again they might not have bothered and both of them build by direct labour. If you are hell bent on building add about 30% on to the build price for the finish of the house - this wouldn't include for fencing landscaping.

Best of luck in your decision

Angela59

P.S. what part of the country are you in that sells sites for 40K?

Don't forget planning permission only lasts for 5 years at the end of which the house must be substantially completed.

Thanks all for the advice, all taken on board. I guess what is bothering me is that by the time i am 40 i could realistically have my house 100% paid for were as the alternative is that if i go down the mortgage route i could be near 60 before i have the same house paid for. You know what i am saying? I would rather spend them extra 20 years enjoying my life instead of being tied to the bank. To be honest i haven't a clue about buying or building so any suggestions on what way i should proceed is greatly appreciated.

Angela - Am in Donegal, was offered a half acre site with full PP for 30k, the location is a bit too remote for me though.

I would look up self build info online. It'll take a while to research. Also find out when next one is on in RDS or around the country as would have loads of info and ideas how much costs are etc.

On top of all this, how would your parents feel you staying at home all this time? How much would you consider to contribute to home costs and helping out?

Parents are happy to have me back and will only accept a small sum off me per week. I don't want to stay with them indefinately anyway but was thinking that stick tight for 2 years and i will have approx 40k saved by then. I am not necessarily 100% all for the self build option so if anyone can give me some other options that is or could be available to me?? Again ill repeat i am pretty thick when it comes to this sort of thing so don't be afraid to point out even the most obvious of things!

Ok Hanks. I think it is important to respect them as costs at home are costly IMO. Think what you would be spending if you didn't live at home? Certainly save plenty but contribute to what you enjoy most at home, food, heating,esb,phone costs to name but a few.