The budget for the build will be affected by many things, the most obvious being the maximum you have and can raise.
However it is also affected by very many variables, including:-
So where do you start
There are two main routes the 'what can I afford' route and the 'how much would my dream home cost' route. Starting from either you adjust, modify needs and try looking again, until somewhere near them you can get into more accurately working everything out.
The 'what can I afford' route
You start with the maximum figure you can raise plus what you have, deduct from this the amount you would expect to pay for a building plot in your chosen area, and then divide the balance by standard figures, to get roughly the number of square feet/metres you could have in types of property. Then look for a design that matches something similar to what you want within the same square footage.
The 'Dream home' approach
You start by looking at designs for something similar to the design you would want, having found one, look to see what the square footage is and multiply this by standard multipliers to get the approximate cost of build, then looking at the plan see roughly the plot size required and cost plots of approximately the size in the area of choice, to see how much it would cost. Adding the build and plot gives you the cost.
Your initial idea as to a dream home may involve a mansion, pool etc, but, scaling down to what you really want can also allow you to start along the lines of the property you would like to have.
The dream house approach can also of course be based equally as well around the design and style of home you feel would be ideal for a place and market.
Moving towards your eventual budget
From the chosen exercise above, you will be able to have some idea, even if only a rough idea as to how you are faring, if you need to drastically change something or if you are into minor adjustments.
With so many variables you will need to decide which factors are important to you. Is the geographic location important, are you trying to be near friends or relatives, or could you select another area. What about the size, style, and the like, what is it you need and what are the extra features like a guest room, multiple ensuite facilities etc worth to you. Can you utilize the space better, so as to reduce wasted space in halls, etc. Could you select a design that would incorporate unused space that could be made use of later when more funds are available. Do you need a garage initially or could it be added later.
You may not be in a position where the maximum you can raise is the problem, you may be able to have exactly the design that you have come up with, that represents your dream home. However you may want to still look at it in greater detail and look at the cost of all the features, rooms etc, and question if the additional mortgage payments that this will create will be justified. You should also carefully consider if the home you are proposing suits your needs now and in the future, for example you may have a number of teenagers using up a lot of space, but in a year or two's time, will they be off to university, flown the nest and you end up with a hotel sized property for two.
If this is a financial venture and you are eventually looking to sell or to let out this property, then you should also look in detail at the market in the area, is there a need for property of the type you propose, would it fetch a price comparative to the investment or would another combination be more profitable.
Creating your draft budget
From the above, manipulation, consideration and research, you come up with something approaching the arrangements and model for the self build.
You can now try to identify typical designs and cost of these, that would meet your requirements. Given the size requirements you can also start to get a more accurate picture of the plot size you need and get perhaps a better indication as to what the cost of this would be.
You should now be
As there are many costs that you may overlook in your draft budget, we have an example format, that may prove helpful Click here to see the example budget. Members will find a more complete example with spaces to add their own figures in their budgeting work book.
If you miss items of your budget it could later present you with a big problem, so rather than omitting item headings include them with zero against them, so that if anything is changed you will still have the item listed to consider.
Variations from the budget
As the budget is a draft set of figures we know full well that it is a guide only. However we should be able to use it in order to help us decide exactly what we should be attempting to do. What size and location of plot, shape and other considerations for the plot, and allow us to also further research the aspects that are relevant to us without having to study everything.
The budget for the plot is critical, as its the first purchase ahead of planning in detail and getting quotes. You may have a price band you have in mind made up of the budgeted amount for the plot and a part of the float. Unless you had a particular plot picked out ahead of starting or have land already, that could be used, the plot cost will most likely be quite a large cost variation from the budget.
If a member we will be actively involved with you in identifying and negotiating the price of the plot for you, plus matching you up with others where the plot will hold more than a single home. Members are not encouraged to become involved in negotiating for plots where the club is also involved in negotiates as we can end up competing with ourselves. Alternatively, if you have someone helping you find the plot or handholding, then each plot that is of potential serious interest they should try to get the price down on, the principle being to make the seller think that you might buy if the price is right, rather than being over excited about a particular plot. They will also look to see if any deals are available, for example two plots cheaper, or if the plot you are being offered is larger than you need, if a second plot could be extracted from it, allowing you to sell it on giving you a near free plot yourself. If your budget is tight, getting help, may be particularly useful, in that the amount you spend on the plot is likely to make a critical difference. Every £1,000 you save on the plot, means of course you have another thousand to spend on the property development, and you will be surprised at how wide the gap is often between what they are asking for the plot and willing to accept, as long as you can convince tem that you have a serious intent to complete quickly.
Where to get standard figures from
Several places above we have referred to standard figures per sq foot or sq metre for different building types. These figures are not difficult to both find and deduce. If you collect brochures from timber frame constructors and the like, often designs will be shown and will both give the price but also have it represented as a rate per sq foot. Specialist magazines that feature self builds likewise often have a facts block that quotes the costs and gives the build figure also as a rate per sq foot or metre.
In addition there are pricing guides that you can buy that will give exactly the figures you want for each circumstance.
We have also produced an example, somewhat simplified set that you will probably find is close enough for your first attempts and then later you can refine them better. Click here to see our example set.
See also
Members should refer to the budgeting work book and information supplies with it.
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