10 Things to Know About Building Your Own Home
24 Oct 2016
Posted in: Mortgages
Building your own home is one of the most challenging and rewarding experiences you’ll encounter in your lifetime. Whether it’s a grand design or a modest house customised to fit your needs, your self-build is something that will hold huge sentimental value for years to come. Read on for 10 things to keep in mind when building your own home.
Plan for Success
Write down all the reasons why you want to build your own home and consult that plan throughout the process. Remember to think about the space you’ll need in the long-term. Will your family be expanding? How much storage will you need? Are you planning around the best source of light? Use an Irish cost calculator to estimate your approximate budget and try to stick to it as best you can.
Expect the unexpected
Many people who build their own homes encounter something that holds back progress on the build. There are so many pieces involved that something is bound to take the plan off track, whether it’s materials, weather or supplier issues. Have a safety cushion in your budget in case something goes wrong, and you’ll keep your schedule on track and reduce stress at the same time.
Choose your location wisely
You may have found the perfect secluded location with amazing scenery and views for miles, but are you close to schools, shops and public transport? It might not impact you right now, but if you’re planning on having a family or selling the property in the future, it’s worth considering.
Don’t get ahead of yourself
Remember that you need planning permission before you can progress with a self-build. Contact the local council to ensure that you are adhering to any rules in your desired area.
Invest in the best people
If you want to cut down your budget, don’t start by compromising on talent. Ensure the reputation of your architect and ask around to get word of mouth reviews for anyone who will be involved in building your new home. Everyone from builders to engineers should be well-qualified. Get several quotes before making a final choice. Remember, if a particular quote sounds too good to be true, it probably is.
It’s likely that the cost of your build will be paid bit by bit, so ensure that you keep track of all your costs and request detailed receipts from your suppliers. Your architect will be on hand to inspect progress and prepare contracts, but it is important to stay on top of all paperwork and manage your budget carefully. Making sure everything is paid on time will mean that there are no delays.
It’s likely that you’re investing in a property for life, so you’ll want to ensure it’s well insulated. The Building Regulations Standards in Ireland requires a minimum of a B rating for new homes (Technical Guidance Document L). Splashing out on an energy efficient home will save you a lot of money in the long-run so now’s the time to make that investment. A-rated windows and doors are a good place to start. New builds have the advantage of gaining maximum benefits from the sun and by installing solar panels, you’re helping the environment and reducing your bills at the same time.
Securing a Mortgage
If you think that you can’t get a mortgage because you have chosen to self-build, then think again. Mortgages are available for customers who choose to build their own home at very competitive rates provided you meet all the usual criteria, and you can use our handy Mortgage Calculator to get an idea of what your monthly repayments would be. If you’re a first-time buyer, AIB can offer a mortgage of 90% on a build of up to €220,000 or 80% loan to value for builds over that amount.
Consult your checklist
For self-build customers, the requirements to secure mortgage approval is a little different. You’ll need to secure planning permission for your site, provide details of the property size, and a supply a valuation report explaining the cost and estimated market value of the completed property. You’ll also need a copy of your fixed price contract or a detailed schedule of build costs from your qualified architect, engineer or building surveyor. For more details on what is required, we suggest you book an appointment with a Mortgage Advisor at your local AIB branch and they will be happy to help.
Enjoy your creation
It’s very rare to be in possession of a home that is tailored to your own specific needs and taste. Enjoy every minute in your new home and don’t forget to host some dinner parties to show it off!
Want To Know More About AIB Self-Build Mortgages?
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland.
Copyright Allied Irish Banks, p.l.c. 1995.