How do you go about and build your own dream home?
Buy a property. Tear it down. Get a contractor. Get a construction loan. After it’s done, then convert that to a normal mortgage. Can anyone share their experiences in going this route?
Buy a property. Tear it down. Get a contractor. Get a construction loan. After it’s done, then convert that to a normal mortgage. Can anyone share their experiences in going this route?
You can do this yourself. However you will have a hard time getting loans. There are two problems. First you have to pay for the place you are living (and then get rid of it!) while also paying for the new place that you will live. Most people are paying as much to live in one place as they can afford (this is right out of Adam Smith), so it is unlikely. Second, banks don't know if you can actually manage all the details, they don't want to be left when a half built house when you divorce (it is very common for couples to divorce over the stress of building a house).
Be very careful about budget if you do this. I know a contractor who can look at a print and estimate the final cost - if he builds the print he will be within a thousand of the final cost. When he builds for someone else the final cost is almost always $30,000 more than his estimates - the floor plan is the same but all the little upgrades added up. This is even though every time someone asks about an upgrade he warns them their price goes up and the house won't be worth any more.
The sane way of going about "building one's dream home" is dependent on a bunch of variables that you don't define.
Basically you have two options, be rich enough that you can pay for whatever the hell you want or be moderately skilled in just about everything and do it all yourself.
Regardless of which path you take you probably also want to do it somewhere that's rural, poor or preferably both so that nobody cares what you do. All the problems involve people. Busybody neighbors, local officials, etc so the more people you can cut out of the equation the better because each of these introduces a whole new set of problems and acts like a stress multiplier.
Like everything else in life the faster you want to go from start to finish the more it will cost.