Budgets & Costings
For many people, the whole point of self building is to make the money they have available for a home go further - so it follows that accurately planning and managing a budget should be a primary concern.
This process should start well before you even buy your plot of land, and shouldn't finish until you've paid the final contractor and jumped through all the hoops to reclaim VAT on your building materials.
When you first begin to work out your budget it makes sense to plan out and weigh up the costs of all the different aspects of your project - even if that means working in round numbers. You should have a total figure in mind that you want to work to - whether you are borrowing money or not and the pie chart below is a good ready reckoner to start with.
- Build costs can range from £1200 to £2500 per square metre - depending on the quality and specification of your home.
- Your plot is likely to be the largest single purchase that you make - typically around 30-40% of your overall budget
- You'll only pay stamp duty on the purchase price of your plot, not the end value of your new home - a considerable saving!
- You can claim back VAT on your building materials and services.