Self build then sell?

because_I_can

Hi,
I was wondering if you all could give me some advice on this?

I've a good contact who has a building firm and will do a build for a good price im sure. I have plans for a circa 2200sq foot house that can be built&furnished for about 140k+- 5k (I think!!) Also the attic of this can be converted adding another 1000sq foot on it -- eventually.

So in my head all i need is a decent site with full planning permission (so i can sell whenever i please) and the go ahead from a bank and about €10k as deposit on the site.

Hopefully after a year or so i should see a nice profit? What do you all think? any issues i should look out for? What about the banks and loans etc? I've about the 10k mark put away. Enough or too little?

Thanks

gamer

theres an irish website called something like sitefinder,you need to register to get acess to thier full database, theres sites for sale in buyandsell ,provincial papers online,evening herald,my advice is buy book on how to selfbuild ,build your own house,theres english selfbuild magazines,you,d need to project manage whole build yourself to make a profit.most sel builders,employ 1 electrician to do all wiring, 1or 2 plumpers to do all plumbing,bricklayer,say 2 ,plus 2 labourers, pay by the job,not by TIME.

gamer

cost of house to build in dublin,plus site is 180k average semid ,just to give you a guide ,i think you,d need at least 25k to get started,i hear credit unions are giving out,large loans if you are in full time employment.find out the cost of a site with planningpermit, down country i think its 60k minimum.

stepbar

Hi there,

If I was you I would go for the self build its a great way to make a few quid. My father is nearly finished a 5 bedroom dormer type house with a good sized garage and great views in Leitrim. Hes an electrican so he has good contacts in the building trade and he knows whats good value and whats not. AFAIK the house itself cost 110k to build (granted he had a free site worth 40 to 50K in a good scenic location not far from a mid sized town and all services) and as well as that he was able to the electrics himself for half nothing. The house is well finished, has under floor heating, solid wood flooring, velux windows double glazing etc. Its roughly 2000 sq ft. One of the big things that the banks will look for is insurance that will cover all potential risks on site, think it cost something near 2k with a firm down in Wexford. In the present market the house is easily worth 250 - 275k. Mortgage wise the bank gave him 110k, no payments for the first year. As well as that no other security was required because the value of the mortgage would be easily covered by the amount it would sell for. Hope that helps

keegake

I checked into this before because my partner is a builder and we thought that it would be a handy investment - we were offered a site with full planning permission for€100 or something in the lines...and then the house would cost maybe €120,000 to build (a fairly big house) and it would sell for in the region of €400,000....we didnt go ahead with it cause we were told we would have to pay capital gain tax of maybe 42%...

Hitchhiker's Guide to...

surely the CGT was because this was a second house? obviously, no CGT on first home.

also, isn't CGT now 20%, and not charged at the marginal tax rate?

stepbar

Whose name is on the title deeds of the first home? An effective way to make sure you arent taxed to the hilt is to make sure different names are on both.....

Takeshi_Kovacs

Roundtower2 wrote:

surely the CGT was because this was a second house? obviously, no CGT on first home.

also, isn't CGT now 20%, and not charged at the marginal tax rate?

Wouldn't you have to be living in the home for a couple of years or so, in order to avoid CGT?