What would you do?

Dirk Gently

What would you do in this situation.

I am wondering whether or not to go ahead with a new build home in the first half of this year.

Last quote for a self build from several builders was averaging around the 180k mark but that was a few months ago so I reckon it will be the other side of 200k at this stage.

Option A build as soon as possible

Option B Sit tight and wait for the crash and buy an existing house at a knock down price.

Option C Sit back and wait for the crash and build at a knock down price when all the builders are desperate for work after the housing bubble has burst.

I would take option C
but whats good for me may not be good for you. only you can decide!!
best of luck with it.

Dirk Gently

I'm on option C a while now, getting fed up now waiting for the housing boom to slump. Just want to see if people think I should keep waiting a while longer, and if so how much longer. I'm prepared to sit it out another year and keep saving if needs be but dont want to end up costing me more in a years time.

jimmycrackcorm

Pick a date like july this year. If still no slump then build regardless.
Even if there was a slump, you could be waiting for a long time to get to the bottom...

stepbar

180k is steep. Where are you building? Have you considered getting in the labourers on a job by job basis i.e get the builder to put down a foundation, get a blocklayer, plaster, electrician etc yourself. Do the inside fixings yourself and get someone to put in a kitchen for you. Now I know its not as simple as Ive said but with good planning its quite possible to build an average sized house for a lot under 180k. It would be no harm to know a few tradesmen either. In all I would plough ahead slump or no slump your house should hold its value.

miju

if the average price is say 400k in the area your planning on building i'd build now if it's costing you 180k , otherwise i would go with option c

best of luck

hmmm

Property price crashes in other countries have played out over a number of years, so if you're holding off expecting a big thump followed by half the builders in the country being unemployed within 6 months you're going to be disappointed.

iguana

Option d. If I had a plot in an area I'd like to live I'd investigate Swedish and German eco homes. The house would be designed to your ideal and be super insulated and include other energy saving designs that would save money long term.

Even Ikea is launching a home building service. They are cheaper and generally more impressive than standard builds.

jmayo

Any builders/developers I know reckon they will be busy for at least a couple of years more. Even if house prices start dropping there are contracts that have to be completed.
The fun will start when they can't be sold.
Do you have site and planning permission all worked out?
Something I am hoping for is that not alone will house prices drop but this also would have additional benefits of dropping price of land/sites and freeing up some of the precious builders who can't be bothered with "little" jobs anymore.

Noelie

Build ASAP, a self build at 180 would be worth twice that on the open market, so even if there was a crash it would have to be over 50% before your in negative equity.

miju

Noelie wrote:

Build ASAP, a self build at 180 would be worth twice that on the open market, so even if there was a crash it would have to be over 50% before your in negative equity.

depends on the area of course , OP what area you planning on building in?