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building a house on my own? can i do it?

  • 12-12-2007 8:18pm
    #1
    boardsofdublin
    Closed Accounts Posts: 9 ✭


    Hi all. I'm hoping someone can help here with this.
    I got a plot of land from my dad nearly 3 years ago, got plans into fingal and have 2 years left to build it.
    The plot is kinda big, the house i have plans for it 1900sq foot. the land was priced at e100,000 at the time.
    Now i am very stupid at these things and i really need someone to help explain this in idiot form to me.
    What i would like to know is:
    I work in a job being paid e23p.a. at the moment, i am starting a new job in the public service next year with around the same pay. Would i get a mortgage to build this house on my own? How much savings would i need minimal to get a mortgage seeing as the land is worth a lot.
    I have heard i need to be in a job for at least 6 months before i could apply for a mortgage.
    Would a bank take into account that i would be renting 3 of the rooms out?

    Thank you if anyone can help me and if i have put this thread in the wrong topic listing, i'm very sorry and move if it has too.

    THANKS!!!


Comments

  • #2
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    The ONLY one who can tell you if it's possible is the bank.


  • #3
    boardsofdublin
    Closed Accounts Posts: 9 ✭boardsofdublin


    Thought as much, just thought someone else would have been in the same situation as me, with low wage and building on there own.


  • #4
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    Well, it is a very low wage.

    How much will the build cost?


  • #5
    Fries-With-That
    Registered Users, Registered Users 2 Posts: 776 ✭✭✭Fries-With-That


    Banks like to see some kind of savings record, usually dedicated savings of at least a year.
    The would also like to see a credit history, that you bought something on credit and paid it back with no hassle or a personal loan that you have taken out and paid back over a reasonable period of time.( credit union loans may be used as a financial history if they're not just a few hundred euro here and there).
    Banks will also take into account the fact that you intend to rent out rooms, they will look at the rental price for a house share in the area(this has to be certified by an auctioneer)
    I'm not sure if they'll take the land value into account because with nothing built on it its still just a field.To you its a site to them its a field.
    And if you take the standard two and a half times income the most you can hope to borrow is is approx €60k, some banks use 3 times income.
    Some of the banks now use a different system to calculate how much you can borrow its done on net disposable income (its complicated but they can explain it themselves.)
    Its not neccessary that you be in a job for six months or longer if you can show employment history( they don't want to see someone that changes job every few months.)

    I also know some people have taken small loans to develop their site(field) maybe put in foundations and do some blockwork then get the site valued as a build in progress. How much is it worth with this much work done and how much would it be worth with a complete house.

    The best thing you can do is talk to an independant financial advisor they are in the business to make money so'll they'll tell you the best way to go about getting the loan you need to build your house.They can also compare all rates from all banks.
    The most important thing to remember when discussing your mortgage is the life cover aspect. Make sure that its just mortgage cover you get or you may end up with a life cover policy costing you far more than it needs to.

    Hope this helps.


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