Build or Buy

320d

Not sure if this has been discussed before (post link if so) but do many people think it would still be better value to build at the moment considering that the necessary services, sites, etc are cheaper? Or is it better to be patient and wait for current house prices to continue to drop to ~50% of peak value and maybe trade-up in 10-15 years?

mrgaa1

this is one of the main issues at present - the costs of materials are shooting up due to lack of demand and lack of manufacturing. Plus with new regulations in place the cost of building a house is probably similar to that of a few years ago. Labour costs may be down but materials are up - plasterboard, PVC etc.... And although the brickie, joiner may be less per hour you'll find that sparks are charging the same. The cost of floor/wall tiles are up because there are only a few manufacturing plants in Spain open as opposed to the dozen or so previous.
But then again if you are living in your new built home then over your lifetime these won't matter.

D3PO

mrgaa1 wrote: »

the cost of building a house is probably similar to that of a few years ago.

eh no its not. your miles off the mark. You just need to look at rebuild costs for insurance purposes to see theres a huge drop in build prices.

OP the issue is getting the bank to provide funding for a build right now. hard enough to get a mortgage as it is. even harder to get one for building on a plot

ei.sdraob

As someone who build recently and still finishing out the work

definitely build


* the cost of land has plummeted,
* the cost of labour never been cheaper (especially if you pay in mostly cash )
* and materials are cheaper (tho not too much) since alot of places are trying to shift stock, and there are some bargains if you shop around (and yes haggle), for example I bought wooden floors at a liquidation sale for fraction of the price of nearby shops


thats only on the cost side


alot of the homes build by developers will not meet the latest regulations and standards and are very badly build, for example how many new homes you know have solar heating in them (renewable source of heat/energy is required by latest regulations)?

as a self-builder you can ensure you know everything that is going into your home, i went mad on insulation, heating and ventilation for example, alot of the homes build in the last 10 years are dodgy have rubbish for insulation (if at all) and of very low standard that will cause all sorts of problems down the road

320d

Thanks all for the advice as I am looking at maybe purchasing a site in the next 12-18 months but would like to ensure that it would be worth my while putting the time and effort into going this route.

Following on this have many bought house plans on-line?

ei.sdraob

you might want to spend few hours/days reading this forum

http://boards.ie/vbulletin/forumdisplay.php?f=876

i myself found it very helpful and informative

johndaman66

mrgaa1 wrote: »

this is one of the main issues at present - the costs of materials are shooting up due to lack of demand and lack of manufacturing. Plus with new regulations in place the cost of building a house is probably similar to that of a few years ago. Labour costs may be down but materials are up - plasterboard, PVC etc.... And although the brickie, joiner may be less per hour you'll find that sparks are charging the same. The cost of floor/wall tiles are up because there are only a few manufacturing plants in Spain open as opposed to the dozen or so previous.
But then again if you are living in your new built home then over your lifetime these won't matter.

Read in the context of the entire post or indeed otherwise I am somewhat at odds with this last comment mrgaa1

johndaman66

It is a good question and one which has being debated to the nth degree no doubt. I too am in a similar situation and would like to be a home owner one way or another within the next few years all going well.

On the one hand if you buy a house already built you know what your getting and avoid the hassle and torment that can be associated with a self build. Granted you can view the plans of the house which the architect will provide but I'm talking more in terms of finish...A friend went down the self build route and is now regretting it as the finish is pretty poor. Plaster cracking and other associated problems have manifested. Worse still he recommended the builder to other friends of his when the build was in progress. I do appreciate that the finish on many houses built in the last 10 to 15 years can be suspect to a greater or lesser extent but at least you know in advance what you are getting. The flipside is one can commission a self build to their own specification, requirements and finish, future proof it, conservatory, geo thermal vs oil/ gas fired heating etc as may be desired.

As previously suggested I would recommend a good read through the Planning and construction forum at this stage as its highly insightful and provides good scope in terms of costs and potential problems. If you do go down the self build route it may well end up being akin to a second bible to you!

Looking through the Construction and planning forum it appears that the cost of self builds, even some of quite modest dimensions can be astronomical. Even council and legal fees alone can be over 10k easily depending on the county. It would appear that more fancy and complicated designs can be absolute money pits. I know myself from a few one off jobs being done very recently in parents home, hardwalling, installing central heating that many trades men charge astronomical rates despite what some would suggest. They did get quite a few quotes and went only with tradesmen they were able to acquire references for.

Another bowl of contention on self builds is direct labour versus leaving the entire project in the hands of the builder or employing a project manager. Many would argue that you will save considerable money if you take control of the project entirely yourself and hire your own tradesmen for each unique job and shop around for the building supplies yourself. Others argue that the builder is able to get the best trade rates...it seems to be a highly contentious subject. Another consideration is that if one has not managed a self build before it could prove a nightmare to co-ordinate the works of the various tradesmen. It may well help and in terms of costs also if you have friends/ relatives who are builders/ plasters/ plumbers/ sparks/ track machine drivers etc.

There are no doubt many more considerations regading self build versus buying a house but hope I have highlighted a few big ones in a half logical manner!

I am in a position where I could acquire a site for an absolute nominal consideration from a relative if I were to build but even so I'd be more inclined towards buying an already built house as it stands, given the costs and potential pitfalls associated with self builds. Keeping a close eye on daft.ie and myhome.ie and hoping that house prices continue to fall. I do remain very open minded all the same though and am keen to hear peoples thoughts and experiences who have bought or went down the self build route.

displaced dub

320d wrote: »

Not sure if this has been discussed before (post link if so) but do many people think it would still be better value to build at the moment considering that the necessary services, sites, etc are cheaper? Or is it better to be patient and wait for current house prices to continue to drop to ~50% of peak value and maybe trade-up in 10-15 years?

where i live its more like 60%

oceanclub

D3PO wrote: »

eh no its not. your miles off the mark.

http://www.boards.ie/vbulletin/showpost.php?p=56954079&postcount=81

19-08-2008, 10:56

Irelands economy is in good shape
house prices are now realistic
Now is the time to buy
DOOM & GLOOM merchants should not be allowed to run the country
Banks are lending money

Good old mrgaa1 - still as right as ever.

P.