Guide to Buying Land and Building Your Own House

Ever dreamed of building a home for you and your family from the ground up? Well, it’s no easy task, so get your hard helmet on and let’s take a look at some of the foundations…

1. Find available land for sale

First and foremost, you will need to do some research to find an available plot of land for sale. This isn’t as simple as it sounds, as you will need to find a location that is suitable for your lifestyle, has enough local amenities nearby, and is well within your budget to ensure that the property is realistically attainable.

2. What to look for when purchasing vacant land

Buying vacant land is a complex decision with a number of things to take into consideration: Will the location have a local community? What costs are involved? Will you have road access? The list is endless, so the best thing you can do is get a property professional on your side who knows the ins and outs of the market and can get you in touch with all the right people.

3. Finance your land purchase

Property development finance is a specialist form of funding that you will need to finance your self-built home. There are several ways to finance your building lot and construction. Many lenders will cover construction loans which will cover the expenses of buying the land and building on it. You can also apply for a land loan, which typically comes with higher interest rates as they carry more risk. To get approval for construction or land loan, you’ll need to present plans to your lender, who will most likely want to see that an experienced builder is doing the work.

4. Building permit preparation

In order to secure a building permit, you will need to get in touch with a ‘Building Control Body’ (BCB) to check the building regulations or apply for approval. They are local authority BCBs in which you can apply for approval from your council, or there are private BCBs where you can apply through a private approved inspector who will tell your local authority about the plans. This is called giving an ‘initial notice’.

5. Determine whether your land is suitable for building

You’ll find that one of the most crucial steps for building your new property is to have an area surveyed by a professional. A good surveyor can tell you the dimensions of the land, whether anyone else has rights to use the property, and the accessibility of the land you intend to build on. Once you’re confident and certified that your chosen land is suitable, you can start planning to build your new home.

6. Evaluate the cost of adding utilities

Utilities such as running water, electricity, and gas are a necessity for residential properties and you won’t be able to build a home without them. If you’re hoping for a more rural setting for your build, you will have to find out whether there are existing utilities in place. In the case that there aren’t any, you will need to calculate the additional costs of installing a usable and septic system, as well as running electrical lines. If you’re unsure of the process, it’s a good idea to contact a property professional who can help you find local contractors and source quotes so that you can reassess and tailor your budget accordingly.

7. Get quotes from local home builders

Patience and realistic expectations are key when it comes to planning out your timeline with your home builder, and you must be clear on what you want from your new home. It’s advisable to speak to several different contractors and ask them for in-depth quotes. Building a home from scratch can take months or even years depending on your plans, so it’s essential to make sure both you and your contractor agree on realistic goals for the cost of your project, and your expected move in date.