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Build Your Own Dream House!So you're thinking about building your own house, are you? Well, you've come to the right

place! It's a lot of fun (hard work and eventually fun!) to build your own home and it will save

you thousands of dollars(we saved over a Hundred Grand by doing it ourselves - that's pretty

significant cash!). If you happen to live in a Large City, like Los Angeles, or anywhere that

Real Estate Values are 'close-to-insane', you could potentially save millions of dollars.

Interested, you say?? Read on, My Friend, Read on...!

Here's a little list of things you'll need to know:

How to Get Money: You'll need lots of money! Don't stop reading! There are ways of getting

financial support in order to build a house . It certainly helps if you have a swack of cash in

the bank. I'd say at least $20,000. - $100,000. to have as a back up - there are a surprising

number of things that seem to come out of nowhere that require a quick injection of cash.

The amount you will need to 'get in the ground' is, of course, dependent on the style and size

of your home.

Also, if you already own a home, you'll be familiar with the territory and may have a fair bit of

equity, which you can use to leverage other cash. Contact your Bank to get an Appraisal of

your current home and see how much you can qualify for a Line of Credit.

We'll look at Mortgages, Builder's Loans, Personal Loans and Line of Credit options. Often,

it'll be a big 'ol combination of all of the money you can get your hands on in order to pull this

off! Remember, this is not the same as buying a house already built, hiring a builder to build

it, or buying a 'previously enjoyed' house. You'll be completely responsible for every aspect

of the building process.

To get the money to Build Your House, the Banks send out Appraisers to determine how

much of your house has been completed before they will release the Draw Money --

remember the Appraiser Scene in The Sopranos?? Well, that's one of our favorite scenes --

Dwight laughed so hard he nearly fell out of his seat! If you're not a Sopranos fan, the

Appraiser gets into 'some trouble' with the Mob, if you know what I mean! ha,ha,ha!

I'm sure there are some good Appraisers out there, who actually know that when the Roof is

done, the Subfloor is already in place... d'uh! But even if you have the weeniest appraiser

known to mankind, you still have to be really nice and just be prepared with your own cash to

continue on with the job. We had to carry the whole project right past the Lock-Up Stage,

when the banks usually release the First Draw after the Subfloor is done.

Thank Goodness we had sold our other house first, so that Equity Cash was in the Bank,

because that would have been a terrible situation otherwise. So now I would advise having at

least $100,000. on hand before you start your own build, just in case. The amount is variant

on the size of your house, of course, and we always build big, so do the math and come up

with how much you will actually need to get yourself all the way to Lock up, and have that

money available before you start.

How Long Will It Take To Build A House? Typically, it can take from 4-5 months if a Big

Builder is Building a relatively Small Home, and up to 2 years (I know - that seems craaazy,

but it can be true, so be prepared if you're building a mansion! ha,ha!) for a very large

Custom Home.

In general, if you're Building Your Own House, add a couple of extra months from any

estimate for ease in your life, otherwise, your expected time-frame will be too tight and it

won't be pretty!

A Larger Home, especially a Custom Home, will usually take between 6 to 12 months.

Sometimes you will run into permitting delays, you can't get any Trades (if you live in an area

with extreme growth or NO growth...!). Our house took Seven full months for the actual Build,

but then you need to add another 6 weeks for the Permits to come through at the beginning.

Also, we bought the Land a good 2 years before we actually started to build on it (when you

build it yourself, you usually have to pay for the Land in Full before you can start the Dig...). I

took a fair chunk of time to design the right house for this Lot, then had it professionally

drawn.

We were in no hurry, because we wanted to be sure our other house was Sold before we

'Broke Ground', so we would never have to worry about carrying two mortgages (yikes!). Our

House Sale went through in February and we broke ground on March 4th. Good timing, no??

We went ahead and got the Permits ready when the other house was Conditionally Sold.

Keep in mind that if you're hiring a Builder (Buying a Home through a Big Builder), and it's

one of their 'stock houses' (meaning that the've built many, many houses in the same

identical style...), that the Building Time will be much shorter than if you built on your own.

Once you've built a house, it's much easier to build the same thing (or even a slight variation

of that same home) again, because now you know the 'trouble spots', and changes that could

be made to simplify the project.

When we are ready to Build again, I think we'll sell this house first, buy a smaller place that's

'an easy re-sale' in Town, buy a new Lot, then start another Build. It's important to look at

every side before you even begin to get started, so you don't create chaos in your life. The

further ahead you can plan, the better off you'll be.

In case you're wondering, 'an easy re-sale' is a house that is gorgeous but not too big and

not too expensive. Big and Expensive happens to be my favorite kind of house, but not for a

quick sale... and it needs to be in a really good location, preferably close to Schools and

Shopping so it will appeal to young families. Also, I always choose a house with 3 Bedrooms

on the same floor (Main Floor of a Bungalow or 2nd Storey of a 2 Storey home), because

that's the easiest house to sell to a young mother. And by 'young', I mean any mother with

kids at home that she still needs to wake up in the morning! ha,ha!

And, if you're really intuitive,this is already a plan I want to put into action, so I just have to

convince Dwight that it's time to put this house on the market, since it can easily take a year

to sell a really big house...sometimes they just fly off the market, but I want to be prepared!

Let me know if you're interested in our gorgeous home! We'll miss it terribly, but I can always

build another, right??

Hire a Builder: If the thought of having a few hundred Grand just sitting in a bank somewhere

makes you feel faint, you should definitely consider Hiring a Builder. Quite often they will

carry you through to the end of the Build with $20,000. down. Some really big builders will let

you get in with waaaay less -- sometimes as little as $500. down. Good to really check

around to see what you can get that's in your price range.

Always keep in mind that the more Custom your house is, the more you will have to pay up-

front and again at the end. Makes sense, but sometimes that's forgotten.

Hire a Project Manager: I don't know how you would Build a house on your own if you were

both working in a Nine-to-Five job -- I'm thinking it would be next to impossible. I don't know

how many times Dwight had to leave what he was working on to come out to the house to

deal with one problem or another. And if he wasn't available, or it was one of my areas, I

would come out. Since Dwight is a General Contractor (as well as a Heating & Air

Conditioning Specialist), he was able to correct any problems to prevent delays rather than

having to bring in all sorts of other people.

Hiring a Project Manager for your Build is less expensive in the long run (as opposed to a

regular Builder), but you will have to have your money in order first, as you would if you were

building all by yourself. You can always start out on your own, and bring in someone when

and if you need them, too. Find a General Contractor before you get started who would agree

to those terms so you don't find yourself stuck at a crucial stage (and, yes, they're all crucial

stages!).

How to Find Land This is key, since it can often be difficult to find land in the city that does

not belong exclusively to a Developer or Builder, which means that if you buy their land, you

have to hire their Builders to build your house. What you want to look out for is a B.Y.O.B. Lot

(this does not mean 'Bring Your Own Booze' to the work site!). This means Bring Your Own

Builder. That's you! It also means that you could contract the building out to an Independent

Builder, who might build for significantly less than a big name builder.

Check the Internet, your local real estate papers, bargain papers (there's usually one in every

city -- the one in Calgary is the Bargain Finder ), newspapers, etc., to see if you can find a

B.Y.O.B. (Bring Your Own Builder) Lot or a good Builder. It's always a good idea to check out

local Builders, first, in case they can build what you want for basically the same a what it

would cost you to build on your own. If the difference is less than $50,000, it's probably better

to buy through a Builder, whether Independent or a 'Big Name' company. You may be able to

do part of the work, provided your skill level is adequate, which will knock the price back even

further. Everything is food for thought when you're looking at an investment in your time and

money of this magnitude. You're less likely to 'get in too deep' cash-wise, too.

You can always hire someone else this time around, then really watch to see how it works

and try it yourself on the next house! You'll make a pile of money, either way, especially if

you buy in an area with some positive growth potential! Remember, Real Estate rarely goes

down in value, so it's a good investment. You'll have a nice place to live and when you sell it

down the road, you'll make a bigger profit than most people make in the Stock Market. Plus,

if the tax laws permit it, you won't have to pay taxes on the money you make from the spread

(how much you paid for your house and how much it sells for). There's generally a time

frame involved in this, so check with your accountant to get the low down for your area.

How to Design Your Home: The land you buy will determine what you can build, for the most

part. If you're in the city, the neighbourhood will be pre-planned, and the Developer you

bought the lot from will let you know what's allowed. Many new neighbourhoods are 'Front-

car Garage' houses. Some will allow for a detached garage, or a garage attached at the

back. Make sure you're comfortable with the restrictions that come with the lot before you

buy it. If your lot is smaller (as most in-town lots are!), you'll probably have a basic shape that

you can start with (say, a long rectangle, or a square box) - check out show homes for ideas

(of course, you can not copy someone else's house, but you can gather ideas for features

you like to see what you want to incorporate into your own house.

Once you've got the basic shape in mind, sit down with some graph paper and start playing

around with what you want in the house. Three bedrooms on the main floor, four bathrooms

(because you really love prunes!), large island in kitchen - you get the idea. The other thing

that I highly recommend is the Internet (surprise, surprise!). There's a ton of information out

there, and there is an incredible selection of house plans on the Net. They're waaay cheaper

than having an Architect draw your own designs, and they will often accommodate them to

suit your needs (small fee involved, but worth it if you really, really need a sauna off the

Master!). The general cost of having your own House Plans drawn up is anywhere from

$2,500.00 and up, depending on the house and the Architect. Perhaps you'd even like to

build a Walk-Out Bungalow like ours!

Extra Costs of the Land: This applies primarily to buying an acreage, since you'll need to add

about $25,000 into your budget to get the services in, but it's good to make sure that there

are no hidden costs or amenities that you're required to pay for your lot. We really scored

and found an acreage in an Estate Area that already has the services to the lot line ?-

WooHoo! That's a huge savings! (I'll put that money towards the development of the Garden

Room!)

Every so often you may come across a Beautiful Piece of Land and the Developer will carry

the price of the Land with a small Down-payment until you're finished the entire Build and

your Mortgage Money has actually come through, then you pay the Developer for the Land at

the end. This is very, very rare. More often than not, you may be able to hold the Lot with a

Down-payment until you are ready to Build, but you will have to Pay for the Land in its'

entirety before you can go and even get the Permits to Build. I know, I know ... it's a Big

Money Game, but it can be done if you're really determined. All money-related info is much

better to know in advance than to discover it later and lose your shirt... you want to make

money on a build, not lose it, right?!

After Thought: Well, we're done the house, now, and Money was the most difficult part of the

job. When you are building on your own, you actually seem to need a 3:1 ratio of Cash to

Home. What that basically means is that if you want to borrow $100,000., your new home

should be worth $300,000.

We were amazed at how little the Appraiser actually knew about the Building Process. We

were also shocked at the tiny increments of cash that we got from the Bank. It was not done

the way that you're generally told it will happen -- in three main sections -- Subfloor, Lock-Up

and Completion.

We were given 10% here, and 5% there... it was a long and arduous process, and one we

will try our best to avoid in any future Build. We'll set up a large Line of Credit based on the

Equity of our House and go as far as we can before we attempt to get another Builder's

Loan.

This is not to say that Builder's Loans are never good -- not by a long shot. They can be the

difference between being able to Build the House or Not, so definitely pursue that avenue if

you need to... you might get lucky and find a really great Appraiser who does know the

building process.... they must be out there!

The other very difficult part of the Build was with the First Finishing Carpenter. We found him

through a reliable source and followed through the regular way. Everything looked like it was

going to go smoothly until he started fighting with me about how the Kitchen Island was to be

built. He did his best to pit Dwight and I against one another -- I would give him the Drawing

of how the Island was to be built and he would go to Dwight to say it had to be changed.

(Little women don't know 'nothin' about buildin'... ugh! What a yuck!)

Everytime I drove up to the new house and saw his truck I would feel physicaly ill -- not a

good sign!

I can't tell you how many fights this caused... Finally, I said to Dwight that we needed to band

together against this guy and stop letting him waste time (hours and hours at $45.00/hour...)

by pitting us against one another. Dwight agreed and we went back in with a united stand.

Much better.

Even after that, this guy couldn't stay on track with the work that had to be done before we

could move in, so after I found another carpenter (no matter how annoying or slow someone

can be, always wait 'til you have a replacement before you make any serious changes...I

think that might go for some marriages, too! ha,ha!), I came into the house, nothing had been

done, and I fired him. He stayed to finish out the day, and Dwight said he had never seen this

carpenter work so hard! Now, that's funny!

It's incredible, really, how something in a relatively short time period of your life can cause so

much upset -- this part was very difficult to get through, but we got through it and now it

makes for a good story!

Our new Carpenter, Trevor Campbell, came in and saved the day... he fixed all of the other

guy's many mistakes and finished everything that needed to be done before we could move

into the house. AND, he never fights with us! It's a miracle! Trevor is a breeze to work with,

so we can get the work done quickly and easily -- perfect! We would recommend Trevor to

anyone planning any type of Carpentry Work for their home.

As an aside, this is generally good advice for any building project -- or anything else that is a

huge thing in your lives -- stick together as a unit to get the job done. Any item can be

compromised on -- there is never any one item that should cause so much grief that the

whole job comes to a halt. Better to resolve to like it (or not look at it!) than to waste time and

money (and potentially your relationship...) fighting over any aspect of the job.

This is not to say that you shouldn't try to persuade your partner in the right direction if you

know they are headed down the wrong path, but do it gently like you're steering a car around

a tight bend -- go slowly and carefully so you don't run the whole thing off into the ditch!

The most important thing is to Keep the Job Going and Get the Job Done. Then Hire a Mover

and Move on in -- and hopefully, Up!

Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in

Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her

Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun

information to help anyone become Financially Successful, Slim, Trim, and Happy... what

more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca,

http://www.theScottishDiet.com