Did you know that Persimmon Homes posted record profits of over half a billion pounds in 2006 (£582m to be precise)?! How do you fancy a slice of that profit?
There is a way – build the house yourself and cut out the middleman!
Now I know that might seem scary, but believe me when I say that you don’t have to be Tommy Walsh or Bill Gates to build that dream home. And you won’t have to live in a caravan for years on end either.
If you need a little more convincing, let me give you some facts and figures…
A typical project involving a land cost of £100 000 and a build cost of £100 000, once complete will be worth in the region of £350 000! That’s a £150 000 (75%) profit.
Even better, you only pay stamp duty on the land – in the example above, you would pay no stamp. If you bought the same house already constructed, the bill would be £10 500.
You can claim back all the VAT on the materials used on the build – assuming £60 000 was spent on VAT rated materials, that’s another saving of £10 500.
You can now buy off the shelf kits for your home and there are hundreds available – meaning you get exactly what you want but with a fraction of the design and build costs.
So that’s all well and good if you have thousands of pounds of spare cash in the bank, right? Actually, no – there are now mortgages that are available for up to 95% of the land purchase cost and 100% of the development costs. And they’re available in advance. And you only pay interest once you have actually borrowed the money, keeping your costs right down.
As long as you can afford it, there is no problem in remaining in your existing house until the new one is complete. No muddy fields and caravans – contrary to programmes such as “Grand Designs” (which is an excellent programme but without a bit of hardship and controversy, nobody would watch, would they?)
Jon Davies
www.holidayinyourpocket.com
