Page 10

Your Build - Spring 2018

Financing your build BuildStore fund How to yourself-build If you need help funding your self-build, BuildStore’s Rachel Pyne explains how to work out your budget, understand your borrowing options, and be best Organising your funding may Season 2018 prepared when applying for funding not be the most exciting part of your homebuilding project, but it’s one of the most important. Before you get carried away with the design, build system and materials, it’s important to know how you are going to fund the build, and how much you have to spend. To work out your budget, you need to assess how much money/savings you already have, as well as the amount of equity in your existing property, and then calculate how much you can afford to borrow. The total fi gure should be the very maximum you spend on the project. How much you can borrow depends on your individual fi nancial circumstances. Just like with any mortgage, lenders look at your income and outgoings to calculate how much they are willing to lend. A standard arrears stage payment mortgage will typically let you borrow up to 75% of your plot and build costs, while with BuildStore’s exclusive products, you can borrow up to 85% in arrears and 95% in advance. If you already own your plot, you could borrow up to 100% of your build costs. When calculating how much your new home will cost, you must include the plot purchase price (if applicable), estimated build costs, associated fees, plus a 10-20% contingency. Cashfl ow is key to any homebuilding project. It’s important you have the cash you need, when you need it, to pay your tradespeople and suppliers – whether that’s monthly, weekly or daily. The availability of your borrowed funds must be a factor when choosing your borrowing solution. wh en you need it, t o pa yIt’ s im porta nt you hav e th e ca sh you need, t ra despeople a nd su ppli ers 10 Spring 2018


Your Build - Spring 2018
To see the actual publication please follow the link above