Many would say that size is one factor to consider in almost everything. As they say, any single thing that is too little or too big will never be right. That is true also in real estate. When buying a new home, the land area or the total space of the lot is very important. This is the foundation of the entire house structure. Many other elements depend on it.Size affects the design
An interior designer or architect cannot start doing the design unless the size is given. He cannot visualize the entire structure and the placement of its parts without considering a given size. It would be useless for an architect to draw samples of designs for a mansion, but then the buyer only live on a limited space. It is same vice versa. Building a home with a sizable space can provide ample flexibility on its structure.Limitations are drawn by its size
Aside from the design itself, any renovation or extension can only be made if its size is also flexible. If the house is already structured, home builders cannot do anything about it but to adhere to its design. One common stumble block is having a limited space. This is very important especially when the family starts to grow in size. Additional rooms and storage are necessary to accommodate the need of each family member.Size provides convenience
Privacy is very important to every single person. In a family home, this can be achieved if every member has its own space wherein he can work his way for himself. This may not matter when the children are still on their school age or on their teens, but when they enter college and late adolescence, they tend to look for some space on their own. This is normal and this should also be considered.Many might opt to take smaller homes because of limited budget thinking that it would be a better option, but in the long run, this can give some struggles to the family. One thing is for sure. Your house is not only an investment, but a home where you and your family dwell.
When you decide that it is time to move, you have to make several decisions. Your first decision is probably where you are going to move and whether you are going to move into house or apartment. If you decide to move in house, you have to decide whether it is going to be a new house or you are going to buy an old house. And, if you decide to buy a new house, you will also need to decide whether you are going to build it yourself or you are going to buy it from building company. I would like to help you with your decision with presenting 3 benefits of building your own house.1.) PriceThe fact is that companies are building houses because they want to make money. They build the house for less money then they sell it to. If you decide to build your house alone, you will save the difference (profit of the building companies). Not to mention the fact that you will be able to do a lot of small work by yourself. If you have enough time, there are many small things you can do that aren’t labor intensive and don’t require expert knowledge.2.) Control over detailsAnother benefit is control over details – you will be able to build exactly the house you want. Building companies will only build average houses – you, on the other hand, will be able to discover some smaller improvements that will make your life easier when you move in.3.) KnowledgeYou will learn many useful things when building your house – one of them will probably be that you should control contractors if you want them to work correctly. In case you will be building another house (or help someone building it), you will already know some tricks and the process will be much faster and more efficient.If you believe that you are the right kind of person to build your own house and you have enough time, why shouldn’t you do it? Feeling of moving into new house you have built is just amazing.
Home building usually requires financing. And there are many options to consider when you’re planning to finance and build a home. If you have been reading my articles on financing the building or remodeling of your project, you’re aware of many of the options. Using the equity you have in other personal assets can be the easiest and sometimes the least expensive way to get money to build.If you’re in a position to fund the building of your new home without needing to go through the pain and anguish of arranging for a construction loan, you’re in great shape! There are two good ways to do this. One way is to own other real property that is not encumbered with a loan. It could be the home you’re living in now. If its equity or value exceeds the cost of the home you want to build, then you’re in business. Although it’s rare, there are some states or other authorities that may limit what you can do with your line of credit loan so you should check these laws.Another excellent option would be to use your investment portfolio as collateral. I’ve had clients who have had substantial investment accounts which included stocks, bonds, mutual funds, real estate funds, etc. and in many cases you can borrow against these. Always check with your investment manager before doing this. This article is not making recommendations, but pointing out options for you to consider. What is successful for others may not work for you.Construction loans are complicated beasts. And they are not cheap to acquire either. So using one of these two strategies instead would make life a lot easier for you. The time and money you save can be used for better purposes, put directly into your building process. You might save as much as 2 to 4 months! The following outline will give you a good idea of the advantages:
There is little or no qualifying for this money.
The construction project does not have to meet any standards to access this money as it is not even considered when arranging for this money.
It is inexpensive to set up these types of loans.
The paperwork to put these loans in place is minimal compared to construction loans.
Once in place, access to your money is a simple process.
You maintain control over the money and its disbursement.
There is no down payment required as there is no money borrowed directly against the project.
No appraisal is required for the same reason. However, an appraisal of the land, as well as the ultimate finished product, is advisable.
There is no cost to manage the withdrawals of funds.
You’ll need to be sure the value of your assets is substantially greater than the funds needed for your construction project or you may need to add additional money to the project.
The money borrowed against investment assets can jeopardize any assets that fluctuate in value. It is best to use stable investments as collateral.
Often the money obtained this way should be used only for a short term. Fortunately, this is normally the case with construction loans.
Depending upon how you go about building, the builder may want the funds placed with a construction money management escrow fund to ensure that the funds are available when needed (this is sometimes called a “builders control” fund.)
Funds taken this way will incur interest and may also require monthly payments.
If these options work for you, and your advisors agree, it’s a great way to finance the building of your new home. Any time you can reduce costs, time, hassles and confusion you’ll be better off. This money is only needed for a short time as once the home is built, you’ll be paying back these asset backed loans with a new mortgage.One final thought. Even though there will be no construction lender demanding it, all the other normal pre-construction steps should be taken. You’ll need to work with builders, know building costs, evaluate time frames, get your appraisals, and line up construction management, etc. Also, be sure to pre-determine the amount of mortgage you can qualify for so it’s not an issue when it comes time to pay back what you borrowed.