Hi,
I've been on the house hunt for almost the past year and haven't found anything I would buy. My longheld dream has always been a strawbale home but I shelved that dream as being temporarily impossible. Yet when I investigated getting a local builder to build something within my budget just on the edge of town (brick not strawbale) I encountered some problems. The main one being my project is bespoke and small. It's not worth their time, apparently.
So I may have to owner build by default. I have no construction skills but plenty of project management. I'm great with lots of details, co-ordinating, research and organisation. I'm hoping that will count for something. I also think I'm not in a bad way financially either. I would need to get a loan for the land component but would have 100% of construction costs in about 6 months time. I am looking at rural residential land below 2.5 hectares in size, on tarred road. Thought I found the perfect block but actually I think it will require too large a deposit putting back my plans.
I plan to build what would be classed as a tiny home, a 50sqm box with a loft, shower room and kitchen in it. I am used to living in such small spaces and it's just me anyway. Over time I could turn that into a kitchen, living area and build another little box for a proper bedroom with ensuite.
So what I want to know is, is it possible to get a land loan on land of this type (in a large lot housing estate or fringe of town) with a 20% deposit? The lots I'm looking at are off town services but generally have power to the block. They are classified as rural residental lots. I can do a 30% deposit but want to reserve my cash for the build.
What are the options with OB finance? How difficult is it to get? I am confident that I can afford to pay for the build but if there was any over-run I'd hate to have an unfinished project just short of occupancy cert. So it would be handy to access to finance to ensure the project runs to completion. Any other thoughts?