You don’t need to have money overflowing from your pockets to build your own house. You might find that having a pot of cash at your disposal isn’t the end-all and be-all when you have many other options. The best way to think of it is, a project that can fund itself. Many financial institutions would love to be involved in a project such as property development if you can show them that it will be worth their while.
Let’s take a look at three distinct options that you can turn to.
Selling a Property
Man’s thirst for leverage is strong! This is what many great economists have touted for years as the need for liquidity has been driving the economy forward. This could apply to your project too, as selling an asset could be the calling for your new build. Selling a home to build a home doesn’t make sense right off the cuff. But, if you think about it, selling a home would give you all the financial backing you need. If your home is worth hundreds of thousands of dollars, you could use that cash injection to fund your project without needing to borrow money. However, you don’t need to sell it and then love on the street. You can sell your home piece by piece, with a part-exchange scheme. The home will be divided into chunks such as a home being worth $250,000 being split into $50,000 portions. The bank or financial institution would give you $50,000 every other month and your home would slowly switch hands.
Brokers Are Helpful
Another way to finance a new home build is to use a mortgage broker near me. Rather than find a mortgage for your new home, it’s best to let someone else do the searching on your behalf. It’s going to take a long time for a mortgage to come your way that is tolerable in more than just name. With the skills of a broker, they can find you an adequate self-build mortgage that is going to come from an institution that is flexible. They don’t go to your usual top three or top five banks. They will go to various companies that they have contacts in, and look for a mortgage that will suit your new build.
Dip Into an ISA
We all know what ISAs do. They provide us with a large cash lump sum which we can take out when we are ready or meet the contract requirements. One of the things we should consider using them for, are projects that could fund our retirement. Don’t think of the ISA money as your retirement but rather what it could pay for, to then, make into a retirement funder. A brand new home, that is stylish, strong, and practical, is just that project.
There are so many ways to fund a self-build home. These are just three of the ones which we found. Does one of them speak to you or have you found another way?