Build Your Own Home For Less Than £100K

We’re not sure if you have realised but buying a house is what one would call stupidly expensive. Even the term ‘affordable housing’ has made its way into the dictionary of oxymorons. That is why so many people are now looking at options to build their own home, and with a lot of government incentives to do this, it doesn’t seem like a bad shout. However, there are a lot of misconceptions still floating around out there.

If you’re interested in going down the self-build route then you’ve watched Grand Designs, which has probably put you off the whole idea because, well, it makes it look complex and expensive. But this isn’t always the case or, should we say, it doesn’t have to be.

In fact, with clever design and management, you can build an inexpensive house without too much sweat, and here’s how:

Simplicity Is Key

The thing that ramps up the cost of a home is complex plans or fussy needs. It is pretty simple really; the more complicated your plan the more expensive your home. Why? Well, one of the biggest costs of any home is the labour. There are no two ways to put it, this accounts for a large chunk of your budget, so help them out by scrutinising as much of the plans as possible and considering how you can simplify.

 

Method To The Madness

How cheap your construction depends on how carefully your measure up the different decisions against one another. The professionals at http://www.flippinghouses101.net explain that it isn’t all about going with the cheapest materials on offer, but rather the ones that offer the best value. That means taking into consideration everything from durability to lifespan, maintenance to upkeep. That’s where your long-term plan comes in and knowing how long you plan on living here. Higher investment now may mean lower investment in the future.

Labour of Love

The cost of using a main contractor can be anywhere between 18% to 38% more expensive than if you were to go it alone with the help of just a few sub-contractors. Yeah, the cost of labour can account for a huge portion of your budget, so if you can do a lot of the construction efforts yourself then you should, with help from these subbies according to http://www.self-build.co.uk/. Of course, you may find a contractor that will be able to do you a deal, or save you a small fortune thanks to their relationships with suppliers and tradespeople, so dig around first.

Space, The Final Frontier

The needs for lots of small rooms is no longer necessary because houses have become much more efficient. As such, the current trend is big, open living spaces, or broken living spaces. They feel roomy, natural light can flood in and socialising is more encouraged. But with this space comes an added cost because of the extra structure needed, structure like steels. Steel is expensive. As such, you should consider adding columns to reduce these extra structural costs. With good vision, though, you can make these columns or supports as nonobstructive as possible.

5 Easy-to-Miss Signs Your Finances Need an Overhaul ASAP

Personal finance management is something that a lot of people struggle with. You would have to admit that it is not very easy sticking to healthy practices that the experts advocate, like saving more, living within a budget and spending less. However, there are times when you can tell that a financial disaster is imminent if something is not done about spending habits. Before it gets to this point, knowing the signs to look out for helps a great deal in putting your finances back on track before it is too late. Here are 5 signs that can be easily neglected, but point to the fact that your finances need an overhaul ASAP.

  • You live from One Paycheck to Another

One of the clear signs that your finances need a complete overhaul, is if you spend all your earnings before the month runs out, and have nothing to fall back on until the next pay day. It is easy to miss this sign especially if this is how you have always approached your personal finances. However, this means financial troubles for you especially in the event that something unexpected happens, like job loss.

  • You Always Over Spend

If you always overspend and cannot keep track of your expenses and where your money goes, then you are likely at that point where a conscious effort should be made at getting your finances right. It is important to know how much money goes out and comes into your account from time to time. As such, you should review your bank accounts to avoid going into youroverdraft. If this is happening particularly often, you need to understand how your overdraft works in order to come up with a plan to level out your finances.

  • You Do Not Have Any Financial Goals

At the end of the day, we all want to live comfortably and retire well. This takes mapping out goals, employing realistic strategies such as budgeting, planning constantly, reviewing spending, and forming the right habits for a secure financial future. If you find yourself struggling to survive till the next pay day such that having any long term financial goals seems like a bleak prospect, then an overhaul is needed ASAP.

  • You Do Not Have Savings

Savings are important. Whether for the rainy day or to fund a future project, it is a form of security to know that you have finances to fall on in case something unexpected or unplanned happens. Of course, not having savings may be as a result of you trying to pay up debts. However, with the right planning and expense allocation, you can have all expenses correctly handled.

  • Your Debt Keeps Accumulating

One sign that your financial situation needs serious evaluation is if you keep accumulating debt to pay off other debt. This means that a cycle has been created and without the right personal financial management strategy, you will be unable to keep up.

Is it Possible for Millennial Home Owners to get Mortgage Free?

Many millennials today are avoiding mortgages because they cherish the freedom that comes with living the “upwardly mobile” lifestyle. However, this is a dangerous path to toe.  By the time you turn 30 you might have spent £53,000 on rent. Wouldn’t you rather get on the property ladder with some of the rent as down payment?

Mortgages have been a drag for many millennials as many are worried about inability to meet up with their obligations, exorbitant interest rates and never truly getting mortgage free. With the right guidance, however, literally anyone can become mortgage free. Here are two main ways to do this:

Using your savings account

You may not know it but your savings account also holds the key to clearing your mortgage early and you don’t have to pay any extra cash. You only need to have a decent sum saved up.  This method is known as using an offset mortgage.  With this method, your savings account is linked to your mortgage account. The savings are then offset against your mortgage debt thereby reducing the mortgage amount and the interest that would have been paid on it.

You don’t lose access to your savings and you can add more money to the pot at any time to further reduce your mortgage debt.  It is important to note though that your savings pot used here will not grow. Savings account yield very little these days anyway so this shouldn’t be a deal breaker. Most big lenders offer this type of mortgage deal.

Embrace Overpayments

When you get a mortgage, you are allowed to overpay by a specific amount each year without any charges. Most of the time, this is no more than 10% of your mortgage balance. You will only be hit with an early repayment charge if you go above this limit.

So if you are able to, try to spend a bit more when researching a mortgage, and you can drastically cut down how long it will take you to become mortgage free. By increasing your mortgage by an extra £100, you can cut off 4 years of repayments from your mortgage and most importantly, save over £12,000 in interest for a £150,000 mortgage deal.  Don’t know how to squirrel away a bit more money for mortgage overpayments? Here are some tips you can work with.

With these two methods, you can become mortgage free as a millennial in little time.  You only need some level of discipline to see through any approach you elect to go with. All the financial experts are warning of how badly the millennial generation will be affected when they come to the age of retirement.

As older generations live longer, they require more money to pay for their care and this comes from the earnings of their kids and grandkids. We can expect to see more strain being put on the millennial generation throughout their working lives, so having a financial plan in place now will ensure that you’ll be able to enjoy your own retirement when it comes round.