How much can you expect to save working and building your own home?

Ask this question to a number of builders and you’re likely to get very different results and many varying answers with different price amounts.

This is question that many people have though as building a new house is one of the largest amounts of money most people will spend, besides of course just buying a new house that is already built.

Firstly though why would you consider building your own place instead of just buying a new one? This comes down to a question of your finances and what can you afford. Of course if money is no issue and you have an abundance of wealth we’d suggest not going through all the obstacles that are almost certainly going to occur. There’s a reason why builders do make good money when building new places and one of the reasons is they get paid well because they are pretty much professional problem solvers. Even with the best possible planning and organisation you are bound to run into many unexpected problems. This raises the next question.
Is it worth the headache of organizing and going through all the drama that comes along with a new build?

This depends. Realize that you may likely save a considerable amount of money if you do build your own place, that is if you do take into consideration the correct the amount of time for the build and stay within the budget.

To do this you are going to need to be very proficient in the following skills.

Great management skills

If you think you can organize all the tradesmen that are required to build a new home from start to finish such as electricians, plumbers, carpenters etc you will save a considerable amount of money. Organizing the overall management of a build from start to finish will save you the cost of the role of the person who is assigned to oversee all the tradesmen who are required to take on the build. It’s important to note that this role rarely requires any physical labour and is more of a finger pointing role. In saying that it’s most likely at some point on the project you will be expected to work physically for one reason or another.

Taking this managerial role on you will probably save anywhere in the vicinity of between fifteen to twenty five percent. When you consider a new build may cost in total of one hundred thousand dollars saving the average of the above percentage you should save around twenty thousand dollars.

What if you were to complete the work of the trades people

Firstly if you are going to do any work yourself you must make sure that you take care of your personal safety first. One of the reasons that trades people get paid well is because their jobs are dangerous and do involve an element of risk.
If somehow you were able to complete all the work from the tradespeople this would save you considerably more than just taking on the management role. Building your own place from dirt to door knob would most likely save you around forty to sixty percent of the total builds overall cost. To put this into perspective you would be looking at a saving of one hundred and fifty thousand dollars if your new build was estimated at three hundred thousand dollars.

Seriously though the chances of you being able to complete all the job of the tradespeople is highly unlikely and even if you were able to learn and complete all the skills it would definitely take you a considerably more amount of time.

Wrapping up

A new build is not something that should be taken lightly. It’s a very serious lengthy task, especially the physical side of doing to the labour. Even in taking on the managerial role don’t expect to be able to hold down a normal forty hour week and still be able to oversee the whole build.

 

David Jackson

David is a personal finance expert, a professional male model, and an entertainment writer.