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Who self builds? : |
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There are a number of reasons why building your own
home is a popular choice for many people:
- For profit or for savings - the completed market
value of a self-build property is typically 20-30 percent
above the costs of development, meaning that self-builders
are effectively buying their property at cost price.
- To have full control over the choice of the location
and positioning of the property.
- To have greater input into the design and materials
used, room sizes, dimensions and layout. This allows
you to build house to suit a particular lifestyle, by
adding extra bathrooms, a snooker room, a bar, a larger
lounge or dining rooms etc.
- To minimise tax expenses. Stamp duty is only paid
on the land and even then only when the purchase price
for the land is over £60,000. There is no duty payable
on the cost of the build. Self-build also raises the
possibility of reclaiming the VAT spent on the project.
This is done at the end of construction and it is possible
to claim for VAT on all goods and materials that are
incorporated into the building or site, as long as they
are bought from a VAT registered supplier.
There are three main types of self-build customers:
- Those who want specialist help but also to have significant
involvement in all the key design and construction decisions,
but who won't carry out any of the work themselves.
This is the most common group of people, with the self-builder
acting as the brains of the operation.
- Those who only need finance and are willing and able
to carry out the whole project. This is more involved
and sees the self-builder act as a hands-on project
manager to liase with all third-parties and maybe even
get their hands dirty on some of the activities.
- At the other end of the scale, there are those who
only want to make a few key design and construction
decisions, leaving the day-to-day responsibility to
other parties.
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