Deciding to say "no" to a self build opportunity

[maison d'etre]

Hello,

A plot came up for sale near us a couple of months ago, with PP for a large house. The area is a small settlement about 2 miles from the town in which we live. It's about 1/3 of an acre plot, has a disused outbuilding on it, an electricity pylon and cable running through it, but it is a peaceful setting and it has some mature trees (although they are conifers). We viewed the plot, liked the idea of the project but were then told the plot had sold. It is now back on the market. I was initially quite excited, and we have expressed an interest and started the process of putting our house on the market.

However, we're now planning to call the agent tomorrow and say we're not going to go through with it. There's plenty to like, but the PP is for a house we would never build if we had a blank canvas. I appreciate plans can be changed, but the reserved matters went through a few iterations before they approved a fairly generic style of house, so the extent to which we could alter the design is a complete unknown. Also, the costs are just scaring us off. 500k plot, plus a 285sqm house which we would want to do to a nice specification, plus double garage, plus preparing the site with demolition and relocating power lines, plus fees for all sorts of people, plus SDLT, plus renting another house for a good while...

I've really struggled with the decision. On the one hand, we want to do a house that's how we want it, and this presents a pretty good option for doing that, while our children are still young enough to enjoy the result. On the other, I don't want to be the person everyone tries to bleed dry for a couple of years, be mortgaged up to the eyeballs for the rest of our working lives, or have to keep compromising on standard of finish or specification because we can't afford it, but need to finish the build, so can't wait until we can afford it. We don't relish the thought of spending a load on rent, or subjecting our children to a worse house than the one they live in now for a couple of years. There's also the stress and reduction in time with the children when we inevitably have to spend time on "house stuff".

Apologies for the big moan - I love the idea of a self build, and I feel like a failure for walking away from an opportunity to do it. If this is my response to the reality though, is it just not for me? Or do I need to spend more time trying to do it in a way that doesn't start with spending half a million quid?!

[NSS]

Sounds to me like you're making the right decision. There'll be other opportunities, you just have to wait for the right one, or at least the one that gives you a better feeling about achieving your goals. 

[bmj1]

It's going to cost a lot more than half a million quid for a 285 sq meter house to a high spec.

 

And the utilities are really gouging on pricing works these days.

 

This might not be the typical buildhub reply, but it sounds like one to let go.

[Indy]

Building a 285sq m house plus double garage will easily mean spending between £600k and £900k for a mid level/good quality finish without going over the top. Add in the professional fees/rental/SDLT and other related costs - you could be touching £1m on top of the £500k plot purchase price. 

Edited 10 hours ago by Indy

[maison d'etre]

Thanks for the replies. I should explain that the mention of £0.5million was referring to the plot price. I was assuming £2500+/sqm for the build cost.

 

This raises another issue, which is that I feel like I need to have done more homework. For example, when £/sqm rough numbers are given, I don’t know whether that is intended to roughly encompass all the costs of the build, or whether you then add on things like utility connections, site security, etc.

[bmj1]

You need a more detailed budget for your project, because factors can vary significantly site to site.

 

It is also massively dependant on your spec and level of involvement. 

 

Lastly, don't forget professional fees

[Gone West]

I think it is fairly straightforward, if in doubt, don't do it.

[ProDave]

I wanted to do a self build when I was young, but then I lived in the SE of England (where I suspect @maison d'etre lives judging by plot price)  but it was never possible.  The very few plots that came up for sale had a plot price equal to a ready build house.  So were not for someone wanting to self build an ordinary house.

 

It was only when we moved to the Highlands that plot prices were sensible (and a LOT more available) that I got to realise that dream.

[ToughButterCup]

10 hours ago, maison d'etre said:

....I love the idea of a self build, and I feel like a failure for walking away from an opportunity to do it. ....

 

No, you aren't. Don't confuse disappointment with failure.

The one thing you can't do is un-know the idea that's walking hobnail  round inside your head ( and will do for a long time yet) . Nobody can take the idea away from you. Not even you.

Our place was built 35 years after the initial intention to build took hold of us - a mere 10 of those years actually building the fabric of the place. 

ie. a 25 year wait, a 25 year ruminate, a 25 year marinade, a 25 year itch

 

So you are NOT  a failure- yet.

Plan.

[Kelvin]

3 hours ago, maison d'etre said:

Thanks for the replies. I should explain that the mention of £0.5million was referring to the plot price. I was assuming £2500+/sqm for the build cost.

 

This raises another issue, which is that I feel like I need to have done more homework. For example, when £/sqm rough numbers are given, I don’t know whether that is intended to roughly encompass all the costs of the build, or whether you then add on things like utility connections, site security, etc.

Utility costs can vary so widely. Our first estimate for an electricity supply was £26,500 and the final cost was £450. You need to include that in your final cost/m2 as otherwise you’re doing a bit of man maths. I did set separate budgets for each element including utilities. Had we not been able to get the electricity supply estimate down from £26500 we might not have gone ahead for example. The second estimate after I challenged it was £5000. 

[Kelvin]

We looked at two plots before buying this one. The first plot was in England and we took that quite far before pulling out and our reason was simply a gut feeling that it wasn’t the right plot for us. It was hard to put our finger on why other than it didn’t feel right. We then looked at another plot this time in Scotland. Had an acre of land, planning permission for a modern steading style house and it came with an enormous old mill, cottage, and workshop all as a single large barn. I loved it other half hated it so that was also a no. The same day, and quite by accident, we happened across another plot just going onto the market (they were literally putting the sign up) We stepped over the burn and onto the plot (which was a very sloped field covered in gorse) and we both instantly said this is it. Offer in the same day.  
 

My general approach is if there’s some doubt about something then you don’t do it until you can address that.