Many years’ experience in property marketing – especially of residential property – has shown that those planning to build their own homes frequently go through a difficult time financially in the early stages because they find themselves paying two bonds, two service charges and two sets of taxes simultaneously on the existing home which has not yet been sold and on the new home which is now being built.
“This is so obvious a pitfall awaiting the unwary that it is surprising how so many people fail to see it and fall into it. However, this does happen quite regularly,” said Bill Rawson, Chairman of the Rawson Property Group.
In his experience, he said, the average under-resourced home seller should sell his home and move into reasonably priced rental accommodation before giving the go-ahead to his builder.
The big advantage of renting, said Rawson, is that if the lease is properly worded it can be kept flexible. If then the builder takes longer because he is delayed by rain, strikes, the insolvency of a sub-contractor or for whatever reason, the new owner can stay on in his rented premises. Similarly, the tenant can cancel the lease, giving 20 working days’ notice (under the Consumer Protection Act) if his home becomes habitable earlier than expected.
“In the vast majority of cases,” said Rawson, “there will be hold ups in the building of your new home and/or the selling of the home you are currently living in — especially if that home is in the upper-middle to upper price range — and it is for this reason that, before the building process begins, you need to plan ahead and avoid any unnecessary future expenses.”