Moonbadger's posterous

If you ask most people they will tell you at some point in their life they’ve always thought about building their own home. Unfortunately, most of us although we may dream about doing it, will never actually get round to doing it. 

So what do you need to build your own house…

Budget – Well to start with the first thing you’re going to need is a small pile of cash. Building houses isn’t cheap (otherwise everyone would do it). The cost of a decent plot of land can be anywhere from £50,000 - £100,000. After the land you’ll also need money to pay for lawyers, construction materials, builders, other trade workers and tools.

Planning – Before you can even start thinking about getting the foundations underway you need to go through a number of strict planning phases. The land you’re going to purchase first needs to have planning permission, once you’ve arranged for that you will need to provide plans to the appropriate authority to ensure that your proposed build meets local and national planning regulations.

Design – Art and architecture go hand in hand, and if it’s going to be your dream home then design is key to the whole situation. Again money is really the key to this, if you have enough resources then design is really up to you, your vision and the skill of your architect. However, if you’re unable to go down the Grand Designs route then you can’t really go wrong with a 2up-2down.

Insurance – Most of us have some sort of building insurance; this is broadly split into two sections 1)Building coverage 2)Contents insurance. When you start building your dream home it’s important to make sure that the build is covered every step of the way. Once you’ve completed the build you will still need to cover the building, but as you start to fill the contents of your house you will also need to insure your items.  

As you wander through the world of work you tend to find that the longer you get in the tooth the more you begin to worry about 'life after work'. For some this isn't really an issue, as they've been fortunate enough to build up a substantial nest egg through annuities and pension funds, but for some the mere prospect of living without a month-on-month paycheque is a daunting prospect. 

So what do you need to do and what do you need to think about as you approach your twilight years?

• Mortgages - most of us will have a mortgage and ensuring that you have a continual income to pay this off is of paramount importance. Not only does a house/flat provide you with warmth and a place to live, but it's also a potential source of revenue and equity should you come to need it later in life.
• Pension - pensions come in all shapes and sizes, some of which can be incredibly complicated, which is why a lot of people are more than a little concerned about investing in them. Another concern has always been the security of these pensions, as horror stories abound with tales of people losing the lot, after certain companies went into administration.
• Life insurance for the over 50's - The last thing you want is to leave your loved ones in a sea of debt, and in particular having had to sit through a funeral funded by state, it's not a position I would ever want to leave to my family. Ensuring that you have adequate insurance can end up paying dividends in the future, especially if your entitled to payouts due to ill health or payment protections for your mortgage.
• Bonds, ISA's and nest eggs - most people tend to mix and match nowadays, with the majority of the population squirreling their money away in a variety of different pots and plans, such as premium bonds, ISA's, property equity and savings accounts.

Remember it is essential that you research and understand the full extent of what you are signing up before you put pen to paper. Mortgage, insurance policies and pension all come with a heap of clauses and small print, each of which could have a significant bearing upon your policy. Remember if you're in any doubt seek independent financial advice on all your available options.