House Building

Hi all,

I am considering purchasing land and building a house. My sister and I have been approved for the land loan and are about to start the planning process (house plans, hiring a contractor etc.) Before we get too far down the road I wanted to see if anyone had any tips for managing the debt and what helped them keep their finances under control during the process.

Thanks a bunch.

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  • One of my bucket list items is to do exactly what you're doing. Build my own home. I look forward to living vicariously through you! Wish I had some better advice, but I'm guessing there's someone in the YNAB community that's been down this road before!

  • I'm currently doing just that. We will start the build in about a month. I've created a budget in YNAB to keep track of all of our expenses. I'm still tweaking the budget as we're getting closer and changing the set up as it evolves. Currently I have "bank accounts" set up for the loan amount and another "bank account" set up for our HELOC. In the actual budget I've broken it down into categories - Light Fixtures (fixtures only not to include the electrician cost), Plumbing Fixtures (again, only the fixtures, not what the plumber will charge), Hard Site Costs, Subcontractors, Credit Card Payment to the HELOC, Management Fees, and Details. Have you since set up a budget for your build? I'd love to know what you've done as well.

    Light Fixtures 
    - Exterior Spot Lights
    - Exterior Back Porch Light
    - Exterior Kitchen Porch Light

    Plumbing Fixtures
    - Kitchen - Sink
    - Kitchen - Faucet
    - Kitchen - Soap Dispenser

    Hard Site Costs
    - Well Pump and Pressure Tank
    - 30 Yard Dumpster
    - Driveway
    - Excavation
    - Septic

    - Masonry
    - Siding & Gutters
    - Framing Labor
    - Stairs
    - Doors
    - Windows

    Management Fees
    - Bonds
    - Closing Costs
    - Architect
    - Project Manager
    - Permits

    - Closet Shelving
    - Island Bar Stools


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      • Khaki_Storm.1
      • 1 yr ago
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      Slate Gray Motherboard Congrats new homeowner! Please learn all you can about your well and septic! I've made some other posts on septic, I'll not repeat that here. For well, I've been reading everything has to offer.

  • I have not been down this road, but I consume decorating blogs and magazines as though they might go away any minute. The number one piece of advice that I have seen EVERYWHERE is to make as many decisions as you can ahead of time and not to deviate from them. A lot of people wind up adding a bunch of cost to the project as they get into it and go, "Oh but wait, what if we did/bought/built ...." and that winds up necessitating a ton of time on the part of contractors. As much as you can, get all the way to the finishes before you start and you'll have a smooth build. 

    I've actually seen this in my own house, which was a flip--the flipper clearly made a bunch of decisions on the fly that wound up costing time and energy. For example, they had to re-do the master bedroom closets three times between when I contracted the house and when I closed, because there wasn't a clear instruction of "Go to Home Depot. Buy this kind of shelving that is $1.50 a linear foot. Install two 60" shelves at 36" and 72" in the big closet, and one 24" shelf in the small closet at 60". " Instead they had to rip it out twice, which cost labor and materials each time. 

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