The decision to undertake a self-build project is undoubtedly a major one, especially if you are building for your business. Funding such a project may certainly seem daunting at first, especially if you have no previous experience. Here are a few financing options if you are considering undertaking a self-build project.
Get a Loan
Probably the easiest option, and the one which will be used by most people. Companies like Saffron Building Society offer Self Build Mortgages which are specifically geared towards self-build projects. These loans, rather than giving you the money in one go, release the funds you need in instalments as the project develops, so you do not pay interest on money you are not using.
This is useful if you are running a business, as it means you do not have to worry about large loan repayments getting in the way of business investments, but you do need to make a fairly substantial deposit.
Use Your Savings/Capital
For an expensive self-build project this will not be a viable option for everyone, but if you do have savings or capital which you are willing to use, it will most likely save you a decent amount of money on loan repayments.
With house prices having risen 306% over 20 years, and showing no signs of slowing, your investment could well make you money once the project is completed. If you do not have enough of your own money to cover the entire project, you could use a combination of savings/capital and a loan so that you acquire less debt.
Sell Your Assets
This final option should only be used by those who have assets which they can afford to give up. If your business has assets which are redundant or which it can function without, selling them might be the best way to raise funds for the self-build project.
This could range from a car to a building, and the more you have the better your chances of funding your project. Something you should factor into this decision is how much your-self build project will benefit the business itself, and whether it will outvalue the assets you are willing to give up.
These are just some of the ways you can finance a self-build project, whether for personal or business use. Any of these options could be used in conjunction with one another, so be creative and calculate which would be the best/most viable for your finances.
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