With £55k, is it possible to get a plot of land and build a single bedroom bungalow within M25?

Question

I would do most of the building work myself.
And thats about the mortgage I could get with my tiny salary. My options at the moment are, living in a garage or a box of a studio flat if I get a mortgage trough a broker. Any other VALID ideas towards buying a first time property are more than welcome.

Mr. Firsttimebuyer Workingonminimumpay

Answer 1

Computer says NO.

Answer 2

Its a shame you didant live in Halifax as the guy that was going to buy my land pulled out and bought a house grrrr.
The land has planning permission for two fialry large houses and they each inlcude a garage on the first floor.
Will have its own private drive leading up to the houses, have used the land for over 40 years but dont have the deeds as the woman i bought the other bit of land from coudlant find the deeds.
Also dont have the money to build them, would need someone who could pay for building the houses and i would be willing to take a share of the profit.
If anyone is intersted then email me [e-mail]

Ps the land registry said if i develope the land i will be given the deeds so thats why i wanted to build the houses to automaticaly get the deeds.
Plus i need some money as god neevr smiles on me ever.
Houses would be worth upto 250 grand each as there would be only two on a fairly large plot.

Answer 3

........Absolutely no chance. A small plot of land to build a bungalow or house would cost, minimum £100K. Then you would have the building costs, budget for around £120 per sq/Metre. There wouldn't be much difference between building a house or bungalow just another 2.4 metre of brick work.
About the only thing you can do is to find a property that you can afford, if that is to be a studio flat, then so be it. At least you will be on the property ladder.
Sometimes its possible to buy into housing association properties. Ask various councils in the areas you are looking to live in if they know of any. Good luck

Answer 4

I think you can do anything if you put your mind to it!! I'm in a similar situation. I can only get 65k until I finish my studies and settle into a job, but I can't wait!

What about a house share whereby you and a couple of good friends pool your resources and buy a bigger property? Or some mortgage companies let your parents act as a guarantee and you will be able to borrow more?

I think it's a joke trying to get on the property ladder. Most of the places I can afford are in dodgy areas and I really don't fancy living there. I don't mind a small property to start off with, it's just the neighbourhood!

Discuss your options with a professional who can give you clear advice. I think you can do it if you really put your mind to it. You just need a VERY tight budget and a lot of willing friends to offer free labour! Good luck with it all!

Some friends of my parents have just bought a massive, massive piece of land in Prestwich for less than £45k. The land is big enough to build a whole estate on, I've seen it!!

Answer 5

no, it would not, sorry.

You can get share mortgages where you buy with other people but thats like going into business with friends...not good really.

To be honest, if you are on a small salary you can't buy in London. Have you though about buy to let in a university town. You could buy in Newcstle ( example), rent it out. The rent would pay your mortgage. You would still live in rented in London but at least you're on the property ladder somewhere, and someone is paying a mortgage for you. In a couple of years you might be a landlord tychoon rather than struggling with one £55K mortgage.

Rather than feel like you are being forced down this route, you might find it makes you.

Tough I know.

Answer 6

No, but there are several variations on your theme.
The most obvious one that springs to mind is look at the best transport links to where you work and see how far down the line you need to go to get something you can afford. You need to consider times, not distances for this as several lines offer fast trains to london.
If you are able to do building work you might pick up something in a rough state and get on the ladder more cheaply that way, but you would need a bigger deposit for this sort of property.
How about getting a 2 bed place and renting the 2nd bedroom to a student?

Answer 7

In short, no.

The long answer is how much would that property be worth? Probably at least £200,000. Say it cost around £65,000 to build with all self build labour input (and even that's probably an unachievably low figure) then you are spending out £65+55k = £120,000 to get something worth £200,000. The seller of land with planning permission knows all this, or will have been advised by her agent, and would thus value her land higher. She will want at least around £100,000+ which would give you £165,000 development cost and a "fair" developers profit of 20%. In other words you are competing in a market with other developers who are prepared to settle for 20% return so naturally the land will be priced for them.

The only chance of getting plot for £55k would be to buy one without planning permission. This is very risky. It can take many years to get planning and you likely won't get it at all, so this kind of "investment" land is not applicable to your situation.

Answer 8

I'd be very surprised if you could get plot big enough for a dwelling at that price within the M25, but property ownership isn't everything. Purchase prices are at a high in relation to rents at present, I would suggest looking at the market again in 2-3 years time, and focusing on maximising your income and savings in the meantime.

Answer 9

Unlikely, average building costs ar 70k and hats before buying the land, you may have a chance in the outer hebrides!!!

Answer 10

unless you plan on building on the hard shoulder then no..... if you did then parking would never be a problem though, isn't the M25 one big car park? (lol)

Answer 11

Why not try a house boat, there are plenty of moorings in the area