Deal Direct with Builders: Don't Use Mortgages!

jane5

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Mar 12, 2009
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In the 1990's my parents moved to the country and built a new house.

They bought the plot of land for cash, and then hired some builders to build the house.

They paid the builder direct in instalments, as the work was completed, at the price he asked, over the time it took to build the house.

There was an outstanding amount owed at the end, which they and the builder agreed they would pay off monthly for a couple years. No interest payments, no other crap.

Mortgages, usury, fractional reserve banking, interest rates, why get into any of this if you can possibly avoid it?

I know it's not practical to apply it to every sale, but there are sales where the seller would be willing to take say, one third to half now and the rest in instalments on completed houses, if a binding contract was issued by lawyers.
On houses you are having built, it would be easier to negotiate direct with the builders.

This type of thing becoming more frequent is contingent on house prices falling enough so that it is possible to realistically contemplate doing it this way-but that is happening nicely enough all on its own.

More and more people who can save up enough are going to try and do this, in all probability. Avoid mortgages at ALL costs. Many builders would do a deal with someone in the current market. Ask before you go to the bank just because that's what people do.
 


Squire Allworthy

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May 31, 2007
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Where do the people get the money to pay the builder? I always thought that most of the self build required finance from the bank?

A cheaper possibility right now would be for a few enterprising people to to form self help COOPS and buy up a ghost estate cheap, and then do the work necessary to complete themselves.
 

'orebel

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Where do the people get the money to pay the builder? I always thought that most of the self build required finance from the bank?

A cheaper possibility right now would be for a few enterprising people to to form self help COOPS and buy up a ghost estate cheap, and then do the work necessary to complete themselves.
Assuming you know enough enterprising people wiling and able to live in identical shoe boxes in the arse-end of nowhere
 

Harmonica

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Jul 2, 2009
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They paid the builder direct in instalments, as the work was completed, at the price he asked, over the time it took to build the house.

There was an outstanding amount owed at the end, which they and the builder agreed they would pay off monthly for a couple years. No interest payments, no other crap.
Short of having massive savings how could any one buy land and pay for house to be built over a few years. What builder would basically accept an interest free IOU for a few years.
 

Squire Allworthy

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Assuming you know enough enterprising people wiling and able to live in identical shoe boxes in the arse-end of nowhere
I am assuming that in less populous areas there may be young bricklayers and plasterers who have minimal employment and perhaps want a home. Also surely not all ghost estates are shoe boxes?
 
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Assuming you know enough enterprising people wiling and able to live in identical shoe boxes in the arse-end of nowhere
Dunno I remember Sean Ryan ex Lab Dublin North TD being involved in this with a lot of others and I believe he still lives in the same house.
 

stripey cat

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Jan 14, 2009
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Also, grow your own food.

Generate your own electricity.

Build your own computer (how hard can it be?).
 

Ringo Starr

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Nov 8, 2010
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It's an idea anyway, but you have to think the builders are in the red aswel as the buyers. We simply were living beyond our means, thinking the boom would last forever. Bad decisions were taken but this is not only an Irish problem.
 


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