Is it more affordable to buy a home, or build your own?

I will soon have my credit to income ratio to the point where I will qualify for about a $150,000 home loan. Our income is not high enough to get much more than that. We will need a 3 bedroom home for our family of five, but there is very little in my price range with that may bedrooms unless I want to move an hour or more away from our jobs.

Would it be significantly more cost effective to build our own home? Where can I get more information on this? Googling offers me alot of junk and useless information that doesn't help. If I built my own I would have to contract out for the major things like foundation, roofing/trussing, etc. I may be able to reduce costs by doing my own drywalling, siding, etc. though. The question is wether or not it's practical enough to be worth my time.

Building a home will be the biggest headache of your life!!! DIY'ers have no business building houses unless you have been a carpenter and been on a new home job site at least four or five times. I have worked for a general contractor for a number of years and allow me to lend you this example.

My construction company and a DIY'er began building 2 homes of similar size, my company finished 3 months earlier passed every inspection the firsat time and finished under budget. To build a custom 3 bdrm home will cost more than 150 large. You have to include the price of land, a water meter, machinery to make a spot for the house, a driveway and much, much more.

Now if I were you, I'd look for a home that is around 80,000. Build a room addition to make it suitable for your family. If you still want to build, hire a General Contractor to run the job for you. It'll get done faster, it'll get done right the first time.

your bottom line -worth my time- how much you worth per day and will you have a partner--now you talk sweat equity-act and be the builder--sub out all you can't do---go to the bank--they'll help you decide

In my mind, there is no question that you'll get more for your money by doing it yourself. But, be judicious, you cannot do it all yourself. Think of being more of your oun general contractor, but be ready, as you suggest, to do as much as you can do yourself, where you can do it well, and keep on schedule. Having gone through this myself, I estimate that I saved 40%-50% what it would have cost having someone else build my home. One other suggestion to avoid mechanics' liens for unpaid materials, and get the best pricing...buy everything yourself. Open an account with a builders' supply house and ask for a contractor's price on everything. Have your subs buy everything at the supply house, and check deliveries on site. Make sure you get what you pay for. It works! Use the library and internet to get more info on building your home, and good luck.

If is cheaper to act as your own contractor when getting a home built. You don't have to pay the contractor fees. Having said that. there are a couple of things to consider. First it is a rare bank that will lend money to someone who has no experience to do this yourself. Even if they are willing they are going to want a backup plan in case you get in over your head and you probably will. If you don't get it built and default they have to spend more money to clean up and finish the house. Most would look at it as a losing proposition. If you have no experience in building how will you find good subcontractors for the work you want them to do? Most good subcontrators are busy on multiple building contracts and you will be extra to them. This results in time delays and headaches. How about building permits? Insurance or bonding required? Do you have the tools to do the job yourself? Price them and then ask if they will ever be used again. Another idea is to talk to a homebuilder in your area, tell them what you want to do yourself and see if they will negotiate on the price for the home for work you will do yourself. If buying a new home forget all the bells and whistles. That garage door opener they want to add will cost more than getting in one later and you will get to pay for that opener for the the next 15 or 30 years. My father was a contractor we worked for him and have some knowledge of the building industry. Each of his children could build a home with some outside help. My brother decided he would be the contractor for his home while he continued his day job as an engineer. My brother found out that he did not know enough to do the job himself and my father stepped in. I would either pay to get the job done, get a fixer upper and work for the next year on repairs or get a new home and get the basis in the home and do the extra work as time and money were available. I am not saying it is impossible, another brother build his home himself but it took several years and he paid for everything up front. Fortunatley it wa in the country so there we no neighbors to complain or steal from the job site.