She Strengthens

From House Hunting to Dream Home

My fiancé’s question still resonates in my mind: “Why don’t we just build a house?” It was 2019, and we were struggling to find our perfect home. I dismissed the idea, thinking it was only for the wealthy. Fast-forward to 2021, and we’re settled into our newly built home, comfortably making mortgage payments despite the pandemic.

A Privileged Start

I must acknowledge that my fiancé and I were fortunate to have no student debt when we started saving for a house. I had minimal debt thanks to financial support from my parents, scholarships, and working throughout my undergraduate degree program. My partner, on the other hand, went through a college apprenticeship and worked while completing his education, allowing him to start saving at a younger age.

Mid-Income Earners

We’re not high-income earners; instead, we fall into the mid-income range. After completing my degree, I bounced around from various term and seasonal positions, eventually landing a permanent position with a salary of just under $50,000 and benefits. My partner had bought into a business in his trade, earning slightly more than I did.

Frugal Beginnings

We both come from mid-income families and were raised frugally, which helped us develop similar spending habits. We had some savings set aside, although I admit I wasn’t using high-interest savings accounts at the time. Our goal was to find a home, free of roommates, and we decided the maximum amount we could comfortably afford was around $250,000.

The Search Begins

In the spring of 2019, we started house hunting with a knowledgeable realtor. However, after viewing several houses, it became clear that unless we were willing to put in a lot of work and money, we wouldn’t find a home suited to our needs. My fiancé suggested building a new home, but I was hesitant, thinking it was only for the wealthy.

A Change of Heart

By early 2020, after a few more months of searching and a declined offer on a house we liked, I started considering my fiancé’s idea of building a home. We found a floor plan we both liked, and to our surprise, the quote from a reputable local contractor was under our original budget. We made compromises, deciding to build a two-bedroom home and doing the landscaping and painting ourselves.

The Process & Cost Breakdown

We purchased the vacant lot for $35,500 using our wedding and home savings. By buying the lot outright, we saved over $2000 in land transfer tax. We used the land equity towards our down payment on the construction, putting 20% down and saving over $7000 on mortgage insurance.

Overcoming Obstacles

Dealing with the bank and financial paperwork was hectic, and the pandemic added an extra layer of stress. I was temporarily laid off from my job, but fortunately, it was only for 20 days. My fiancé’s business was also affected, but as an essential service, he was able to continue working.

Home Sweet Home

After all the financial paperwork was completed, the actual construction of our home happened quickly. We bought the lot in March, and by September, we had moved into our new home. Sometimes I feel guilty about having a new house, but I realize that our home actually costs less than most of the homes we looked at on the market.

The Takeaway

My story to homeownership may not be realistic for everyone, but maybe the takeaway is that financial ideas or dreams you never considered realistic may actually be more attainable than once thought.