How to Live Mortgage Free and Reap the Benefits

Have you ever wished to live mortgage free for the rest of your life? Could you imagine, you can downsize your job, have more free time and way less worries about bills or keeping a job. It is a nice thought, but with todays home prices it is not as attainable. That is why more and more people are looking into more remote areas and building their own home. It's not that crazy, on the Big Island in Hawaii a lot of people do this. They buy land and use some of their savings to make their paradise mortgage free.


How to Build Your House with No Mortgage


Trying to build a house with no approved financing is a stumbling block if you will hire someone else to do the job for you. Many builders need proof of your ability to pay the whole process before they get started with the project. The main issue here is that builders are not willing to start any project that can never be finished because of financial pitfalls. Take note that most builders hire subcontractors for most of the job. The builder should then hire these workers with full confidence known that all of them will get paid for their efforts and time.


If you don’t have approved mortgage yet you wish you hire a builder for building your home, there is a chance that you need to prove your capacity of paying for the whole process. There might be a need for a substantial down payment before the builder agrees to begin the project. You also need to purchase the land ahead of time if you don’t own one yet. It is your choice if you will buy the land with a loan or outright. However, trying to build a house on a land that is not yours yet or you don’t actively purchase will pose problems down the road. You can purchase the land on its own then hire builders after that.


Build Your House on Your Own


When you have the talent and time, you can always build your house on your own land. While many people try to get help for some tasks when it comes to home building, there are those who enjoy the challenges of building their own house from the foundation up to the roof.

If you build your home on your own mortgage free, you still need to acquire proper permits or permissions from your city or county. See to it you know the required permits you have to obtain, before, during, as well as after the project.


Know the Price Involved


Discuss the realistic costs with the builder regarding the kind of house you wish to build. The costs of the whole process might take you aback. While it is true that you can save a good deal of cash when you pay for your house in case instead of paying for it for several years with some interest charges, it is important to have a great idea of your financial obligations when it comes to building a house.


You should not just find out the possible costs associated with house building but you also need to know more about your real estate taxes and annual hazard insurance. Just because you will be living mortgage free doesn’t mean that you will be exempted from the recurring financial obligations.


Is it Really Possible?


Getting back to Hawaii, yes most defiantly it is. I stayed with a guy from Japan that moved to Hawaii. He paid about $10,000 for a lot in Volcano Hawaii but first knew he needed income. So he built the only hostel in the area, all he used was a framer and he did the rest of the work himself. It took a bit of time and he lived in a tent for a while during the process. But it certainly paid off, at this point he watches his kids and chickens. The money comes in because of hostel sites, airbnb and many other online resources. He was then able to do the same thing but built his dream house for the family on this income. 


So what about Me?


Well, what are your priorities in life? Do you want a suburban home and maintain a job in the city? In this case, you will probably be best buying a home. Unless you can get a good city lot and dish out the cash to build a home the city will approve. But if you are looking to cut out and do something else in life, then it is possible. Land is everywhere and there are many tools to do this on your own or with a small group. You can even look at our AirCrete Home article, these can be done for $10k to $20k. Also, you don't have to be on the moon to find cheap land, you can be within 30 minutes to an hour from the city and still get land for under $10k. Then look at the home style you can afford, weigh the costs and plan it out. Get a few chickens for eggs and grow some crops. It is a different lifestyle but it's quite rewarding. 


If you are interested in finding some land at good prices go to LandZero. Also, we would greatly appreciate it if you would rate our article below. It really helps us keep the work going. 

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