Veronica, I dont want to be the bearer of bad news, but after doing my own, self build'ish' project, I can safely say that there is absolutly no way you will build for under 160K, and even at that, I would suggest that 200K would be a realisitc bottom end figure with cheap labour. I say self build'ish' because I went with the cheapest quote for a builder for a house at 7and ended up spending 250K and still live with the problems and I work in the industry and know what I am doing! A few pointers below:
1 - Cheapest is not best, even with good contracts signed.
2 - 1 in 10 of the cheapest tradesmen are good. This is the reason they are cheap.
3 - It takes one poor tradesman, eg plumber, to destroy your whole house. It can take years to resolve issues like this and a lot of work.
4- If you are going to sell this on, pulling back the spec or the quality may render the house un-sellable. EG if the insulation is underspecced, it wont get certified.
5 - People quiet often think when they get the timber frame quote that the house is going to be very cheap. I go quotes as low as 18K for 1700 Sq M, but read the fine print, as it may cost you 80 by the time all other elements are factored in such as craneage, roof up-spec for insualtion etc.
6 - Are you invovled in the trade? If you dont have experience, I would highly advise against a self build. Unless you really know what you are looking for, you will lose out in the end. Many TV programmes make this game look easy. It is not, and missing out on one element, could be more costly then paying for a full cotract under one builder.
7 - Do you have a job? Again, if you do, one will suffer. Either the job or the project. Self Builds are full time jobs.
8 - If you do go ahead, get a good Architect or Architectural Technologist. DO NOT look for teh cheapest on this, as in this case, you willget what you pay for. Point proven here time and time again.
9 - Remember that you will need additional insurances and there are numerous hidden costs that a self build holds such as VAT, if you are not VAT registered.
10 - If you are borrowing, check with the bank, as they may have issues with this in teh current climate.
Finally, I agree with gally74. Look at building something smaller. Build it well, and with at least a mid range builder. Save yourself the headache, and put your effort into fitting it out and the smaller easier works that you could do direct labour on. (Tiling, Flooring....) You can pour foundations for extending it, and sell it with that potential. Or build the 3000 house well, and do not fit out half of it, therefore saving money and allowing you to put it into areas that it matters.
Finally, in the current climate why not look for a good builder in your area and approach them with a realistic budget. In the current market many builders are looking for projects to carry them over and keep their staff employed until the next big one comes along. You may be surprised at how low they may go.
