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> Please discuss your views about building a
> house from scratch v. buying and remodeling.
It is always a big risk building in a new neighborhood since you don’t know how the neighborhood will end up.
If you want to build in an established neighborhood it can get expensive since you usually have to buy and tear down a decent home.
A couple things to remember from someone who has been involved with real estate for his whole life:
1. Building a new home (or apartment, or office building or shopping center) will end up costing more than you thought it would.
2. Building a new home (or apartment, or office building or shopping center) will end up taking longer than you thought it would.
There are so many of them already built and for sale, why bother building?
Somewhere down the line, I would like to buy a nice bit of land in the middle of nowhere and park a doublewide there for about ten years. Then I'd like to build something completely modern - all concrete and steel and 12' glass, with views to deciduous trees and mountains.
Must have interesting sky.
ROFLMAO..........
When I bought my first house for the astronomical sum of $7,500, I had to do the rehab myself because I didn't have the money to hire anyone. I had NO experience with a hammer or a nail. You should have seen me trying to put up crown molding. I never could get the angles right at the corners to I went to the building supply to find out why. The guy asked what kind of mitre box was I using......and I actually said "What's a mitre box?" You should have seen the look on his face.
Long story short, it took four months to get it livable and thank GOD for chaulking. I bought it by the case to plug and hide my crappy work.
I will NEVER do a rehab or buy another old house again for ANY price. It was a freakin' nightmare.
Greetings from flyover country-
There's a tear down up the street (standard Chicago lot). I've asked my wife a couple times at what price it's worth buying a lot and building a house or two/three flat. The response I get is that it's not in us to undertake such a project. I'm quite interested in this equation because in addition to the one offered as a tear down at 700k. There are two others in my block that are boarded up as the result of fires.
I suspect each of these will come available soon as tear downs as well. If the market weakens more and there are 3 tear downs to choose from it would be nice to know the numbers but in the end it's pointless if it's not in us to undertake the project. My thinking was gather the cost of teardown (about 20k) construction, permits, etc. then make some lowballs on these properties. My guess was that at around 400k it's worth buying these lots. They are zoned for single family or up to 3 units. I'm guessing cost of construction in the 300k range. If you build a 3 unit building, rent 2 units at $1,800 each and live in the third I think the numbers above would work. In my mind the two wild cards are the cost of construction and property taxes.
As a point of reference, last year it was commonly said a standard lot in this area is worth 1M. That is obviously not true anymore as the 700k teardown just sits.
One thing I had in mind particularly - which will no doubt be discounted as 'timing the market' - was whether or not there comes a moment in a housing bust when conditions become ideal to undertake building.
My tastes run to pure 'types', whether Jacques Gabriel or Richard Meier, so I find I must seriously consider building. There's little out there likely to be genuinely pleasing (for me). Far too much pastiche, to put it gently.
Actually, I was looking at a nice tract of 2.5 acre farmland out east of town (about 20-30 minutes from work). But I've been on a minimalism kick, complaining that I don't need a McMansion or 2500 sqft SFR in town, but I don't want to pay $1800 in HOA fees at a townhouse for "greenbelt maintenance".
Anyway, one of my colleagues forwarded me the site for the Katrina Cottages. Cute lil' buggers, and they would make a good guest house later! I kinda wondered if you could do up the interior super-nice, considering that they are small and otherwise inexpensive. Maybe like an old British library theme, or a stylish New York apartment theme.
Brand,
I joked with my wife that we should buy the teardown and put a Katrina cottage on the lot and see how long it takes for the neighbors to go balistic.
The Katrina cottages are very cute. They look like beach cottages - they look like nice versions of the cottages on marinpos.blogspot.com -- at 1/20th the price.
Paul,
Why would the neighbors go ballistic? I'm not sure the cottages are suitable for Chicago, but they're really cute.
*unlurks*
OT: looks like Vancouver is starting to cool of...the bidding wars have stalled and houses are starting to sit rather than sell in 24 hours...will the bubble there soon pop? At $600K for a starter home...
http://www.theglobeandmail.com/servlet/story/RTGAM.20061112.wvanhousing1112/BNStory/Business/home
Enjoy, and keep up the blogging we lurkers are paying attention.
Oh, and this was four or more threads ago but I was not in favour of banning Confused Renter. Yet.
*relurks*
Comments 1 - 13 of 174 Next » Last » Search these comments
Per Bruce's request:
Please discuss your views about building a house from scratch v. buying and remodeling. Please share first-hand experiences and second-hand knowledge about building dream homes from scratch. Tips, tirades and dire predictions welcomed. Discussions about kitchen counters and adobe v. steel and glass even more welcomed.
And yes, Peter P, discussions about bathroom layout are most welcomed.
#housing