To Buy or To Build???

Question

I'm researching buying or building my first home in a well desired area here in Houston near the Medical Center and Downtown. I currently live in the neighborhood but I'm renting. I really like this area, great schools, central local, etc.
The neighborhood was flooded by Tropical Storm Allison and so now people have come in and rebuilt on the land. Now the neighborhood is filled with what I like to call mini mansions. Property value is high and there's always at least 4-5 new homes being built.
My question is should I get into one of the older homes and rebuild later or just get in and build? Is it expensive to have a home built in a well desired neighborhood? I'm assuming so but maybe it is not as bad as I think.
How would I pay for a venture like this? What are the costs involved?
What kind of down payment would I have to make on say a 300-500/K home if I had it built?

The lowest price for a pre-existing home is about 279/K give or take.

Thanks in Advance!

Answer 1

We just finished a remodel in a nice area in San Jose, CA. In desirable areas, the biggest cost is usually the land. For a general contractor to build a home on land in a great neighborhood and to build a home in a less desirable neighborhood a few miles away, the costs are almost identical. So the big difference is the property. If you've got land or can buy the land cheap, I'd suggest building. The biggest advantage here is that you'd get exactly what you want. The problem is that you'd have to account for where you'd live in the meantime while your home is under construction.

If you'd have to buy a house and tear it down, you're going to pay for the land, the demolition, and the new construction. If this is the case, I'd find a house you like and then fix it up over time. You'll have a cheaper entry cost and could appreciate the value of the home over time while you make improvements.

As an example, where I live, my house is worth about half of what the land is worth. So if I already owned the land, I'd build. But to buy and then tear down the existing structure would be more expensive.

Answer 2

I don't live in Texas so take my advise for what you will.
I was in the same dilemma two years ago here in California.
Houses that where 2 bedroom 1 bathroom detached garage where selling close to 200,000 dollars. The newer homes where way over 1 million dollars and the in between homes where sitting at 500,000. I was able to pick a location and contacted several contractors to bid on my plans. The best price that I got was 120,000 dollars. When the appraiser came in to determine the price of my house it was valued at 320,000. Three bedrooms 2 bathrooms, attached garage, and a cozy 2000 square feet.

I got a loan from Citibank, which at that time they had the lowest interest rates in town. Best of luck to your.

Answer 3

i'd construct it your self, 1500.00 is alot of money for a posh shed. it really is a small pastime for the final accessible guy. you should do it your self in case you spend a touch time to how you are able to decrease, hammer, and degree and nail roofing. im certain there are a ton of shed plans on-line you are able to order or download for loose. If not unwell wager your domestically library has a tremendous number of books in this topic. complete of significant images and step by technique of step classes and plans. in case you youngster is 11 remember, this may likely be a shed in a three hundred and sixty 5 days or 2 as his pastimes will change swifter then climate. How ever planning and construction something may be an outstanding lasting gaining expertise of experience for any baby. so i'd say get plans or books, order factors and procedures. probably if needed attempt to invoke the help of a pal, neighbor, or payed handyman the position needed. you'll spend alot a lot less then 1500.00 and private procedures as well. good success

Answer 4

1st rule. BUY the worst house in the Best neighborhood. if there is significant damage to the home you are buying, cost could become prohibitive. you must be able to live in it safely, no mold or other flood issues that may effect your health, etc,. if you build, you still need to purchase the land prior to paying a builder. to build a new home is not as costly as you think, looking at my homeowners policy, to rebuild my little little home, $125k, the market value is over $500. location location location ! good luck.

Answer 5

Buy...
You can get a better deal.. better workmanshop, less headaches, and possibly get a lower rate on a oan if you buy a fixer.