The only thing we will be able to do is all the heating/cooling in the house and small things like painting. We will have to pay for everything else to get done.
2007-07-16 09:53:30 · 13 answers · asked by jon jon's girl 5 in Business & Finance ➔ Renting & Real Estate
Depends on the cost of land in your area. I would check out zillow.com and find out the approximate value per square foot in your area.
www.zillow.com
But, it is still a toss up. You will usually end up paying between $10,000 and $20,000 for your land (and that is at about.5 acres). Then again you can get great deals on 10 and 20 year old homes- especially in this market.
It all depends on your market. Check out Zillow and the local newspapers and see what land is going for. Check out the houses. As a yard stick, most houses cost about 95-110 dollars per square foot- and that is you avoid adding on anything fancy.
2007-07-16 09:58:46 · answer #1 · answered by jkaiseresquire 3 · 0⤊ 0⤋
If you remove the land cost, yes it may be cheaper building your own instead of purchasing a similar newly built home. However, keep in mind that your construction costs will be higher than a large scale builder because you can't take advantage of "economies of scale" (or buying in bulk ...in normal english). For example, you cannot spread your architectural and project management expenses across multiple properties. The same is true with your construction trades. But on the other hand, you can eliminate all of the developer's profit and overhead (unless you put a value on your time), so there may be some limited savings. Find a design/build firm and run the numbers very carefully.
2007-07-16 10:15:17 · answer #2 · answered by therainbowseeker 4 · 0⤊ 0⤋
If you cannot afford to build right now, have you thought about putting a manufactured home on the land? They are not a good investment, but if you are renting and cannot swing putting a house on the land, this may be an option.
Check the zoning on the land to see what restrictions, if any, exist about developing the land.
2007-07-16 10:17:54 · answer #3 · answered by godged 7 · 0⤊ 0⤋
Bearing in mind a common quick theory for property developers with justifiying a land purchase for development is "the 3 thirds" where
you pay a third for the site
a third as build cost
and the final third is profit]
by my mathematics:- you already have the site, you wont be selling it on for profit, so the only cost is the build cost...
A golden opportunity potentially leaving you with a property containing 66% EQUITY!!
Take a third off the estimated market value of the completed home, then half it for how much to spend to build it
2007-07-16 10:56:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Most likely building a house will be cheaper cause the contractor charges extra for the supplies plus labor (which some of it you can do). If you build it you are getting free land and if your lucky you can get a contactor that will have you provide the supplies.
2007-07-16 09:59:18 · answer #5 · answered by Amanda L 3 · 0⤊ 0⤋
If you get free land, you're probably as cheap or cheaper to build. Land costs are a significant part of the cost of a house. Since this is being gifted to you, you probably have a minimum of $25,000-$35,000 head start on your costs.
2007-07-16 10:13:55 · answer #6 · answered by acermill 7 · 0⤊ 0⤋
If she buys you the land, then it can be cheaper to build, depending on how extreme you want your house. Like how many square feet, one or more stories...etc. It all depends. Get some quotes from your area. That'll help you the best.
2007-07-16 09:57:34 · answer #7 · answered by Les 2 · 0⤊ 0⤋
it's a toss up...older homes can become money $ pitts!.
a new house on the other can become expensive during the building process when you decide on all the "upgrades" that you may want..like granite counter tops, backsplashes, tile etc.
but...it sure is fun building your new home and it is soooooo wonderful when you get to finally move in.
there will be headaches along the way, permitting problems, material shortages, incorrect items etc...but soooo worth it in the end.
so bottom line...it is a toss up - both can cost $ you weren't expecting to pay.
good luck and congratualtions on either decision.
2007-07-16 10:02:21 · answer #8 · answered by Blue October 6 · 0⤊ 0⤋
if you're getting the land purchased for you, then yes building will be cheaper and you get to choose the methods and what goes in to your house, so you can always pick the most cost-effective (as long as it will last) and save...not to mention, equity on land will help you in the long run
2007-07-16 09:58:11 · answer #9 · answered by Chickenfarmer 7 · 0⤊ 0⤋
It would be cheaper to buy a house if you can't do much of the construction yourself unless land/lot prices are quite high where you live.
2007-07-16 10:01:06 · answer #10 · answered by Anonymous · 0⤊ 0⤋