I’d been talking about issues with selling my condo in one of my other post, and now I’m getting ready to move into a rental house for the next 6 months or so while I watch the market and shop for the best deal I can find on my next real estate purchase.
I’ve been self-employed in the remodeling / repair biz full time for a little over 6 long years now and packed more work hours into those years than your typical human, so I’m starting to feel confident that I could build a house and do it right… My preference for my next place would be to buy land and build from scratch, but if I found a really good deal on an existing place that suited me, I might still go that route as well.
I’ve made a few good connections as far as other trades people… electricians, painters, sheetrockers…. still hadn’t found a good plumber yet, but since it’s my house I can do most of that.
I took the GC course a couple of years back, and the practice exam – 60 question, open book, with a 3 hr time limit was a cake-walk. I’ll soon have the capitol reserve to take the real test and get officially licensed… I know I don’t “need” that to build my own house, (and my professional projects have yet to exceed $30K) but I want to get the license soon anyway… if nothing else, it’ll look good on my business card.
This could be a pretty broad topic, but any pointers, or yah or nah comments for someone considering building a house themselves for the first time in the next year or so?
Replies
i would buy, i've read your thread and you would build to nice to get your money out.
buy in a year and work on other peoples houses, then when it appreciates sell out and buy your dream dirt (land) and build there.
Well, whatever I do next is where I'm hoping to stay for a long time. I was in my condo for 10 years... I'll walk away with a respectable chuck of change from it, just 5k less than what I should have got.
Edited 6/25/2008 11:18 pm ET by drbgwood
Last time I saw Michael Stone speak he said 'don't build your own house, it will just distract you from running and growing your business. Have one of your buddies do it."
In this market I would buy an existing house.
In this market I would buy an existing house.
Strictly from an economics standpoint you are absolutely correct.
From a personal standpoint he may just want to have it the way he wants it. If so, building his own is the best way but there is a true cost to that.
"Never pick a fight with an old man. If he can't beat you he will just kill you." Steinbeck
Given the real estate market conditions in the States, I cant imagine it is cheaper to build (even if you are doing some of the work), but I suppose it depends on regional differences if that is true where you are.
So it looks to me like housing prices have fallen to where they would have been 3 to 5 years ago for existing (except my condo, which I just sold for 95K and would have sold for 85K three years ago, 78 K five years ago)... mainly houses 200K+ are affected in the loss of value...
So the lodgic I'm getting here is that it I would have made no sense to build 3 to 5 years ago either?
3 to 5 years ago was when the real estate market was at its peak. most places now are down from where they were.
Build you own house. I have, then sold it 2 years later, spec house with a plan!(no capital gains)
he can take the same capital gains exemption on one he buys and lives in for 2 of the last 5 years preceeding sale.
"Never pick a fight with an old man. If he can't beat you he will just kill you." Steinbeck
I forgot, this is only good if Mccains elected, Oboma is going to let these tax reductions expire!
oh, I'm pretty sure he will find some way to adopt McCain's position and try to apss it off as his own.
but, let's try to keep politics to the tav.
"Never pick a fight with an old man. If he can't beat you he will just kill you." Steinbeck
Just making an observation!
just kidding....
your observation was legit..........
"Never pick a fight with an old man. If he can't beat you he will just kill you." Steinbeck
I don't know where you live, but you may be able to find an upside down builder and rake his #### over the coals. There are a lot of builders in trouble out there right now. I just heard of one around here that purchased a 90% finished house that would normally sell for $450,000, for like $190,000. Most people are afraid to tackle an unfinished product, especially in a bad market. Call your local banks and mortgage brokers to see if they know of anything.
interesting!
I be all over a 90% finished house like a fly on $#!T
I be all over a 90% finished house like a fly on $#!T
Unfinished houses exist. I was just offered one for $175k, current fair market assessment of $293,200. On 5 acres. Occupied for several years, unfinished.
I'm not jumping, but did discuss buying 2 houses from that motivated seller. The second one's maybe 80%, due to deterioration, delayed maintenance.
This afternoon have a meeting with a couple of guys who want to help me with my new house here. Which is my primary interest. PAHS works. Bury it.
jon where is "around here" ?
I am very curious to know the geographic area you are talking about.
I am in North Carolina, but most markets around the country are hurting. I would check with your local bankers for sure.
my 2 cents..
Does "build my own house" means just being the GC on it? If so, then just buy as other have said.
If you will do EVERYTHING, great learning experience. Do it as a 2nd job if you (and family) are young enough to have the stamina. Esp. if it is on a chunk of land.
In own case, figure time building own was worth close to $100/hr in today's $$, primarily as I could change stuff as I went depending on current material costs, etc.
Any house that I've had a hand in building is a good place for me to spend time in relaxation. The small cabin I built by myself, with only hand tools, was the best place I've ever lived.
There's something about living inside my own positive energy which makes that a place of great contentment and simple pleasure.
Of course it's important to choose a place in a natural setting, so that connection is easily experienced, daily.
Buy.
Building your first home is HUGELY time consuming and you always go way over budget. Plus you will make rookie mistakes (dont take that the wrong way, you would be a rookie homebuilder no matter how many renovation projects you have done) that will be costly.
I have built or have overseen the construction of hundreds and hundreds of homes in my life (worked in corporate america for 20 years) and amd considering buying my next house because:
1. I need to focus on my business
2. My wife will bankrupt us if she gets to make selections again
3. The market is great for buying from a distressed seller and getting a great deal.
Thats my 2 cents worth.