Author Topic: Buy land and Build  (Read 2536 times)

pka222

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Buy land and Build
« on: October 28, 2013, 06:31:49 PM »
I'm looking for some input on estimating building costs. There is an opportunity in my neighborhood to buy a 1/2 acre for 200K with great views. It comes with water, power, septic, a fence and grading already installed. The only thing left would be to improve access and put up a house.  The eventual plan would be to put up two homes but for the time being I'm focused on the economics of just one.

  Building costs is the question.  I have been struggling to get a reasonable quote- I have two ballpark figures from 2 local contractors that range from 120K to 300K for a 9X18 meter 3br 2ba with no specifics.  Since I'm not in the US, and there are no building codes (at all) the regular multiplier of 100 to 200$ per square foot should be over estimations.  Particularly since labor is inexpensive.. thought materials are .. more dear. 

I need to make some informed estimated about the cost of construction before moving forward with the project -pulling the trigger on the land, getting the blue prints made up etc- and getting a real solid quote. 

Question, how would a newbie like me go about estimating the cost of construction?  I'm aiming for a 18X9 meter (1743 sq feet) concrete footing, block walls with lots of window (louvers), open plan living space, tile flooring, vaulted ceiling, large deck (900sq feet partly shaded by extended eves)  ... can someone point me to a source?  Its a long shot- I know it's all local. 

The estimated rent on this house would be 3000 to 3500 depending on the finish and fixtures.


Rural

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Re: Buy land and Build
« Reply #1 on: October 28, 2013, 07:11:35 PM »
Well, we just finished a build but it was both in the US and a DIY. ~2,000sf for $80,000, but almost none of that was labor costs. I think this varies so wildly from place to place that it may be hard to offer advice. Where in the South Pacific are you? You may be better off looking for a more local building forum to get an idea of what's normal there.

pka222

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Re: Buy land and Build
« Reply #2 on: October 28, 2013, 08:37:09 PM »
Thanks Rural- I'm working on it, but there isn't much of a local forum, just the local and overseas contractors. I'd like to develop an estimate independently to allow better comparison/ understanding of the estimates.
I'm in Samoa, where less then 10% of the land is freehold (able to be sold) which drives the rental market artificially high, hence the interest in building a rental

KingCoin

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Re: Buy land and Build
« Reply #3 on: October 29, 2013, 09:23:25 AM »
Is it possible for contractors to show you some recently completed projects along with their respective costs and a reference to the client (both for confirmation on price and a to get an opinion on the contractor)? Even if they aren't exactly what you envision, it should start giving you an idea of what you can get for a given amount of money. You can also do a finger-in-the-air estimate of what these properties might rent for and see it it's more economical to just buy an existing property. Paying a premium to build a custom property might make sense if you're going to live there and want something exactly to your specifications, but probably makes little sense if it's just going to be a rental.
« Last Edit: October 29, 2013, 11:25:16 AM by KingCoin »

pka222

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Re: Buy land and Build
« Reply #4 on: October 29, 2013, 01:50:53 PM »
King coin- excellent idea- I'm setting up appointments for this weekend
Cheers

Snowboard junkie

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Re: Buy land and Build
« Reply #5 on: October 29, 2013, 03:27:47 PM »
Your best bet to control costs may be to go with a modular solution.