Comments on: The Cost of Building a House http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm Building Wealth through Saving and Investing Sat, 21 Nov 2009 03:00:37 -0500 http://wordpress.org/?v=abc hourly 1 By: FrugalTrader http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-107240 FrugalTrader Mon, 16 Nov 2009 13:31:12 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-107240 With the significant appreciation in the St. John's real estate market, builders have increased their prices significantly. Today, builders are charging around $120 - $125 per sq ft of developed space (not including extras). With the significant appreciation in the St. John’s real estate market, builders have increased their prices significantly. Today, builders are charging around $120 – $125 per sq ft of developed space (not including extras).

]]> By: Jacquie Galea http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-87461 Jacquie Galea Tue, 16 Jun 2009 00:51:56 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-87461 Better late then never, here is how our project is playing out. After much debate we decided to proceed with building our 1717 sq ft bungalow. It is still cheaper then buying something built with the layout we want in our area. We are one hour outside of Toronto Ontario, in a desirable village that lots of city people are relocating to. Our project will be start in about 2 weeks when the building permits are in. Our project manager has alot of great connections as he frames homes for a local builder. He is charging us a flat fee (very reasonable) for overseeing the project up to paint, including trim and doors. We are looking at just under $125 sq. ft. We are taking care of everything after that point, but these prices (flooring, paint, porch rails etc) have been included in the per square foot price. The economy is working in our favour as well. We have done all our estimates on the high side, and have allowed extra for incidentals that we have not anticipated. I am certainly learning alot as we go along. My husband is not able to help alot with the project and I have overseen an addition to another home, so I am it! I am a good negotiator and demand that I only pay what I was quoted. Keeping an eye on your costs, and not hiring a contractor can save alot of money. Sorry contractors, no offense intended....I'd use one if I had money to burn. I will get back with final numbers at the end of the project. We are not in a hurry and have an 8 month timeline. Better late then never, here is how our project is playing out. After much debate we decided to proceed with building our 1717 sq ft bungalow. It is still cheaper then buying something built with the layout we want in our area. We are one hour outside of Toronto Ontario, in a desirable village that lots of city people are relocating to. Our project will be start in about 2 weeks when the building permits are in. Our project manager has alot of great connections as he frames homes for a local builder. He is charging us a flat fee (very reasonable) for overseeing the project up to paint, including trim and doors. We are looking at just under $125 sq. ft. We are taking care of everything after that point, but these prices (flooring, paint, porch rails etc) have been included in the per square foot price. The economy is working in our favour as well. We have done all our estimates on the high side, and have allowed extra for incidentals that we have not anticipated. I am certainly learning alot as we go along. My husband is not able to help alot with the project and I have overseen an addition to another home, so I am it!
I am a good negotiator and demand that I only pay what I was quoted. Keeping an eye on your costs, and not hiring a contractor can save alot of money. Sorry contractors, no offense intended….I’d use one if I had money to burn. I will get back with final numbers at the end of the project. We are not in a hurry and have an 8 month timeline.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-78571 FrugalTrader Mon, 20 Apr 2009 22:44:02 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-78571 Jacquie, what part of Canada are you from? As well, are the "allowances" included in the $110-$120/sq ft? Jacquie, what part of Canada are you from? As well, are the “allowances” included in the $110-$120/sq ft?

]]> By: Jacquie http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-78565 Jacquie Mon, 20 Apr 2009 21:41:15 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-78565 Now that we have actually started nailing down numbers with our project manager, I think $110 -120 sq ft will get you a moderately appointed home (we are building 1717 sq ft bungalow with 2 car garage). I think some of the sq. ft. prices quoted ($200-$250) are way out of line. Land price of course, is not included in the number, and DGI , 1.5 is high. That would mean your original budgeting was way out of wack. I believe rule of thumb is allow 10 percent more then your budget. When our house is finished, I will come back with exact numbers. We are fortunate in that we are building when there is a downturn in the economy which will get us better prices from the trades. Now that we have actually started nailing down numbers with our project manager, I think $110 -120 sq ft will get you a moderately appointed home (we are building 1717 sq ft bungalow with 2 car garage). I think some of the sq. ft. prices quoted ($200-$250) are way out of line. Land price of course, is not included in the number, and DGI , 1.5 is high. That would mean your original budgeting was way out of wack. I believe rule of thumb is allow 10 percent more then your budget. When our house is finished, I will come back with exact numbers. We are fortunate in that we are building when there is a downturn in the economy which will get us better prices from the trades.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-78531 FrugalTrader Mon, 20 Apr 2009 18:08:06 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-78531 Wow DGI, that's a bit high for me. We ended up spending 10% more than what was quoted by the builder. Wow DGI, that’s a bit high for me. We ended up spending 10% more than what was quoted by the builder.

]]> By: Dividend Growth Investor http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-78519 Dividend Growth Investor Mon, 20 Apr 2009 16:01:49 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-78519 when building a house a good rule of thumb is to multiply by 1.5 anything that you expect to spend in the "budget" session.. when building a house a good rule of thumb is to multiply by 1.5 anything that you expect to spend in the “budget” session..

]]> By: Jacquie Galea http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-65882 Jacquie Galea Thu, 01 Jan 2009 17:44:37 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-65882 I am totally confused, why would anybody build their own house if the price per square foot is what other people ($200 - 250 sq ft)are saying. It would be far cheaper to buy a resale or from a subdivision builder. We just bought a lot to build on in Ontario in the GTA and now I am wondering why. We were looking to downsize and save money, but it looks like it will cost as much or more to build a 1500 sq ft home as what we will get when we sell our 2300+ sq ft. home which is beautifully appointed and professionally landscaped with a finished basement and six car driveway. Anybody want to buy a lot in Newcastle? I am totally confused, why would anybody build their own house if the price per square foot is what other people ($200 – 250 sq ft)are saying. It would be far cheaper to buy a resale or from a subdivision builder. We just bought a lot to build on in Ontario in the GTA and now I am wondering why. We were looking to downsize and save money, but it looks like it will cost as much or more to build a 1500 sq ft home as what we will get when we sell our 2300+ sq ft. home which is beautifully appointed and professionally landscaped with a finished basement and six car driveway. Anybody want to buy a lot in Newcastle?

]]> By: Gwaine http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-29375 Gwaine Fri, 28 Mar 2008 14:54:37 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-29375 The pot light makes me laugh. Our builder wanted $250 per light. The 9 lights would have cost us $2,250. We bought a kit from Home Depot and did them ourselves for around $600 all up. The pot light makes me laugh. Our builder wanted $250 per light. The 9 lights would have cost us $2,250. We bought a kit from Home Depot and did them ourselves for around $600 all up.

]]> By: Saving Strategy: Avoid Upgrading Your House | Million Dollar Journey http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-29204 Saving Strategy: Avoid Upgrading Your House | Million Dollar Journey Wed, 26 Mar 2008 10:31:17 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-29204 [...] had every intention to keeping our house simple and even hoping to keep our expenses below the builder allowances.  That didn't [...]

[...] had every intention to keeping our house simple and even hoping to keep our expenses below the builder allowances.  That didn't [...]

]]> By: Best of Million Dollar Journey: Sept 2007 | Million Dollar Journey http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-13723 Best of Million Dollar Journey: Sept 2007 | Million Dollar Journey Fri, 05 Oct 2007 07:32:44 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-13723 [...] The Cost of Building a House (24 [...]

[...] The Cost of Building a House (24 [...]

]]> By: Craig http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11802 Craig Fri, 07 Sep 2007 15:58:37 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11802 For a point of reference, Vancouver costs about $130-$150/sq. ft. These prices are about a year old now, but they have been continuously climbing in recent years due to the labour shortage in the construction industry. If you can find someone, you are lucky if you can get them to reliably show up or even finish the job. Sometimes these contractors are floating between jobs and they service the highest paying jobs first. It sounds like we should all sell our houses in the big cities and move to the east coast :) For a point of reference, Vancouver costs about $130-$150/sq. ft. These prices are about a year old now, but they have been continuously climbing in recent years due to the labour shortage in the construction industry. If you can find someone, you are lucky if you can get them to reliably show up or even finish the job. Sometimes these contractors are floating between jobs and they service the highest paying jobs first.

It sounds like we should all sell our houses in the big cities and move to the east coast :)

]]> By: telly http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11759 telly Thu, 06 Sep 2007 21:30:19 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11759 Gates, I can tell you that wooden stairways will last 100 yrs (our hous is at ~90 now). I can also tell you that hardwood floors will last 100 years. Have a look at my kitchen and bathroom and you'll see they've both lasted 50 years (some days I wish they hadn't ;)). Like FT said, you will want to renovate at some point regardless of the materials used. Lots of homes that weren't constructed of marble are still around after 200 years, they're just not the homes of former Kings and Queens. Gates, I can tell you that wooden stairways will last 100 yrs (our hous is at ~90 now). I can also tell you that hardwood floors will last 100 years. Have a look at my kitchen and bathroom and you’ll see they’ve both lasted 50 years (some days I wish they hadn’t ;)). Like FT said, you will want to renovate at some point regardless of the materials used. Lots of homes that weren’t constructed of marble are still around after 200 years, they’re just not the homes of former Kings and Queens.

]]> By: nobleea http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11757 nobleea Thu, 06 Sep 2007 21:14:44 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11757 I have friends who are building houses at the moment. Their dream homes. But they are under 30, with no kids. Right now, they say these are the houses they're going to retire in. I think it's impossible to see 30-35 years in the future and make that claim. Granted, they are large, very nice houses, but circumstances and needs change. Perhaps my experience is influencing me. Being from a military family, moving every 3 years was the norm. In fact, the longest I ever lived in one home was 5 years, and that was in a rental ending last year. I have friends who are building houses at the moment. Their dream homes. But they are under 30, with no kids. Right now, they say these are the houses they’re going to retire in. I think it’s impossible to see 30-35 years in the future and make that claim.

Granted, they are large, very nice houses, but circumstances and needs change. Perhaps my experience is influencing me. Being from a military family, moving every 3 years was the norm. In fact, the longest I ever lived in one home was 5 years, and that was in a rental ending last year.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11756 FrugalTrader Thu, 06 Sep 2007 20:56:20 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11756 Gates, are you married? If your wife is anything like mine, then she'll definitely want to renovate when the styles start to fade out. Also, who says that you're going to live in the same house forever? Things change, life happens. Gates, are you married? If your wife is anything like mine, then she’ll definitely want to renovate when the styles start to fade out.
Also, who says that you’re going to live in the same house forever? Things change, life happens.

]]> By: Gates VP http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11752 Gates VP Thu, 06 Sep 2007 20:47:41 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11752 Hey guys, you've caught me in my own little circular loop. I have indeed pondered the costs of building a house in stone :) I think that my point was muddled here between two parts: 1. <b>What are you planning for the house?</b> This is pretty fundamental to how you pick your components and cost things out. 2. <b>What quality do you want?</b>: I've heard of 100+-year old marble staircases. They become so worn that the stone actually dips a little in the middle. When was the last time you walked on a marble staircase :) Build a wooden staircase and it won't last that long, of course, if you don't actually expect the home to be around in 100 years, then it probably won't matter. <i>So why go with really expensive, top quality stuff when it’s all going to be pulled out and renovated anyway?</i> B/c the point of top quality stuff is simply that you don't intend to renovate it very often. Build me a kitchen that's made to last 50 years and then I won't need to renovate, just upkeep. Marble counters, tiled floors, hardwood cabinets... There are homes in Europe that have been standing for hundreds of years, but we don't think that way when we build houses. Hey maybe it's just a pipe dream, but I'd like to build a house that lives longer than I do and hopefully longer than my kids too. Hey guys, you’ve caught me in my own little circular loop. I have indeed pondered the costs of building a house in stone :)

I think that my point was muddled here between two parts:

1. What are you planning for the house?

This is pretty fundamental to how you pick your components and cost things out.

2. What quality do you want?: I’ve heard of 100+-year old marble staircases. They become so worn that the stone actually dips a little in the middle. When was the last time you walked on a marble staircase :) Build a wooden staircase and it won’t last that long, of course, if you don’t actually expect the home to be around in 100 years, then it probably won’t matter.

So why go with really expensive, top quality stuff when it’s all going to be pulled out and renovated anyway?

B/c the point of top quality stuff is simply that you don’t intend to renovate it very often. Build me a kitchen that’s made to last 50 years and then I won’t need to renovate, just upkeep. Marble counters, tiled floors, hardwood cabinets… There are homes in Europe that have been standing for hundreds of years, but we don’t think that way when we build houses.

Hey maybe it’s just a pipe dream, but I’d like to build a house that lives longer than I do and hopefully longer than my kids too.

]]> By: nobleea http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11750 nobleea Thu, 06 Sep 2007 20:18:19 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11750 Exterior finishes can make a big difference in how long before it has to be redone. Oddly enough, the longer lasting finishes tend to be associated with higher quality. Brick, stone, metal all last long. Stucco, aluminum/vinyl siding do not and end up looking dated quite fast. The same goes for windows. Nice, all wood Anderson windows will age better than vinyl specials from home depot. But let's be realistic here...subdivision/tract homes are not designed to last 100 years. A custom built, architecturally designed home can though. Exterior finishes can make a big difference in how long before it has to be redone. Oddly enough, the longer lasting finishes tend to be associated with higher quality. Brick, stone, metal all last long. Stucco, aluminum/vinyl siding do not and end up looking dated quite fast.

The same goes for windows. Nice, all wood Anderson windows will age better than vinyl specials from home depot.

But let’s be realistic here…subdivision/tract homes are not designed to last 100 years. A custom built, architecturally designed home can though.

]]> By: FourPillars http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11745 FourPillars Thu, 06 Sep 2007 20:00:33 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11745 FT - I think an unfinished basement is a perfect project for a part timer DIYer, mainly because there won't be any time pressure to get it done. Rod - kudos for tackling a kitchen - that's one of the areas I would say a DIYer shouldn't do for the simple reason that it's too hard to go without a kitchen for an extended period of time. Another area is the bathroom if you only have one :) Gates - are you planning to build your house out of stone? Don't worry about top quality, the odds of you staying in one house long enough to see a brand new roof wear out is not very high. And who cares about paint quality, wallpaper and linoleum? That's just minor cosmetic stuff. Mike FT – I think an unfinished basement is a perfect project for a part timer DIYer, mainly because there won’t be any time pressure to get it done.

Rod – kudos for tackling a kitchen – that’s one of the areas I would say a DIYer shouldn’t do for the simple reason that it’s too hard to go without a kitchen for an extended period of time. Another area is the bathroom if you only have one :)

Gates – are you planning to build your house out of stone? Don’t worry about top quality, the odds of you staying in one house long enough to see a brand new roof wear out is not very high. And who cares about paint quality, wallpaper and linoleum? That’s just minor cosmetic stuff.

Mike

]]> By: Telly http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11743 Telly Thu, 06 Sep 2007 19:36:07 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11743 Gates, I'm not sure I understand your point. You mention that "homes are built to be completely renovated inside every 20 years" but you also say that you want a "top-quality" home. 100 year old homes still need to be renovated (paint, roofing, etc.) So why go with really expensive, top quality stuff when it's all going to be pulled out and renovated anyway? Generally people don't renovate because the materials are in rough shape, they usually renovate because 70's style wallpaper looks...well, like 70's style wallpaper. While it's true that the fireplace and trim in our 80+ year old house is great, the real wood cabinets from the 60's are not. Neither is the floor to ceiling (including ceiling!) tile in our bathroom! But that's just because beige/pink tile is not in but hardwood and original trim is. Remember, not long ago, hardwood was out and most people carpeted over it. Things change. As expensive and classy as marble is now, remember that it wasn't thought of that way not that long ago. Gates, I’m not sure I understand your point. You mention that “homes are built to be completely renovated inside every 20 years” but you also say that you want a “top-quality” home. 100 year old homes still need to be renovated (paint, roofing, etc.) So why go with really expensive, top quality stuff when it’s all going to be pulled out and renovated anyway? Generally people don’t renovate because the materials are in rough shape, they usually renovate because 70’s style wallpaper looks…well, like 70’s style wallpaper.

While it’s true that the fireplace and trim in our 80+ year old house is great, the real wood cabinets from the 60’s are not. Neither is the floor to ceiling (including ceiling!) tile in our bathroom! But that’s just because beige/pink tile is not in but hardwood and original trim is. Remember, not long ago, hardwood was out and most people carpeted over it. Things change. As expensive and classy as marble is now, remember that it wasn’t thought of that way not that long ago.

]]> By: FrugalTrader http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11741 FrugalTrader Thu, 06 Sep 2007 18:51:41 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11741 Guys, as I mentioned before, the $/sq ft does not include the cost of land. Gates, yes, the plan is to pre-wire every room with ethernet ... maybe even the bathrooms. ;) Guys, as I mentioned before, the $/sq ft does not include the cost of land.

Gates, yes, the plan is to pre-wire every room with ethernet … maybe even the bathrooms. ;)

]]> By: Rod Payne http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm/comment-page-1#comment-11738 Rod Payne Thu, 06 Sep 2007 18:47:32 +0000 http://www.milliondollarjourney.com/the-cost-of-building-a-house.htm#comment-11738 http://www.cbc.ca/money/story/2007/05/29/realestate.html I haven't taken the time to analyze the relative prices deeply (my employer does expect some productivity, you know). However, if average resale prices across Canada are comparable to $/sqft prices, then $90-95 in NL may not be out of line with the higher prices per square foot that we are quoting for points west of Atlantic Canada. http://www.cbc.ca/money/story/2007/05/29/realestate.html

I haven’t taken the time to analyze the relative prices deeply (my employer does expect some productivity, you know). However, if average resale prices across Canada are comparable to $/sqft prices, then $90-95 in NL may not be out of line with the higher prices per square foot that we are quoting for points west of Atlantic Canada.

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