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Old 08-14-2020, 04:52 PM   #41
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In my area, new condos sell for 600+ euros per sq. ft. while "used" condos in move-in condition sell for ~350 euros. I bought a fixer upper for 200 euros per sq. ft. last year and completely remodeled it to the tune of 150 euros per sq. ft. to get exactly what I wanted. It just didn't make any sense to buy new.
46 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions.
Current AA: real estate 64% / equities 10% / fixed income 16% / cash 10%
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Old 08-14-2020, 04:59 PM   #42
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We are in the process of building. Purchased lot, plans drawn up to our specs, elevation survey and septic permits completed.... then the August 84 lumber price sheet came out. Average 58% increase to all materials. OSB sheets went from $7/sheet to $21/sheet. The builder said the largest 1 month increase in material in his 15 years in business. Supply v. Demand issues due to you know what. We are holding off a couple of months to wait out this supply issue.
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Old 08-14-2020, 05:08 PM   #43
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Don't know if this will make the OP feel better, but the WSJ just ran an article about the newest interior design trends, and quoted an SF architect:

" costs in 2020, to date, are $700 to $900 a square foot, compared with $600 to $800 in 2018 for high-end homes, says Mr. Duff."
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Old 08-14-2020, 05:19 PM   #44
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Reminded somehow of our oriental carpet mentor who told us about customers who would come in to his shop full of antique Baluch and Kazak rugs and look around for awhile before asking if he didn't have any carpets that weren't used. I like old houses and old wood and things that have lasted for decades. Feel like most new things are so well engineered that they will last juuuust 10 years or until the newest fad sweeps the nation.
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Old 08-14-2020, 05:35 PM   #45
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Originally Posted by Aerides View Post
Custom home builds have always been more expensive than buying new construction or existing homes.

But now? Covid has created demand: People are realizing their home needs to be their everything. People are upgrading, adding on, moving to bigger ones.

Add to that the supply chain issues, delays with sub-contractor and permits, all builds will take longer which means more overhead - and the cost of raw materials is going up.

Best bet is to find a resale that meets the neighborhood and footprint requirements, the bones, the things that can't change. Then budget upgrades and changes.

I agree with this opinion as a former county employee who was involved in issuing building permits.

A custom house will cost a whole lot of money versus buying an existing house and then adding the upgrades and changes.

Generally a custom built house is for super rich people who have money to burn. They are super nice but you pay a whole lot of money simply because there are very few portion of the custom built house where you can save money. Converting an existing house is so much cheaper especially if you buy an existing house that was custom built to begin with.

I told customers the typical features of a custom built home that you do not see in a tract home: (1) A master bedroom suites with two separate toilet rooms so the wife does not get upset when the husband forget to lower the seat. (2) Naturally the guy bathroom has wiring for the guy to watch TV while sitting on the toilet throne. (3) The garage should also be supersized for additional space for a man cave. Some guys like to spend a lot of time in the garage. In addition, the head space in the garage is high enough to install a hydraulic car lift. (4) The kitchen should have a walk in pantry plus a walk in refrigerator.....or at least space to fit two refrigerators since a single refrigerator home is substandard. (5) Room to build a separate in-law unit for a live in maid. (6) swimming pool should be indoors or partially protected from leaves or debris.

I learned a lot on how the rich people live. However, all of this cost money. The best you can do on a limited budget is to get some of these features.
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Old 08-14-2020, 05:36 PM   #46
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Maybe you should wait and try real estate market timing :-)

Seems to me just a few months ago some of our forum’s real estate experts decided our homes values would all soon be collapsing as us boomers got old, and the next generation wouldn’t want them.
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Old 08-14-2020, 05:58 PM   #47
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I lean toward asset protection as an explanation. My grandfathers house was between $2k-4k in 1928. My dads house was 20k-40k in 1973. My house ran between $200k-400k in 2015. They were different styles, but all in the 1600 - 1800 sf range. The dollar dropped in value. The house did not go up. I suspect house prices are soaring for the same reason as stock prices. It's time to pay the bill for the last 50 years, so the dollar is shifting down.

I have no idea what to do with 1800 sf when I had a family, much less 2700. I suppose i would rent out the extra rooms.
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Old 08-14-2020, 07:00 PM   #48
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Here in WNC materials costs have gone up about 50%. Had a builder sign a contract to build a house in our neighborhood, then material went up and he had not done a cost plus contract. Now he cannot afford to meet the contract price.
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Old 08-14-2020, 07:18 PM   #49
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In the affordable areas of Maui it is $200 to $250 a square foot. In the unaffordable areas it is $600 to $1500.
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Old 08-14-2020, 07:40 PM   #50
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Originally Posted by morriss003 View Post
In the affordable areas of Maui it is $200 to $250 a square foot. In the unaffordable areas it is $600 to $1500.
Where are the affordable areas? Wailuku? Hana? Hard to fathom $1,500, even in Wailea!
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Old 08-14-2020, 07:45 PM   #51
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Some of you have been helping me dream about my kitchen remodel on another thread. Sounds like I need to keep dreaming and planning before actually putting hammers to nails. This has got to calm down. It is crazy.
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Old 08-14-2020, 10:30 PM   #52
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We are in NW Ohio and are planning an addition. I know materials are high now, we're shooting for spring. I have a friend that is a builder for probably 20,25 years. Looked at the plans with him and he's at north of $200/ sf. He said they are busier than they have ever, ever, been. So like someone said, supply and demand. Hope it let's up by spring.
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Old 08-14-2020, 11:28 PM   #53
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Originally Posted by HI Bill View Post
Where are the affordable areas? Wailuku? Hana? Hard to fathom $1,500, even in Wailea!
Kapalua is always the most expensive. Least expensive are some Hawaiian Homeland homes ($100) built at cost.
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Old 08-15-2020, 03:16 AM   #54
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I would not sign a new contract to build right now when material costs and labor costs are so inflated versus what they were just 8 months ago.

I got a great deal on a large construction contract I signed in December 2008 and I signed then specifically because the GC and his subs were hungry for business.
I remember when I went to pick cabinets from Home Depot early in 2009 what an incredible deal those were as well.
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Old 08-15-2020, 10:29 AM   #55
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2017 Dallas TX area. Decided to downsize from our 1.5 Acre 3200 sq 12 year old home.

Reasons 1) Tired of mowing, 2) A lot of things were starting to need upgrade/ repair. (Paint, AC --(Summer Electric +400) Appliances (DW wanted all new fancy kitchen) Wood floors in need of revamping.. Just a lot of things . I figured 80K to do all of the changes and still end up with a 12 yr old low efficiency home. Sold for $420

Downsized (Ha Ha) to 2800 in a zero lot line community, HOA full yard upkeep.
Lot 67K Custom Build (I way underestimated real cost with new .. ) Build $390K Total $457K /So much for downsize savings / Currently on County books at $485.. Have to say the new construction materials and features are great to have. AC bill in heat of summer never more that $120 --Homes are way more efficient. No more yard work or equip. DW happy!!

Was it worth it? If it doesn't break the bank. YES-- I don't anticipate any major maint issues for 10 years. By then who knows..
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Old 08-17-2020, 03:42 PM   #56
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As mentioned above, inflation is coming, Dollar is losing value, it should be a good time to buy a home or upgrade to a better one to hedge against the above especially in the zero interest rate environment. Cash is losing value quickly, stock and bonds are on paper and not safe, Gold is not easy to deal with.

This is part of the reason why Real Estate is appreciating at this time.
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Old 08-27-2020, 07:31 AM   #57
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Originally Posted by Offgrid Organic Farmer View Post
After I retired, We bought bare land and started construction in 2005.

When it was all finished [including solar power], our 2400 sq ft house cost us around $31 per square foot.
Wow, amazing "job"!
Put job in quotes because you're retired!!

$31/sqft AND solar power, WOW!!
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Old 08-27-2020, 07:51 AM   #58
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You can't even make a tent for $31 a square foot these days.
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