If you had $4M, would you spend $2M of it building a house?

[Lucantes]

Absolutely not, spending 50% of our Net Worth on a house would be a non-starter for me. We recently just moved, and we purchased the new construction house for about 11% of our Net Worth. With the new pool we're putting in it's still only 13%.

 

[Golden Mean]

I would spend $2M (or $1.4M) of $4M in a heartbeat (if I had it), BUT it would be 75% of the money for land and 25% for the building(s). $80k would go a long way if I didn't have rent/mortgage.

So, I guess my answer is no? I'd spend $500k on a house?

 

[RetiredHappy]

I would spend $2M (or $1.4M) of $4M in a heartbeat (if I had it), BUT it would be 75% of the money for land and 25% for the building(s). $80k would go a long way if I didn't have rent/mortgage.

So, I guess my answer is no? I'd spend $500k on a house?

With the way construction costs go, there is no way you can build a custom home for $350K for 2700 sq ft, at 25% of the $1.4M sticker. Where we live, the going rate for custom home is $700 per sq ft, which would come up to $1.89M for a 2700 sq ft home. If cost to build in Tennessee is much cheaper even at $350 per sq ft, building cost is already $945K, and that's not counting the extra workshop and garage space.

 

[Golden Mean]

With the way construction costs go, there is no way you can build a custom home for $350K for 2700 sq ft, at 25% of the $1.4M sticker. Where we live, the going rate for custom home is $700 per sq ft, which would come up to $1.89M for a 2700 sq ft home. If cost to build in Tennessee is much cheaper even at $350 per sq ft, building cost is already $945K, and that's not counting the extra workshop and garage space.

Makes sense. Though I didn't realize there was a min. sq ft size house as part of the question.

 

[Route246]

The actual building costs are not what drives the initial tax assessments.
Our permit has two valuations per SF:
$165.67 for the finished living spaces on two floors.
$31.50 for everything else. This includes the carport, the balconies, and unfinished basement.
I personally can build it for less. Most people use $220 per ft these days.

I guess locationlocationlocation matters with the cost to build. Here in NorCal $500 is the minimum you need to build because of the cost of labor and materials.

 

[RetiredHappy]

We have never built a custom home because it costs more to build than to buy an existing custom or newly built tract home. There are expected surprises - delays in construction, things that can go wrong and running way over budget. I am always afraid that one of us will die before the home is built. Now, if I am in my 30s and have beaucoup bucks, I would probably do it.

 

[Music Lover]

There are only so many ways to layout a house. If it was me, I'd buy an existing house that's 90% of what I want and then just do a couple renos.

 

[UncleDave]

if you anticipate only living on investment proceeds I absolutely would not. We bought a 500k home last year leaving us with 2.5m in investments, but more importantly we have over 100k in annual income from pensions and SS.

 

[RetiredHappy]

Makes sense. Though I didn't realize there was a min. sq ft size house as part of the question.

OP's plan is 2700 sq ft living space, with 2 other attachments. Not about "min. sq ft size house".

 

[Texas Proud]

Not my thread but I read some about cost of land.... OP already has the land...

It is only home and other building construction being asked..

 

[bs300]

Why do you prefer the ICF method and how would that cost compare to conventional construction?

 

[skyking1]

Why do you prefer the ICF method and how would that cost compare to conventional construction?

ICFs cost is comparable to buying the form plywood and the intense labor to put it up. The end result is no 100 pound a sheet form plywood to strip off and scrape, and the resulting wall has R26 insulation value.
My body does not like handling that heavy plywood. My nieces and nephews wll be able to help with the ~5 pound blocks. It will be a fun weekend to stack the walls.

 

[427Vette]

Why do you prefer the ICF method and how would that cost compare to conventional construction?

ICFs cost is comparable to buying the form plywood and the intense labor to put it up. The end result is no 100 pound a sheet form plywood to strip off and scrape, and the resulting wall has R26 insulation value.
My body does not like handling that heavy plywood. My nieces and nephews wll be able to help with the ~5 pound blocks. It will be a fun weekend to stack the walls.

I think maybe what bs300 is asking about is conventional stick framing vs the ICF method. I too am curious about this. I’ve worked on buildings/houses that are built using ICF. There is no doubt they are a sturdy, efficient lifelong building option. However the hassle of every other step along the way because of them is a deal breaker for me. Every time you need to penetrate a wall it’s a struggle. The plumbing, wiring are also a struggle. Anytime in the future if you want to remodel again you have a massive struggle. To me it wouldn’t be worth it.

 

[skyking1]

I guess I'm not getting it because I would never put any plumbing or wiring into a concrete ICF external wall. All of the internal walls are going to be framed and that's where you put that stuff.

 

[427Vette]

I guess I'm not getting it because I would never put any plumbing or wiring into a concrete ICF external wall. All of the internal walls are going to be framed and that's where you put that stuff.

You are not going to have any outlets or switches in your external walls? Usually a kitchen is on an external wall or two. They are full of outlets, switches, appliance wiring, cabinet lighting etc. How about any outdoor faucets or outlets, vents for dryer and mechanical systems, line set for air conditioner etc etc. Maybe all that stuff is going through the soffit or roof?

 

[skyking1]

wiring is really easy. take a cheap cordless electric chainsaw and drill a hole through the bar, in my case 2.5" from the tip.
Put a piece of all thread rod about 6" long through it and double nut it so it sticks out each side.
Cut slots for wiring in the foam. The bolt will set the right depth, just above the concrete.
mark and cut out boxes.
Outdoor faucet? rotohammer a hole in the concrete.
Same with an outlet outside.
Dryer vents don't meet energy codes here, but it would be the same.
Don't work too hard, either.
In new construction, put a 4" sleeve inside the wall *BEFORE* yoo pour it.
For that outlet or outside faucet, ditto.
Line set, ditto. Put a sleeve in.
Place it inside the block as you set it. put a couple of screws through the foam to both fix it and give you some metal for one of those stick metal detectors, so you can find it behind the drywall for one of those "Just in case" spare sleeves. Always make notes and as-builts.
Put an extra sleeve in here or there. It does not effect the strength of the wall. We do it all the time in commercial construction.
Pex can be slotted the same way, and 1.5" pipe for a sink.
Use an air admittance valve for sink vent where you can.
do not get an Oatey or off brand, get the original Studer Vent.


EDIT for clarity. I am not building all the way up with ICF. I am just doing the basement concrete myself, and then building a traditional lightweight framed house above. I am used to that and comfortable with it.

 

[427Vette]

wiring is really easy. take a cheap cordless electric chainsaw and drill a hole through the bar, in my case 2.5" from the tip.
Put a piece of all thread rod about 6" long through it and double nut it so it sticks out each side.
Cut slots for wiring in the foam. The bolt will set the right depth, just above the concrete.
mark and cut out boxes.
Outdoor faucet? rotohammer a hole in the concrete.
Same with an outlet outside.
Dryer vents don't meet energy codes here, but it would be the same.
Don't work too hard, either.
In new construction, put a 4" sleeve inside the wall *BEFORE* yoo pour it.
For that outlet or outside faucet, ditto.
Line set, ditto. Put a sleeve in.
Put an extra sleeve in here or there. It does not effect the strength of the wall. We do it all the time in commercial construction.
Pex can be slotted the same way, and 1.5" pipe for a sink.
Use an air admittance valve for sink vent where you can.
do not get an Oatey or off brand, get the original Studer Vent.

I am not saying it can’t be done, it’s just a hassle. I’ve had it happen where I stub a sleeve out and when I get back it was blocked for some reason or another. It is so much easier to chuck up a hole saw or a spade bit and drill through OSB sheeting than to fire up the hammer drill, jackhammer, core driller etc. I don’t think I’ve ever done an ICF job where I wasn’t busting concrete out at some point.

Most inspectors in my area required the electrical to be ran in pipe in the slotted out ICF forms. This just complicated things further. It was difficult to get the boxes anchored to the uneven concrete so they were straight. Also tough to get the box to mount flush with finished wall because of the inconsistencies in the concrete. Also difficult and time consuming to run the pipe and anchor it accordingly.

Like I said above it’s a very strong and efficient way to build but I have no interest because of the things we are discussing. The ICF method is obviously very good at stopping any infiltration. However I am not sure how much infiltration there is in a stick framed wall sheeted with OSB using Tyvek and poly with spray foam anyway. I think the infiltration comes in around doors and windows not properly taped and sealed.

 

[skyking1]

In my case I will have outlets and there is one walkin basement door for me to cut in a light switch, and also sleeve out for a light if I want it. Not too much trouble for me. Everything else comes up in the slab.
Contrast these hassles with my friend's log cabin. Everything is the finished product. It is a nightmare!

 

[skyking1]

Most inspectors in my area required the electrical to be ran in pipe in the slotted out ICF forms.

Why? is it the wire against the foam? In that case use the armorflex wire.

 

[427Vette]

Why? is it the wire against the foam? In that case use the armorflex wire.

Mostly because an inspector told me once “I am the authority having jurisdiction and I said so”! Arguing with those types are like wrestling a pig in mud.

If I remember correctly it was that we couldn’t get the distance from the finished wall that we needed. MC cable would have worked but it was a kitchen and we had multiple circuits everywhere. We needed several wires in each pipe.

 

[skyking1]

sounds like.....not fun.

 

[Heather G]

You said you have no family or friends, but I don't see a guest bathroom without going through a bedroom or your mancave. You may find yourself with friends or house parties down the road and will wish you had at least a 1/2 bath off the main living area one day.

 

[skyking1]

Yeah the half bath would be the ticket. You don't want the door of that half bath opening on to a kitchen or dining room. That's kind of crude. It's best to put them just around the corner. Mine's barely that way but I hope enough

 

[NameTaken2]

No.

 

[jekbrown]

No, because it's highly likely that your $2M house will wind up being $2.5-3M by the time you live in it. That's a huge bite. ICF is the way to go though, so kudos there. Wife and I plan on building a 900-1000 sq ft retirement place with it. Detached shop can give me extra room and storage. I don't want to pay zillions in property taxes on a giant house or have to maintain it in retirement either.