Swetch
Dryer sheet wannabe
- Joined
- May 18, 2020
- Messages
- 17
[SIZE=-1]My wife and I wanted to build a new home on some land we bought several years ago in PA.[/SIZE][SIZE=-1]
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[SIZE=-1][SIZE=-1]Though we have floor plans and elevation drawings[/SIZE], we had trouble finding an honest/reliable builder and so we gave up on the idea of building. Now we have come to a cross road... either build on it or sell it (because it has $3k+ in property taxes annually). We estimate the cost of building the home at $1.3M. With the land included, it would be a total cost of $1.6M. The house would be just over 5k square foot with a "colonial" style front porch and a 3 car garage and screened rear porch.[/SIZE][SIZE=-1][SIZE=-1]
Since we are less than 5 years from retirement (then at age 58), we are unsure if it makes much sense to build a home that we may not live in for very long and we're worried about the potential loss if we sold it after 10 years. Having watched the housing market in our area for the last several years, I haven't seen any homes sold within 1 to 6 years after completion that have sold for anywhere near the original price. The examples of homes that fit this criteria were between $800k and $975k and these appear to have sold for roughly $150k to $175k less than the original price. So it seems to me that we could be setting ourselves up to lose over $300k (perhaps as much as $400k) on our potential $1.6M build if we chose to move to a more tax-friendly state in 2031.
[/SIZE][/SIZE][SIZE=-1][SIZE=-1] I guess new homes are like new cars... you lose big money driving it off the lot.[/SIZE][/SIZE]
[SIZE=-1][SIZE=-1]Do you think I'm right about the potential loss we could face? [/SIZE][/SIZE]
[/SIZE]
[SIZE=-1][SIZE=-1]Though we have floor plans and elevation drawings[/SIZE], we had trouble finding an honest/reliable builder and so we gave up on the idea of building. Now we have come to a cross road... either build on it or sell it (because it has $3k+ in property taxes annually). We estimate the cost of building the home at $1.3M. With the land included, it would be a total cost of $1.6M. The house would be just over 5k square foot with a "colonial" style front porch and a 3 car garage and screened rear porch.[/SIZE][SIZE=-1][SIZE=-1]
Since we are less than 5 years from retirement (then at age 58), we are unsure if it makes much sense to build a home that we may not live in for very long and we're worried about the potential loss if we sold it after 10 years. Having watched the housing market in our area for the last several years, I haven't seen any homes sold within 1 to 6 years after completion that have sold for anywhere near the original price. The examples of homes that fit this criteria were between $800k and $975k and these appear to have sold for roughly $150k to $175k less than the original price. So it seems to me that we could be setting ourselves up to lose over $300k (perhaps as much as $400k) on our potential $1.6M build if we chose to move to a more tax-friendly state in 2031.
[/SIZE][/SIZE][SIZE=-1][SIZE=-1] I guess new homes are like new cars... you lose big money driving it off the lot.[/SIZE][/SIZE]
[SIZE=-1][SIZE=-1]Do you think I'm right about the potential loss we could face? [/SIZE][/SIZE]
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