Closing on some land about a half an hour a way on Monday. Start of the "dream" my wife and I have for a new house and some property to hobby farm. We would like to build the house, and soon, but clearly that is not the best thing to do with high material prices and labor shortages everywhere. So we talked about waiting at least a year to see what things look like and in the mean time really honing in on a house plan and interviewing builders. I gave up my idea of building a shop at the same time and instead we are going to put the money into a rear walkout full basement since the land is shaped well for it and I can put one or two bays downstairs to go with the attached garage at grade.
So where do you all think this would go? I know mortgage rates are going to creep up but if things like glazing are up 300% right now versus a couple years ago and lumber is still falling then it seems like there will be a crossover point somewhere in the next couple of years where materials will settle and financing rates will not increase that much to make it the "right time" to get a construction loan to start building. I got one data point yesterday from my own realtor who is also trying to get started with the same thing that had a 3500sqft home quoted at ~$600k (and she owns the land already). They also want the full basement which I know is a large single cost item. At $171ish per square foot that puts what we want to build (something around 2200-2400 sqft) at north of $400k. Holy crap, we own the land!
We talked about possibly doing a couple things in advance like clearing the building site, possibly getting temporary power and putting in a well so that we can "visit" the property and make some use of it but then that might not be worth spending cash on and instead rolling it all into the construction loan. I would love to do some of the work on the house but it seems a lot of lenders do not allow the owner to be the GC anymore and quite frankly with a full time job and an infant in the house I see no free time to do things during construction to really make a dent in the cost.
Since we need a place to live we are staying in our house with plans to rent it out afterward which means I need to do a few things to ensure it is up to snuff and reliable as a rental; things I generally need to do anyway but we were putting them off because we want to build a house. Now that unclear timeline is a little less fuzzy.
Opinions? Thoughts? Worst case I will cut a couple trails on the property so I can go play around on it but that is not nearly as satisfying as watching a house come out of the ground.
Side question for anyone that has a clue; I want to do a poured concrete steel deck for floor of the attached garage and pour the foundation walls around the perimeter so I can put the shop bays directly underneath it (doors turned 90° to the rear). Stuff like this is done for smaller parking decks as well as houses that have "safe rooms" and storage rooms under the front porches. I know it can be done but does anyone have any experience with that?
So where do you all think this would go? I know mortgage rates are going to creep up but if things like glazing are up 300% right now versus a couple years ago and lumber is still falling then it seems like there will be a crossover point somewhere in the next couple of years where materials will settle and financing rates will not increase that much to make it the "right time" to get a construction loan to start building. I got one data point yesterday from my own realtor who is also trying to get started with the same thing that had a 3500sqft home quoted at ~$600k (and she owns the land already). They also want the full basement which I know is a large single cost item. At $171ish per square foot that puts what we want to build (something around 2200-2400 sqft) at north of $400k. Holy crap, we own the land!
We talked about possibly doing a couple things in advance like clearing the building site, possibly getting temporary power and putting in a well so that we can "visit" the property and make some use of it but then that might not be worth spending cash on and instead rolling it all into the construction loan. I would love to do some of the work on the house but it seems a lot of lenders do not allow the owner to be the GC anymore and quite frankly with a full time job and an infant in the house I see no free time to do things during construction to really make a dent in the cost.
Since we need a place to live we are staying in our house with plans to rent it out afterward which means I need to do a few things to ensure it is up to snuff and reliable as a rental; things I generally need to do anyway but we were putting them off because we want to build a house. Now that unclear timeline is a little less fuzzy.
Opinions? Thoughts? Worst case I will cut a couple trails on the property so I can go play around on it but that is not nearly as satisfying as watching a house come out of the ground.
Side question for anyone that has a clue; I want to do a poured concrete steel deck for floor of the attached garage and pour the foundation walls around the perimeter so I can put the shop bays directly underneath it (doors turned 90° to the rear). Stuff like this is done for smaller parking decks as well as houses that have "safe rooms" and storage rooms under the front porches. I know it can be done but does anyone have any experience with that?
