How much does it cost to build a house reddit

I know it seems ridiculous to ask such a general question but Im fresh out of Uni and Im trying to think ahead. I already know I don't want to buy a house but custom build it. Not me of course, but through a homebuilder or company. Assuming I already have the lot, what websites/sources can I go to in order to get examples of what it costs to build a house of a certain square footage and style?

level 1

Been looking into this for awhile and gathering information. This is all a general idea and I’m probably missing something.

Land can cost anywhere from 50K to more than a new built home, depending on where.

Running utilities, if they’re to the property line, is probably in the thousands from what I’ve gathered.

Basic foundation (no basement) 10-20k or a basement is 2-3x that.

Building the home can vary a lot. I’ve found a modular builder that will crane and finish a home on the lot for 175k and prices go from that, even certain modular places can be over 300k and if you go for a stick-built home you’re probably looking at 300k starting for a small home these days.

And that’s mostly unfinished interior, so then you need to work on that. And the driveway, and the decks and a garage, etc

All in, expecting to spend 300k for a smaller modular might not be unrealistic. If things go your way it could be less, but I wouldn’t hold my breath necessarily...

level 2

Which modular builder did you find will crane and finish the home in the lot got $175k??

level 2

where you finding land for 50k lol

level 1

No less than 500 grand for sure! The price of lumber is insane

level 2

Why is it so expensive now?

level 2

dont need lumber concrete

level 2

oh wow thank you for all the tips!

level 2

1.79! That seems crazy low

level 2

I know this is way after you posted, but how did you sever 2 acres? My in laws have a farm in southern Ontario and they would probably be down with selling us an acre lot if we could sever it.

level 1

I've been researching this and it looks like anywhere between $300-$400 /sqft + land associated costs. Also, i've recently heard that we have a shortage of building materials because of the craze in housing and you could end up paying a lot more or waiting a while.

level 2

What are your thoughts on waiting? I was going to build this summer but a person I trust has convinced me to wait a year so things cool off....Covid seems to have the market crazy all over, but I’m only 75% convinced.

level 2

Additionally, there seems to be a shortage of trades people, so most new builds are generally 3 -5 months behind schedule waiting for final completion (not to say the home wouldn't be move-in ready prior).

The reality is, when we build our home, it took weeks to months to confirm drywallers, painters, electrician, tiler, roofer, etc. We did a custom build, so didn't have 20+ projects on the go like many other builders. The tradespeople will follow where the money is, so if they can bang out more money from a developer doing 20 homes, compared to one project, they'll likely take that job first and put yours aside. Other tradespeople can't do their job (even if they're scheduled on a specific date) before other trades have been completed first.

level 1

Depends if you can get a construction mortgage. The loan amount is based on the value of the home once it is completed. If you have the income to service a mortgage, it is far easier than most would think.

If you own the land free and clear, it is quite simple, as the land acts as existing equity. If you still need the buy the land, you need enough cash for the first phase of construction (foundation at minimum) as construction financing happens through a draw schedule. This is assuming you go with an A lender (low interest rate).

If you go private financing you need a lot less capital. You will be paying a higher rate (6-10%), but it is a lot less complicated. Once construction is done, refinance with an A or B lender for lower rate and you are good to go.

This all depends if you can find a bank or broker knowledgeable about construction financing. :)

level 1

First, I would suspect you will likely pay between $80 - 150k for a land lot to build on.

Once you obtain the proper permits for building and architectural plans approved, you'll likely spend easily ~$400 - 550k on a basic bungalow to be built (including a garage, basement, 2 bedrooms, 2 baths, deck, etc.). It also depends how much you're able to contribute towards a mortgage loan.

You may not want to completely finish your basement the first few years if you don't plan to use the space immediately.

If you plan on including additional upgrades (countertops, flooring, windows, crown molding, landscaping, etc.), you'll likely put in another $100k+ easily.

level 1

Depends on a lot. But on the cheap side you’re probably looking 300-400, high side, infinity.

But remember most of it has to be your own cash. Also that number is a really ballpark number. Getting a contractor to do it? 400-500 maybe?

*not a contractor, have never built a house, just going off my google searches over the years and what I’ve estimated for myself

**not including the crazy development fees in york region

*** also not including lumber being 3-4x the cost it was last year. Or covid slowing down times & ruining productivity. Or the price of the land you have to buy

level 2

300-400, 400-500 per sq ft? Or hundreds of thousands total?

level 2

Hi thanks for the response. Why is lumber 3-4x the cost it was last year? Do you think it will go down?

What is the cheapest price to build a house?

Is it cheaper to build from scratch?

When building a house what costs the most?

How much money do you need to build a house in Ontario?