Home, Land, Property Buying and Selling - Should I Build a New Home?
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Rodent
11-11-07, 01:21 PM
I have a small house built in 1920 in a nice historical neighborhood. I am in the process of remodeling, but before I go to far I would like to have an idea if I am better off rebuilding the whole house. Because the neighborhood is historic, specific city building codes will apply.
Some basic ballpark numbers:
-Current Value-
House (1450 sq. ft.): $50,000
Land (0.2 acre within the city): $200,000
Cost of remodel: Front room-10k, dining room-10k, 3 bedrooms-20k, kitchen-30k, bathroom-25k.
In the end I will spend 95k to rebuild and I will have a small house that I spent 95k on but still has only 1 bathroom and 1450 sq. ft. of living space. I don't think if I sold the house I would recoup the money I put into it.
If I rebuild I figure I can build two story house with 2 bathrooms and 4 bedrooms with a full basement within the same footprint for ~$300,000. I think the finished house would be worth about 600,000 giving me around $100k in profit if I sell (which I would likely need to do because I couldn't afford the payments).
Does anyone see any obvious holes in this plan? Does anyone else have any experience with doing this?
Some basic ballpark numbers:
-Current Value-
House (1450 sq. ft.): $50,000
Land (0.2 acre within the city): $200,000
Cost of remodel: Front room-10k, dining room-10k, 3 bedrooms-20k, kitchen-30k, bathroom-25k.
In the end I will spend 95k to rebuild and I will have a small house that I spent 95k on but still has only 1 bathroom and 1450 sq. ft. of living space. I don't think if I sold the house I would recoup the money I put into it.
If I rebuild I figure I can build two story house with 2 bathrooms and 4 bedrooms with a full basement within the same footprint for ~$300,000. I think the finished house would be worth about 600,000 giving me around $100k in profit if I sell (which I would likely need to do because I couldn't afford the payments).
Does anyone see any obvious holes in this plan? Does anyone else have any experience with doing this?
Integrator97
11-11-07, 02:00 PM
Well, you didn't tell us where you are. But if your house in in an historical area, and you have restrictions on what you can do to it, is it even possible to tear it down and rebuild? Or are you talking about selling and buy a lot somewhere?
Other questions are: How do you feel about living in the house with it's historical feel? Is it big enough for you now and in the future? How long are you planning on living there if you remodel.
Investment aside, I'm of the mindset that if you are going to stay there a long time, you should do it how you want, a screw the payback formulas. You're talking about your comfort and enjoyment over a long period of time.
Other questions are: How do you feel about living in the house with it's historical feel? Is it big enough for you now and in the future? How long are you planning on living there if you remodel.
Investment aside, I'm of the mindset that if you are going to stay there a long time, you should do it how you want, a screw the payback formulas. You're talking about your comfort and enjoyment over a long period of time.
mitch17
11-11-07, 02:08 PM
Building a home with payments you can't afford isn't a good idea. Sounds to me like you're not happy with what you have, I'd put it up for sale and try to move into something you like.