Consider two investors just getting started. One wants to build and is in principle opposed to buying existing structures; the other is only interested in buying.
Which will come out on top?
I know that most will say beyond doubt the buyer, but wanted to see if anyone had perspectives on how the builder might grow faster?
@Martin D.for reference purposes what are you using as the comparable cost per square foot for building vs buying? It’s possible to build a duplex for $100-$110 per sq ft. That includes wall coverings and floor coverings. I don t see any properties in N AZ at under $200/ sq ft.
Not a single contractor I've spoken to in the Verde Valley can build for less than $300/sqft. And that's on the very cheap low-end quality build. If you want something nice it quickly jumps up to $500/sqft. You can buy in Sedona for $400/sqft, FYI. Without 3 year of headaches dealing with permits, regulations, and inevitable delays.
Even when pulling crews from Phoenix with cheaper labor costs, I end up paying about the same in the end because of time lost in traveling back and forth.
@Martin D. ok, describe what you mean by cheap low end build. Describe what materials constitute making it a “nice, quality” build at $500/ sq?
I'll opine as a long time builder. Higher end generally means the finishes...wood or engineered wood flooring, custom cabinets and vanities, pantries, tile or stone shower enclosures w/glass doors, vaulted ceilings, stone countertops, larger electric panel, more plumbing and electric fixtures and locations, better HVAC (Mini-splits?) and just a lot of time spent on extras like built-ins and personal touches. Custom siding, metal roofing, multiple fireplaces, larger kitchen with more appliances and such.
Contractor · Sheboygan, WI · Member since 2016 · 917 posts · 266 votes
3y
@Bruce Woodruff as I thought.That’s a comprehensive list. All those items combined do not increase construction costs from $125/sq ft to $500/sq ft. Or increase cost from $125-$250/sq ft for a STVR. A lot of the coverings mentioned can be replicated with epoxy resin coverings; countertops, vanities, shower surround, accent walls. Thank you for your comprehensive list.
@Bruce Woodruff as I thought.That’s a comprehensive list. All those items combined do not increase construction costs from $125/sq ft to $500/sq ft. Or increase cost from $125-$250/sq ft for a STVR. A lot of the coverings mentioned can be replicated with epoxy resin coverings; countertops, vanities, shower surround, accent walls. Thank you for your comprehensive list.
Ah, but I've seen these types of items increase SF cost waaay more than that. It depends on the client's pocketbook and their desires. I'm not sure what your point is...?