Small Homes
Out of context: Reply #5
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- monNom0
Haven't done this myself but did help to build the family home out in the middle of nowhere, and I also have a relative who operated a number of large home-builders in a big city.
Here are a couple of choice rules of thumb and things to consider that I've gleaned over the years.
Expect the cost of a finished lot ready to build on to be at least 5x the cost of the raw land. That's based on developing a subdivision, so for a small rural plot for one home, getting road access, electrical, plumbing (likely septic or a bioreactor) might well exceed that. Of course, if you buy a million dollar acreage, that skews the numbers a bit, but its still handy to know how expensive site prep is relative to land cost. Better to buy a prepared lot, or a teardown with good services. At least you know your cost then.
The foundation is 1/3 the cost of a house. the walls/roof/windows are 1/3, all the rest inside is 1/3. So if you're looking at a 30k prefab box, 2x that for foundation and interior finishes. (also note that stickbuilt on site is usually cheaper than prefab).
As a rule of thumb, you want the house to be 2x the cost of the lot to maximize your return if you decide to sell... Not everyone wants a tiny home, nor a mansion on a postage stamp. If you plan to sell in the future, think what the average person might buy.
Any land without proven water is a huge gamble. You can spend thousands on drilling wells and not find anything. (we had a neighbour drill 500' and still no water, they ended up piping it in from another house a half kilometer away.), Land with proven water is always going to be more expensive.
A large rural property is a lot of work to maintain. If you have an acreage out in the country, you will likely spend most of your weekends working on it. You will eventually find that you want a tractor, and a chainsaw.
Don't neglect to consider heating fuel availability. If you can only get electric for heating, the bills will absolutely slay you. Propane is also expensive. If wood, there's a lot of labour involved, and can make you uninsurable. Natural Gas would be ideal if it's in the area.
Consider availability of broadband, and cell coverage. Lots of rural places have poor or no coverage.
Consider amenities. Can you get food/gas reasonably close? is there a hospital nearby? Does the area shut down in the off season, leaving you without access to some necessities? How long does it take for the roads to get plowed? Is there a fire department, and even if there is, can you get insurance on your home?
Lots to consider, but the benefits can definitely exceed the costs if you choose well. If I were to do it, I'd look for a cheap home that needed some work rather than start fresh. Often existing homes couldn't be rebuilt today due to changes in zoning/building codes, so you can get grandfathered on some spectacular locations (close to water's edge, atop a cliff, etc.)