Building a house question

[Jazn8]

Hi Guys

Im looking to build a house in Calgary. Im not sure how it works but i would like to know the procedure and how much money i would need. Also if anyone knows a good location in calgary to build it would great to hear aswell. I was looking SE near Auburn.

anyways please let me know if you have any suggestions
thanks

 

[Wish]

http://tinyurl.com/ye365xu

 

[Thomas Beyer]

QUOTE (Jazn8 @ Mar 10 2010, 05:58 PM) Hi Guys

Im looking to build a house in Calgary. Im not sure how it works but i would like to know the procedure and how much money i would need. ...
You buy a lot .. then design a house with an architect/design firm .. then approach a builder .. then builder builds for fixed cost or input costs + 15-18% management fee.

Money: you get an idea for lot price + design cost + construction cost .. then approach bank for a draw mortgage, usually advanced in 4 draws:
draw 1: lot purchase
draw 2: foundation in
draw 3: lock up (doors/windows in + lockable)
draw 4: house is finished

Assuming good income bank would lend up to 80% of this firm cost estimate based on actual lot price + design quotes + builder quotes. Thus 20% is required PLUS the ability to pay difference between draw 2 and draw 3 which is the biggest gap usually .. so about 35% to 40% of house cost !

Thus, if you lack this 35% to 40% of cost buy an existing home or spec home with 5% down .. or build slightly more expensively with a builder that also finances !

 

[RCrein]

I hope that you have owned a home before you undertake this project. There are a multitude of choices in terms of layout and materials and it helps to have some experience behind you to make these decisions with less deliberation and being sure the end result will be what you want. Once you sign off on the design, it is common to evolve your thinking as the project progresses or your partner sees a home design show. Change orders cost more than the original work, because the builder has to do some things over and they routinely charge a higher price for the work. Also make sure to prepare for delays, budget creep and have some funds in reserve for all the new furniture and landscaping ideas to follow. The better you understand your needs in advance; the greater likelihood of being happy in the end. Be prepared for some stress in you relationship while this is all unfolding. And one last thought, make sure you are comfortable with the marketability of the end product.

Best of luck with what might be one of your most rewarding projects.

 

[craigw]

If your looking in Auburn Bay in Calgary the developer is Carma. They sell lots to their approved builders. If you buy from one of these builders they will look after plans, permits etc. They will also give you a set cost. However once you start any extras add up very quick. When I build for peaple I always tell them the best way to control costs is make all your decisions in the planning stage and don`t make any changes once constuction starts (this can be difficult for peaple who can`t visualize the plans well). It is usually very difficult to buy a lot and build yourself in communities like this. But it never hurts to ask.

Craig Williams
WREN Developments