Don’t want to buy an existing home? Then purchasing one of the newly built luxury homes in your area is a great alternative. There are many reasons people decide to purchase land: building a house, farming, ranching, and speculation purposes, to name a few. Once you determine the reason you want the land, then you can begin the process of evaluating the pros and cons of acquiring it.
Pros of Constructing Luxury Homes on Raw Land
Luxury houses are typically built on land that is outside of a major metropolitan area. For individuals that value privacy and dislike busy street noises, the quiet outskirts of the city is a welcomed environment. The layout of a new house is usually quite spacious and can be expanded outward or upward depending on your preference. Other customization options also include modern amenities such as whirlpool tubs, kitchen appliances, and skylights. Renovation and maintenance fees are also significantly lower in new structures when compared to older structures.
For example, the lawn on an old place may have mature weeds, shrubs, plants, and grass. Depending on the level of overhaul required and your desired end result, the cost of renovating your landscape can easily cost at least $1,000 to $8,000. Creating a new landscape and living structure can cut that cost in half.
Cons of Constructing on Raw Land
Many of the cons of purchasing raw land are derived from the additional cost required to develop it. In other words, the majority of your budget will be spent on due diligence, conversion, and carrying cost. Due diligence is the research required on your end in regards to the land you’re trying to purchase. A costly part of this process is contacting a real estate agent and traveling out to evaluate the land. Conversion cost deals with the fees required to make the land habitable, which includes making sure a proper water and sewage system are in place. Lastly, carrying costs are interest payments on your loan and property taxes. Let us not forget to mention that the cost of commuting to work, the store, or any place within the city will be higher.
How much does it Cost to Build Luxury Homes?
Now that we’ve talked about the prices associated with the land and commute, we’ll change direction a bit and talk about how much it will cost to build the house. First off, luxury houses are not determined just by the size of its structure. A structure that is over 5,000 square feet and made with expensive material is actually referred to as a mansion. Mansions are just one type of luxury house. In fact, what truly defines these types of structures are the architectural significance, superior design, and location. Therefore, you can save on cost by not going ‘big’ but by going ‘unique design’ instead. Expect to pay $250 to $300 per square foot on average. You’ll also need to hire an expert architect to create an innovative design for your house. The architectural fee will cost between 12 to 20 percent of your total budget.
The ultimate factor that will determine whether you should put in the time and pay the fees required in buying new land and building luxury homes is your pocketbook, so budget wisely.