Typical ROI For Spec Homes/remodels Now Adays
Just wondering ,locally in NJ , or elsewhere what return on investments are like for funding spec homes in this market. looking at luxry right now 1 -1.6 M range.. but interested in all price ranges..
Anybody? just gathering data for personal knowledge..
No one.. Bueller Beuller
Yeah, I think ITB is right which is why nobody is responding. Unless you have a really peculiar niche market someplace I think you better pack this plan in.
Spec homes is risky right now. Why build when you have a surplus of foreclosure and short sale.
I think it depends on teh area, but where I am the builder/buyer pays for the utililty connections. Do they allow septic in your area?
You may have found the reason this property (or properties?) is in foreclosure. You need to find an expert to see if resale will be an ongoing issue. County tax assessments, etc., may also be an issue (and possibly services (e.g. trash collection?) in county A vs. county B.)
Is there enough land to put in your own well/septic?
There is not enought land for well/septic tank. The city also suggested that I hire an engineer so we could find a way to tap in, which I thought was their job. They told me it could get expensive. I thought anything from street out was the county responsibility?
Municipalities/cities charge different fees for their services. As an example, in Raleigh, the Water/Sewer Services Installation “Tap†Fee (City installed) is $2,244 for water and $2,806 for sewer, plus $72 for stub permit. Plus the line, permits for the line, engineer, etc. You might want to check county records to find the plats to get more information and potentially engineer contacts to talk to....
Hello , I live in Stone Mountain and used to have a rental house in Snellville. For sewage --No problem --Can have septic tank -- Problem is for water line --you dont need three separate water lines --just one 6 inch line and then branch out at meters --
How ever, there is not enough info --such as how many houses are you going to build and how much profit are you going to make-- how long will it take to complete and sell houses -- carrying costs -- interest on construction loan - Personally Snellville is not a great area for Investors -- and it is difficult to build and sell new homes -- at good price --when many REOs available at 50% value.
You can call me and we can discuss-like to see plat map and layout --and see how can it be built -- it will be fun to tackel as a challenge- I have worked on water lines --but long and much larger supply and for city / county --
Other option is to convince County to annex the land
and than they will take over water line maintenance responsibilty --
you still have to pay all initial expenses --which may not be whole lot for only 100 feet - you can subdivide and add to the cost of house ---- also you can go to county planning department and find out --how they allowed permit before
Champak C Shah --404 488 6137 [ Edited by champakshah on Date 10/10/2010 ]