8 ms·

What I really want to know is why I can't have a Soviet concrete-block box-house built in the US for $20,000 yet. Is it because you are really mostly paying fo

What I really want to know is why I can't have a Soviet concrete-block box-house built in the US for $20,000 yet. Is it because you are really mostly paying for the land? But still, building a house still runs at $100,000+. Why though. Are any of the pre-fab companies taking off? I want to buy a run-down house, tear it down, and build pre-fab on it for $20,000, damn it. Sorry, off-topic, but it seems like such an opportunity area for someone with some capital.

davio 8y ago
We spent 7K to tear down a house in probably the lowest cost area of the USA
- madeuptempacct 8y ago
  Yea, it's expensive to tear down, usually almost double that even in cheap areas. It's part of the problem to the point where some of my friends discussed setting up a tear-down company rather than trying to mess with conventional real estate. Edit: Also totally unrelated, but I have always wanted to know what the raw cost for a basement/foundation usually is.
irrational 8y ago
But, how much will the run-down house cost you? In my area there are so many more buyers than houses available that people are buying shacks for many hundreds of thousands of dollars.
- madeuptempacct 8y ago
  I am in a fly-over and there are "upcoming" areas - pockets between the city and the suburbs, within 10 mins of downtown and other "prestigious office areas" that are almost sure to take off, but total ghetto now. It's not worth risking $200,000 to build a fancy house there, but it's worth $15,000 land, $15,000 tear down, and $20,000 pre-fab. At least, that's my very-limited POV.
pbhjpbhj 8y ago
>I can't have a Soviet concrete-block box-house built [...] // They're competing with you buying a pre-built house. There's no need to charge that little, in addition people will often pay more to have their own house built, and new carries a premium. So there's no pressure pushing them to make houses low cost. Buy the land, hire a builder .. they'll still charge you too much because your alternative is still to have a pre-built house. Rent-seeking ftw.
- deleted 8y ago
  [deleted]
hikari-boulders 8y ago
Regulation is certainly part of the cost.
- twic 8y ago
  How much?
  - hikari-boulders 8y ago
    Don't know, depends on the country. I can give you an example from Europe. Switzerland is one of the highest income highest cost countries in Europe. If it weren't for different regulations mandating Swiss level salaries for foreign workers, import tariffs, taxes (and probably a bunch of other stuff I don't even know about), it would easily be possible to pay only 10-20% for a prefab compared to a non-prefab.
    - s3nnyy 8y ago
      Which "regulations mandating Swiss level salaries for foreign workers" are you talking about?
      - hikari-boulders 8y ago
        They are called (in German) "flankierende Massnahmen".
        s3nnyy 8y ago
        link?
        hikari-boulders 8y ago
        Well, I cant find one in English. [Here](https://www.personenfreizuegigkeit.admin.ch/fza/de/home/aufenthalt_und_arbeitsmarkt/flankierende_massnahmen.html https://www.personenfreizuegigkeit.admin.ch/fza/de/home/aufe...) is one in German, if that's all right with you. Basically the first sentence of the first section defines it: "Das Entsendegesetz verpflichtet ausländische Arbeitgeber zur Einhaltung von minimalen Lohn- und Arbeitsbedingungen gemäss den anwendbaren schweizerischen Vorschriften." Google translate gives this: "The Posting Act requires foreign employers to comply with minimum wage and working conditions in accordance with the applicable Swiss regulations."

davio 8y ago

We spent 7K to tear down a house in probably the lowest cost area of the USA

madeuptempacct 8y ago
Yea, it's expensive to tear down, usually almost double that even in cheap areas. It's part of the problem to the point where some of my friends discussed setting up a tear-down company rather than trying to mess with conventional real estate. Edit: Also totally unrelated, but I have always wanted to know what the raw cost for a basement/foundation usually is.

irrational 8y ago

But, how much will the run-down house cost you? In my area there are so many more buyers than houses available that people are buying shacks for many hundreds of thousands of dollars.

madeuptempacct 8y ago
I am in a fly-over and there are "upcoming" areas - pockets between the city and the suburbs, within 10 mins of downtown and other "prestigious office areas" that are almost sure to take off, but total ghetto now. It's not worth risking $200,000 to build a fancy house there, but it's worth $15,000 land, $15,000 tear down, and $20,000 pre-fab. At least, that's my very-limited POV.

pbhjpbhj 8y ago

>I can't have a Soviet concrete-block box-house built [...] // They're competing with you buying a pre-built house. There's no need to charge that little, in addition people will often pay more to have their own house built, and new carries a premium. So there's no pressure pushing them to make houses low cost. Buy the land, hire a builder .. they'll still charge you too much because your alternative is still to have a pre-built house. Rent-seeking ftw.

deleted 8y ago
[deleted]

hikari-boulders 8y ago

Regulation is certainly part of the cost.

twic 8y ago
How much?
- hikari-boulders 8y ago
  Don't know, depends on the country. I can give you an example from Europe. Switzerland is one of the highest income highest cost countries in Europe. If it weren't for different regulations mandating Swiss level salaries for foreign workers, import tariffs, taxes (and probably a bunch of other stuff I don't even know about), it would easily be possible to pay only 10-20% for a prefab compared to a non-prefab.
  - s3nnyy 8y ago
    Which "regulations mandating Swiss level salaries for foreign workers" are you talking about?
    - hikari-boulders 8y ago
      They are called (in German) "flankierende Massnahmen".
      - s3nnyy 8y ago
        link?
        hikari-boulders 8y ago
        Well, I cant find one in English. [Here](https://www.personenfreizuegigkeit.admin.ch/fza/de/home/aufenthalt_und_arbeitsmarkt/flankierende_massnahmen.html https://www.personenfreizuegigkeit.admin.ch/fza/de/home/aufe...) is one in German, if that's all right with you. Basically the first sentence of the first section defines it: "Das Entsendegesetz verpflichtet ausländische Arbeitgeber zur Einhaltung von minimalen Lohn- und Arbeitsbedingungen gemäss den anwendbaren schweizerischen Vorschriften." Google translate gives this: "The Posting Act requires foreign employers to comply with minimum wage and working conditions in accordance with the applicable Swiss regulations."