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One thing, I’d at least consider, is buying vacant land and building. Normally you pay a premium for a new build relative to an existing house. But in this mark

One thing, I’d at least consider, is buying vacant land and building. Normally you pay a premium for a new build relative to an existing house. But in this market houses are regularly getting bid 20% over list. To be fair, materials costs and certain subcontractor labor costs are also up, but the overall price tag, nowhere near as much. This is probably one of the few times when building new is cheaper than buying old. New builds with modern finishes are more likely to hold value if/when there’s a downturn.

lotsofpulp 6y ago
Unless you know people in the construction industry, and/or are familiar with construction yourself and evaluating whether or not the job is being done right, I would not recommend building yourself, especially in hot markets. If you're small fry, you're not going to be able to secure the best workers, and you can easily get taken advantage of because you have no idea what shortcuts people are taking if you're not checking up on things. Also, materials costs are insane right now, if you can even get them in a timely fashion. I know someone who took out a construction loan early 2020 based on estimates pre pandemic. They started building recently, and blew threw their budget on lumber alone and had to draw from retirement accounts to keep going. It is a great learning exercise, but not one many can afford on their primary residence.
- datavirtue 6y ago
  This. Don't build unless you you already know what you are doing. I know what I'm doing and it is an absolute bitch and I am finding I have to do most of my own work.
- matwood 6y ago
  > if you can even get them in a timely fashion This. Not just materials but parts because of supply chain backups. Oh, and general worker rates. I just had to replace a hot water heater. Big box stores had prices listed (~$1300 but no stock). Plumber wanted to charge $4k for the equipment and installation. Luckily I knew someone who had wholesale accounts, called all over the state, and found one. Then I did the install in ~2 hours. Dealing with that for an entire house, sounds like a terrible experience.

lotsofpulp 6y ago

Unless you know people in the construction industry, and/or are familiar with construction yourself and evaluating whether or not the job is being done right, I would not recommend building yourself, especially in hot markets. If you're small fry, you're not going to be able to secure the best workers, and you can easily get taken advantage of because you have no idea what shortcuts people are taking if you're not checking up on things. Also, materials costs are insane right now, if you can even get them in a timely fashion. I know someone who took out a construction loan early 2020 based on estimates pre pandemic. They started building recently, and blew threw their budget on lumber alone and had to draw from retirement accounts to keep going. It is a great learning exercise, but not one many can afford on their primary residence.

datavirtue 6y ago
This. Don't build unless you you already know what you are doing. I know what I'm doing and it is an absolute bitch and I am finding I have to do most of my own work.
matwood 6y ago
> if you can even get them in a timely fashion This. Not just materials but parts because of supply chain backups. Oh, and general worker rates. I just had to replace a hot water heater. Big box stores had prices listed (~$1300 but no stock). Plumber wanted to charge $4k for the equipment and installation. Luckily I knew someone who had wholesale accounts, called all over the state, and found one. Then I did the install in ~2 hours. Dealing with that for an entire house, sounds like a terrible experience.