Quote:
Originally Posted by DFO
I'm not sure how you'd make much money by building one house on a lot. I'm in the middle of the buy/knock-down/build process (in Renfrew) and we wouldn't get all of the $ out if we had to sell right away. To be fair that's due mainly to our building & finishing selections - it's been eye opening to go through the budget process. We would have to of built a fairly cheap house (poor suburbia box builder quality) to break even potentially.
Our cost does include paying a GC - you'd have to be F'ing nuts to manage a project yourself (and hold down your real job).
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most developer/builders will buy a lot and sit on it for quite some time while the tenants pay down the principle and lots appreciate in value. once they get that 'magic number', it becomes feasible to begin construction. for an average joe to jump in and buy a lot to redevelop right away, it is very difficult to turn a good profit. one way a few of my clients have approached this is to buy, build and live in for a year or two, then sell. this allows them to pay down principle and the house appreciates enough to make that profit margin grow, similar in how a developer will buy, rent and sit on a property before building on it. then they move on to the next house...