Rick, I’m an architect in northeast LA, I’ll have to share this with people when they ask why I primarily work on luxury properties. There are a few opportunities on hillside lots but you’re still looking at that $1.2-1.5M threshold.
But that's the problem. Now you have to have solar regardless of the size of the home. The cost of a sewer line for a 1,000 square foot home is the same as a 4,000 square foot home. Plus on a practical basis the largest demographic of buyers right now are millennials. As they start families, the 2 bed homes are no longer practical. Really they need 3-4 bedrooms. I do agree with you, there is a segment of the population who wants an affordable starter home.
I'm looking out on the 14 corridor and land out there is better but then utility hookup costs more. With at least a couple neighborhoods with dry wells, even that's not a solution.
I agree. Unfortunately utility costs can be expensive. Solar can only go so far (for now) and then do septic and propane tanks, but that isn't for everyone.
I built a home 15yr ago. The general lied and lied and lied. With is fee mark ups up sell and lies. The price was way over is original price. Almost lost the home. Don't trust the generals all rip offs. Then your house get re assessed. Be prepared to spend twice as much. Good rule of thumb.
I agree, plus it can be an "affordable" housing option in comparison to other new construction in the same neighborhood. There is a bigger buyer pool when the resale price is less and there is demand for new construction.
I see a lot of land in the price of 100,000's all around the woodland hills, sherman oaks, hollywood hills that say that have all of the permits ready and everything. How much per square feet would it be to build a decent home there?
Those are mostly hillside and it completely varies. It is going to be much more expensive because you need to make sure the home can be built into the hillside. It could easily be 3x the amount.
If I am spending mor than 1 million dollar to build the house, and if I sell it they won't pay no more than 650,000 for it, then what's the point of building houses now a day?
That's a great question. Right now Builders are reporting a decline in the cost of building materials. But that doesn't exclude the cost of labor. With talks of recessions, it may result in lower labor costs as there will be a need for work.
Good stuff! 🦾 What about building in Hollywood Hills / Birds Street luxury home with a 45 degree gradient / slope? Let’s say we need 60-100 caissons going 50-60 feet deep, 1 acre land (bought for 3M) and 12000 sqft living space, 60 foot infinity pool, massive driveway to park 10-12 cars, deck around 7000sqft, top on the line amenities, flooring and materials, and tennis court built on the leveled slope? What’s the total cost and also average cost per caisson? I’m thinking 8-10M (3M land + 5-7M construction), I’ve heard 20-30K per caisson cost with a good GC, thoughts?
That is fairly small for most of LA but there are pockets. Feel free to contact me through rickalbertonline.com and we can set up time to chat. Thanks for the comment!
