Hello,
In our area, it is very difficult to find an affordable plot of land. Recently, we noticed one that is somewhat special but quite large.
So far, it is a large plot of about 1400 sq m (15,000 sq ft).
It is planned to be divided, with two detached single-family houses to be built on it.
Because of the specific location, an access road needs to be constructed (see simulation—instead of the row houses, there will be two separate houses).
The plot must be developed with a particular general contractor (GC).
They have apparently already obtained a cost estimate for this, including the demolition of the existing building.
The access will belong to both parties, and the costs will be split between them.
The costs have been listed by the GC in an initial sample calculation as follows:
External development costs €30,000
Demolition work €22,500
Special foundation / foundation elevation €10,000
Removal of excavated earth and backfilling €10,000
Do you think these estimates could be roughly accurate for a project like this? The costs mentioned above also include the “normal” additional construction expenses for the single-family houses. No distinction was made between the driveway and the house.
Are these projected costs realistic?
Do you see any other risks with this approach? For example, what if the other party stops paying their half? Then we wouldn’t be able to proceed...
Definitely an unusual project, and I look forward to your assessments!
Best regards
In our area, it is very difficult to find an affordable plot of land. Recently, we noticed one that is somewhat special but quite large.
So far, it is a large plot of about 1400 sq m (15,000 sq ft).
It is planned to be divided, with two detached single-family houses to be built on it.
Because of the specific location, an access road needs to be constructed (see simulation—instead of the row houses, there will be two separate houses).
The plot must be developed with a particular general contractor (GC).
They have apparently already obtained a cost estimate for this, including the demolition of the existing building.
The access will belong to both parties, and the costs will be split between them.
The costs have been listed by the GC in an initial sample calculation as follows:
External development costs €30,000
Demolition work €22,500
Special foundation / foundation elevation €10,000
Removal of excavated earth and backfilling €10,000
Do you think these estimates could be roughly accurate for a project like this? The costs mentioned above also include the “normal” additional construction expenses for the single-family houses. No distinction was made between the driveway and the house.
Are these projected costs realistic?
Do you see any other risks with this approach? For example, what if the other party stops paying their half? Then we wouldn’t be able to proceed...
Definitely an unusual project, and I look forward to your assessments!
Best regards
P
pagoni202019 Jul 2020 18:58hampshire schrieb:
has a certain flexibility in terms of budget Oh, how wonderfully rich our language is in expressing certain situations smoothly. Great... budget with flexibility... I like that—
pagoni2020 schrieb:
Flexible BudgetThis should actually be the norm, as it is financially healthier. Unfortunately, many home builders prefer to stretch their creditworthiness all the way into the dark yellow range.https://www.instagram.com/11antgmxde/
https://www.linkedin.com/company/bauen-jetzt/
P
pagoni202019 Jul 2020 19:1811ant schrieb:
This should actually be the standard case, as it is financially healthier. Unfortunately, many home builders prefer to stretch their creditworthiness into the lower yellow range.Of course, which is why some things clearly address this – Here, it’s the nice choice of words that briefly made me forget the dry financial topic! In short...