Construction Costs on 30a

[Smiling JOe]

Donna, sales are slightly up lately, but I don't know that the market has turned just yet. Many of the listings going into pending lately are from Aerial Dunes. The listings were taken two years ago, and the reservations were taken around 1.5 years ago, but the listing agent is just now entering them. They do this so that they can keep both sides of the commission. (Greed). Those greedy agents will soon be begging other agents to show their property. We are already seeing this in Cypress Dunes, where the Broker was not willing to pay agents from other brokers any commission for bringing them a buyer. Now those people who need to sell in there, are hurting because most agents never familiarized themselves with the project which would not pay the agent for his or her work. What goes around, comes around.

 

[beachmouse]

The genuinely wealthy people I've known (eight figure net worth on up) have always been very firm on the idea that even if they intended to shower wealth on their kids at some point in life, they still wanted the kids to go through a period of time when they had to make it on their own so they'd learn the value of a dollar and how not to squander it needlessly.

When I was growing up, I babysat for one of the heirs to a major Midwestern grocery chain. Yes, that branch of the Thrifty Acres family was indeed too cheap to spring for cable. (though they paid their sitters well) And all the kids were expected to go out and work on their own for a couple years in order to learn how to stand or fall on their own rather than going straight to work for Dad.

 

[SHELLY]

In our neighborhood and school and day care we have many different income levels. Frankly, I see all of these kids waitressing/waitering/etc. together at some point -- maybe even SoWal and they'd be great. If anything, maybe SoWal will be a place for rich people to give their kids experience working summers.

(Warning: Below is an attempt at a joke)

Good idea...maybe we can convince our visitors who bring their teens to hire them out to our fast food places during their 2 week vacation in SoWal--talk about a win-win-win situation!

First we'll have to figure out how to "unplug" all the kids (rich, middle-class and poor) from their cell phones and iPods so they'll be able to able to hear the deep-fat fryer beeper going off.

 

[Paula]

Even if they unplug their IPods they may not be able to hear the deep fryer because they may have hearing loss from using the Ipods over time anyway...

 

[Miss Kitty]

(Warning: Below is an attempt at a joke)

Good idea...maybe we can convince our visitors who bring their teens to hire them out to our fast food places during their 2 week vacation in SoWal--talk about a win-win-win situation!

First we'll have to figure out how to "unplug" all the kids (rich, middle-class and poor) from their cell phones and iPods so they'll be able to able to hear the deep-fat fryer beeper going off.

:clap_1:

 

[Jellyfish]

So it would appear after all this spirited discussion, I should budget around
$225-250 for an average cottage. I wonder if building in the winter improves the pricing?

 

[SHELLY]

So it would appear after all this spirited discussion, I should budget around
$225-250 for an average cottage. I wonder if building in the winter improves the pricing?

Judging from what I've been reading, trying to determine future building costs will be impossible at best. Once they start rebuilding all the Katrina damage (both residential & commercial) in MS & LA the demand for building materials and labor will drive those costs up to "who knows where."

Even pre-sale condo guys are considering adding language to contracts that leave them lots of wiggle-room to jack up the "agreed upon" price as building costs mount (from here on out ya better get a lawyer to read those contacts carefully).

 

[SHELLY]

Even if they unplug their IPods they may not be able to hear the deep fryer because they may have hearing loss from using the Ipods over time anyway...

That's exactly why I placed a sizable sum into the Hearing-Aid Futures market.

 

[Uncle Timmy]

So it would appear after all this spirited discussion, I should budget around
$225-250 for an average cottage. I wonder if building in the winter improves the pricing?

I haven't noticed any varaiation in pricing during the winter.

Two possible solutions to the current construction costs:

Wait- The real estate feeding frenzy of the past few years is fueling the current construction boom as lot owners who bought in communities with build out times are scrambling to complete their homes. With the slow down in sales we MAY see a slow down in construction (and corresponding prices) within a few years.

Consider some alternative building systems- I am constantly evaluating new building systems with regards both to overall performance (in our harsh coastal climate) and possible cost savings. One system that I am looking at closely is Tridipanel.

Their website is www.tridipanel.com

I contacted them a few months back and they have built one home here in our area (with Wave Construction).

Please note that I am still evaluating the product and don't yet have any information regarding actual pricing, but I am considering using it when I build a planned addition to my own home. I like the fact that it is a panelized system (which is inherently labor saving) and is concrete. It looks like a homeowner might even be able to put the panels by themselves.

If anyone is interested in looking into it further, contact me I would like to be involved.

 

[Camp Creek Kid]

Even pre-sale condo guys are considering adding language to contracts that leave them lots of wiggle-room to jack up the "agreed upon" price as building costs mount (from here on out ya better get a lawyer to read those contacts carefully).

Shelly, that is nothing new. Pre-sales are reservations, but the final price isn't set until the reservation goes in to hard contract. It has always been that way.