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PER CAPITA is $38,500 (means per person) and that's 2015 (2 years ago). MEDIAN household income was $96,600. I'm sure the stats for 2016-17 will be much higher as most new construction here after all the upgrades are going well over $300k. HOWEVER, that is in NW Indiana which is still considered part of the Chicagoland area. COL is MUCH lower in the rest of the state!
I also stated that affluent homes in NW Indiana would be about $400K. Again, much lower in the rest of Indiana! Illinois $750K (Homes, not salary).
AND your point has what to do with the post???? MY point to the OP is that you don't need to make an affluent income to purchase a new construction home.
OP state's median household income in his area is $30-40k. With those stats you would have to be pretty affluent(relative to area) to buy new.
Presume Chicago sprawl is effectively gentrifying your area but much more than that median income would likely be considered affluent by locals.
Builders use one guideline as to what range of homes to build. That is what the typical buyer wants in size and quality. When this is determined, they build for those buyers. Houses costing too much, or not as nice as they want to buy can stay on the market for a year or two. They can't afford that to happen if they are building on spec (not sold before starting building). They build at a price, and quality that will be sold before the home is finished.
Most people do not have any idea of what is needed to build. Starting with a lot, and availability of street and utilities, and cost to bring in or hook up to. Building permits and inspection fees. Cost of materials and labor, are more than most people realize. If the market is as slow as the OP says in the area, they are going to be building as cheap as possible to keep the cost down. Those will not be anything upscale at those prices. If they are building on spec. (started building without a buyer), they are only going to build what will sell before final inspection. They are not building overpriced homes.
And for the older homes he has been looking at, they are all going to need some work, some more than others. They cost time and money to maintain as his parents have found out. From what I have read that he wrote, he should not buy one of them, as he is not a DIY in any way.
Location: Foothills of Maryland Blue Ridge mountains
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Originally Posted by Serious Conversation
I bet this is true, but we also probably have some of the lowest amounts of regulation and overhead aside from the most rural of areas. It's probably not as bad here as other places.
In general, no, but I am not following them that closely. Many are sitting on the market for months. Below is a common house in the area, and was a childhood friend's home. This is in my grandmother's neighborhood - probably a third to half of the street are original owners, all 80+. There's some nervousness in the county as all of the county high schools are consolidating over the next few years in a yet-to-be-built school near the central part of the county close to the airport.
If something is pretty well updated and under $150,000 - SFH or condo/townhome - they seem to move in a month or so. The college town half an hour away is doing much better, with a better housing stock, but new construction is even more expensive.
Wait a minute. If the Kilkenny house is well built...what in the world is wrong with it? Except it needs updating. You could learn to do some of that. Get pros in for the kitchen and baths and invest in a few hours with a good interior designer before you do anything.
Are you sure a new home is better built and a better investment than an older well built home? I don't know the answer to that....I'm asking.
Wait a minute. If the Kilkenny house is well built...what in the world is wrong with it? Except it needs updating. You could learn to do some of that. Get pros in for the kitchen and baths and invest in a few hours with a good interior designer before you do anything.
Are you sure a new home is better built and a better investment than an older well built home? I don't know the answer to that....I'm asking.
There are actually two answers to that question: 1) Yes. 2) No.
There has never in history been a time when all houses were built to the same standards. The bad houses built 100 years ago are gone; the good ones may be here for another 100 years or more. The same with those built fifty years ago and five.
1. All homes require maintenance, repairs and upkeep. You will eventually want to update a new construction home as well (sounds like you'd want to do that rather soon, too.)
2. If you decide you want to sell in near(ish) future, why would someone want to buy your "used" house, when they could buy new for the same price?
3. Why should a new construction home be priced as a "starter home" if the local market can bear higher prices? If the demand is for "new construction" then those houses are going to cost more.
As was suggested a few pages back, check with builders in the area and tell them what you're looking for. Just because they're all building $500,000 McMansions on spec doesn't mean they would refuse to build something much smaller for you. I'd look for infill lots in town and/or in subdivisions with homes similar in size.
About $200,000 is the cost of building a house new, with the costs of materials and everything. That's the smallest.
That being said, you should be able to buy houses that are already built and they tend to appreciate or depreciate depending on the market. Meaning there should be houses that are $150,000 or $100,000 or even less. Also, it doesn't cost that much to furnish a home to look nice and modern. With $10,000 you should be able to accomplish a lot. That's if you want a modern look. You don't need that.
Just get an older home or a home that's not too old. All new homes are usually more expensive than homes that are already built, but it really depends on the location. So, maybe try searching for homes further away from the city.
if anything is wayyyy overpriced,,,then it shouldn't sell..
I would like to see a builder build a one bedroom home with minimal essentials...but with focus on common areas....such as a fitness center gym/community center.
they can be called condos... but affordable.
here's the dirty little secret of real estate "communities" that many would tell me when I was young
look at where the lowest rental rates are....do you get the poorer folks trying to work there way out of poverty...yes.....but you also get the low-lifes of societies and my favorites,,,ones that want a few chickens....for fresh eggs...
so, for all you may want to deamonize the snobs or rich folks in the gated communities..... usually they don't have to worry if their teenage daughters are outside.
I was a broker on a quality condo project,(in the 250k range),and most of the condo's were bought by live alones,,,a widow or widower,,,and safety, security,,was the number one concern
if the grandkids came over they could play on the community playground without worry ..
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