Location: God's own country
Posted on: 22-04-06 19:13:38
Hello CD members,
Just thought that i will post this thread for information to CD members owning or thinking of owning a house.
In India, generally fees for a designing a house can range between 3% to 7% of the project cost. Interior design is around 10% of the cost.
In Canada, our office (a very well known name for designing houses- and we are not an architecture firm) charges $2,500 to $3500 - based on the negotiation skills of the client (incl. a $500 charge per house for structural design by an engineer) for designing a house with 2 elevations, Elevation A and Elevation B. This roughly translates to around 1%. Besides this , there is a $280 charge for Site plan and $180 charge for streetscape (Needs to be approved by an independant Canadian architect). All Courier, xerox, post,printing charges are actuals. After this for any changes in the design (at the request of the client) the charges are $130 an hour for the principal or associate, $65 an hour for the technologist.
For custom houses of arund 5,000 Sq. Ft., the charge is around $5,500 to $6,500 (Including charges for structural design by the engineer who needs to be a PEO) with 2 client meetings to change the design.
For houses i estimate we spend about 100 hrs. of work per each house which translates to about $20 to $25 an hour. He pays me $12.5 an hour and hence as you can see, there is no much profit in this work. Note that he has to pay for lease, hydro, papaer, stationary, misc. items, ink, stationary, bribe, birthday party bill,Etc.....No house can be done in less than 100 hours.
He told us that he made a profit of $5,000 for the year 2003 which is less considering that we make around 150 - 200 houses a year. In India , a top architect in 1994 with a staff of 10 people, will not do more than 15-30 projects a year.
TK
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I am a Gents and not a Ladies.
Quote:
Originally posted by tamilkuravan
He told us that he made a profit of $5,000 for the year 2003 which is less considering that we make around 150 - 200 houses a year.TK
Do your mean the nett profit/gross profit? Is this $5000 profit per house?
I saw a luxury estate homes development in East Gwillimbury last month. The cost from the builder for 3000 sq ft home worked out to $200 psf. The home had all five star finishes. I was impressed by the rates and the quality of workmanship, as the builder had already built and sold 4 homes out of the total 10 lots. There was a project manager who wanted 20-25% on the final sale price (approx $380 psf) of the home.
Since my client had no expertise or experience in the home contruction business, we backed out of this land deal.
Tamilkuravan will you be able to help readers who are thinking of buying vacant lots and construct their homes? If you would like to add your company details to the below link page, I will be more than happy to include it.
See some Ontario const. and contractor links:
http://realestate-ontario.com/links/contractors.htm
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Location: God's own country
Posted on: 23-04-06 16:16:09
Quote:
Originally posted by amit kalia
Do your mean the nett profit/gross profit? Is this $5000 profit per house?
Tamilkuravan will you be able to help readers who are thinking of buying vacant lots and construct their homes? If you would like to add your company details to the below link page, I will be more than happy to include it.
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Amit,
Thanks for the post. I had meant the net profit for him for the year 2003. It was just $5,000 after all the company overheads and salaries. My boss takes a salary of $1,000 for 2 weeks as entered in the company's balance sheet.
I would most certainly be availabe to give FREE and Legally non-binding advice for any desi's who are going to buy land and do sub divisions or do a custom house. Even if you donot hire my company, you know the price range which you should expect in other design companies (Architect firms can cost much more)
At this time, i am not allowed to advertise my company's name on a public forum. Our Boss does not allow it. So please do PM me if you need the service of the company that i work with. It is one of the best and cheapest one in Town. Even if you hire my company to do the job, i donot get any profit our of it but it will only be a loss to me as i would have to put extra free hours to finish the project for you
TK
Sidenote : The contents in this post is subject to approval by moderators
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I am a Gents and not a Ladies.
Location: Beautiful BritishColumbia
Posted on: 24-04-06 03:57:37
TK Saab
The figures you mentioned look a bit skewed to me, please correct me if I am wrong.
Gross Income per annum = 200 houses @ 3000 = 600.000
Costs labour = 200 x 100 x 12.50 = 250.000
His wages = 26.000
Other costs = let us say 150.000 (reasonable per annum)
(lease, hydro, paper, stationary, misc. items, ink, stationary, bribe, birthday party bill,Etc.....)
Total costs = 426.000
Taxable Income = 600.000 - 426.000 =
a cool $174.000 dude
what is he talking about $5000??
He needs at least 10 drafting guys to accomplish 200 houses in a year.
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"After climbing a great hill, one only finds that there are many more hills to climb." (Nelson Mandela)
Quote:
Originally posted by tamilkuravan
Even if you hire my company to do the job, i donot get any profit our of it but it will only be a loss to me as i would have to put extra free hours to finish the project for you
TK
Sidenote : This will delay TK's goals of leaving Canada because he will not meet the financial targets he has deemed necessary to leave. So ***please*** be aware of this fact before you take up the offer.
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