I am not expert but to my knowledge...

to build a house it cost builder anywhere between $90 to $120 per sq ft ( they use cheap materials)

3000 sqft house will cost them about $300-350K to build and that house easily sale for 700k - 800K

I think Profit margin is high - of course ( all depends not how much cash they have - loans are costly)

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

I think you forgot to factor in land cost which can be easily up to 50 % cost of whole building besides different permission and license fees that are required to be paid to the city .
If there was a guaranteed profit of 100 % every Tom, dick and Harry would have grabbed this opportunity .
I am sure that you are aware that there is no mortgages avlbl to buy a lot ( land ) . One has to have cash in hand to buy piece of land which is rare and quite expensive if its in city . Bldg a house by builder is a different ball game than individual doing it for living . It is definitely lucrative but quite risky requiring lot of efforts to put all bit and pieces in place as TIMING is most important factor starting from excavation to have the external walls built .

Quote:

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Originally posted by Blue_Peafowl

I am not expert but to my knowledge...

to build a house it cost builder anywhere between $90 to $120 per sq ft ( they use cheap materials)

3000 sqft house will cost them about $300-350K to build and that house easily sale for 700k - 800K

I think Profit margin is high - of course ( all depends not how much cash they have - loans are costly)

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Growing Old Is Mandatory ..Growing UP is Optional

Hello Tamilkuravan!

Thanks for the post!
You said: "You need to build arleast 20 houses in an subdivision to start with."

Do you mean to say that it should be a town-house scheme involving 20 townhouses to start with. Kindly elaborate.


Waiting for your response.

Thanks
Mandyshah

Quote:

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Originally posted by AshwaniG

I think you forgot to factor in land cost which can be easily up to 50 % cost of whole building besides different permission and license fees that are required to be paid to the city .
If there was a guaranteed profit of 100 % every Tom, dick and Harry would have grabbed this opportunity .
I am sure that you are aware that there is no mortgages avlbl to buy a lot ( land ) . One has to have cash in hand to buy piece of land which is rare and quite expensive if its in city . Bldg a house by builder is a different ball game than individual doing it for living . It is definitely lucrative but quite risky requiring lot of efforts to put all bit and pieces in place as TIMING is most important factor starting from excavation to have the external walls built .

Quote:

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Originally posted by Blue_Peafowl

I am not expert but to my knowledge...

to build a house it cost builder anywhere between $90 to $120 per sq ft ( they use cheap materials)

3000 sqft house will cost them about $300-350K to build and that house easily sale for 700k - 800K

I think Profit margin is high - of course ( all depends not how much cash they have - loans are costly)

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)