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Updated almost 10 years ago,

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15,171
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Joel Owens
Agent
Pro Member
  • Real Estate Broker
  • Canton, GA
11,252
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15,171
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Building subdivision upscale houses

Joel Owens
Agent
Pro Member
  • Real Estate Broker
  • Canton, GA
ModeratorPosted

So I was curious as to building new homes. It seems they are making a comeback in my area again.

I might buy a lot in an existing new subdivision from a developer.

The question I was wondering is what is the average profit margin per house and turn time??

The lower end areas here are 200k houses. In other counties an average house might go new for 500k or 600k. I was wondering if margin stayed the same with a more expensive house. The sq ft is a little bigger and I know the lot will cost more with higher end finishes.

I was wanting to know though if say on a 200k house you make 20% return do you still make that on a 600k house or does the return start dropping to say 15%?? If the number drops as you go up it would seem your capital is more exposed for a reduced return on your money.

What taxes per year do you pay on building houses versus buy and hold?? Just looking at various things to research more. 

How much down on a residential construction loan for about a 600k house when resold??

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