All Entries Tagged With: "Investments"
Thinking About Building A New Home?
NEED SOME GUIDANCE ON WHERE TO BEGIN?
This is the one you have been waiting for, right? Where do you begin? You’re right in asking this question because if you have not done this before…there is so much that takes place from concept to completion. Scary, huh? – it doesn’t have to be if you have a knowledgeable instructor! It’s true that I don’t know the first thing about selling a car (mark up costs, carrier, dealer, lease obligations, etc.), and I’m not a heart surgeon and wouldn’t pretend to be even after a long night with friends – but, when it comes to building a home, I feel pretty confident that I can assist you.
This is why I am going to share some of my expertise with you over the next 10 weeks or so — walking you through all the steps — from planning your home concept all the way through to placing the silverware in the kitchen drawer!
Let start with…
STEP 1:
Planning- Where do you want to live?
This may sound foolish, but it is really not. Some people spend the least amount of time on this one, when it is really the most critical part. This ONE question consist of:
Can I afford the neighborhood: taxes, insurance, square footage requirements (in some developments) and on and on…
Am I getting married, if so, are we planning on having children: how are the public school systems…
What style houses go within the area of my choice(s) – you don’t want to over build or settle for something that is not appealing to you – what is my desired living space/square footage?
Atmosphere in the area – things to do – quality of life (probably the most important question in Step 1 believe it or not!)
What’s my minimum expectation for land/lot size – am I okay with just a small buildable lot size (maybe in close proximity to shared green space or community areas/playgrounds, etc…) or do I want ACRES?
Do I want to own livestock?
Do I want to live off the grid – times are getting tough…
Can I find a house similar to my ‘list’ that might just need slight remodel work vs. a new build– and possibly save thousands (or tens of thousands)?
Is this my permanent home or is it for only 5, 6, 8, 10 years?
Do I really want to own a home – and do I want the responsibilities that come along with home ownership like landscaping, interior/exterior maintenance, those resulting improvement costs, the never ending ‘to do list’, etc…?
Does it still sound scary? No worries, Craig DiPetrillo is here, to make your decision making process a whole lot easier! If you have the time, jump in and we’ll look at this one step at a time, together. This week, let’s focus on getting the answers to the 10 questions above. In addition to each week’s blog that will consecutively cover each step, we will post a ‘public’ question received with my answer, relative to the last step discussed. If you have a question on this current step, please email it to Info@DiPetrilloProperties.com. We will draw one or two from the group to answer.
Coming next week, STEP 2: Planning – selecting a home design, financing, and a contractor.
DiPetrillo Properties specializes in home building and renovations. We have over 25 years of design, construction and investment talent and experience waiting to be utilized on your next project. Call us today for a free in-house consultation with no obligation.
WHERE DID ALL THE NEW RAISED RANCH HOMES GO AND WHY ARE THE ONES THAT DO STILL EXIST ALL KHAKI?
This is a very interesting question, especially for my Rhode Island friends…
The color mentioned – ‘khaki’, e.g., tan, beige, desert sand, khaki…THE LIGHT BROWNS!!! It is the color family that has dominated the RI home market for decades. Why? Rhode Island has made two things clear:
1. fried calamari should be served tossed in an olive oil/balsamic vinegar with yellow banana peppers and some garlic, and;
2. the raised ranch home is the ideal contractor spec home and should have an exterior vinyl color of “khaki”.
Why khaki? When building a spec home (a contractors model home speculated to sell) they want to be certain to stay with the neutral coloring as it has been proven to be the most appealing and calming. Even if the color of ” khaki” is not the first choice of the inquiring and potential home buyer – chances are they will not walk away or lose interest in purchasing the home vs. the houses with a loud finish/exterior color which is more costly to cover up or change if disliked. And, this is the same reason that “bone white” is most often the chosen paint for the interior walls and white for six panel interior doors. This is the leading package that has been sold in Rhode Island for 20 years this coming August! Why are we seeing less of this model/package all of a sudden? Why the change? Simple. Contractors have been choosing to opt out of building spec homes from ground up due to the economy and the slowing (to almost extinction) of the middle class. These very important segments will need to be thriving if we’re to see that “khaki” raised ranch boom again!
And in the last five years contractors began to shift gears away from the fully guttedflip trend (which is now becoming very scarce) to flips with cosmetic touches. These cosmetic touchups I warn you…be careful. The permitting process is a bit sketchy, as it does not always require attention to: electrical, plumbing and mechanical areas. However, many contractors find these projects to be very lucrative and profitable and there are A LOT out there for sale now. Just a word of warning – if you do notknow your contractor, you better investigate them well – I find this “cosmetic” homeflip as the #1 cover up complaint in Rhode Island!
Craig DiPetrillo – DiPetrillo Properties – Planning, Investments, Construction
Building a New Home? Did you receive your estimate as an itemized price list or by the square foot?
With the economy booming (so I hear), pricing on material is changing almost daily (so it feels). I have had this question asked of me about 10 times in the last 2 weeks: “how much will it cost per square foot to build a home”? You will hear quotes from $125.00 per SF to $225.00 per SF. My answer: what building material are you using, e.g., stick build or truss and what do you envision for your finish esthetics, e.g., chair rails, raised panels, crown moldings, granite? This is when my client says, “well, I would like some of those finishes, but not all of them are needed”. Okay then, this is where IF YOU HAD an agreement with the contractor at a price per square foot, it gets a little tricky and starts to fall apart.
Once you start removing and adding items it is almost impossible to adjust the square foot price for accuracy. The question now remains: are you actually paying more or less on the square foot for what you are getting. My opinion, price the ACTUAL item, product, and linear footage for accuracy. Have a plan, a physical construction set. Then, if you don’t have a general contractor of choice, price it yourself. Visit at least two local lumberyards for a price on material, and they will give you a labor estimate when asked. Keep in mind though, the labor estimate, if given, may not be the same quality you are looking for, but it is exactly what you need to consider – “labor estimate”. The reason I believe and know this is the best way to go, is from over 25 years of personal experience.
Think about it, if you have a great room side by side with a formal dining room, both without interior walls, how would one believe the square foot (12”x 12”) estimate method is accurate? It cannot be. The best way to maintain your budget and accuracy in estimating is spending the time to price nail by nail and a good general contractor (G.C.) that knows quality, who is affordable and a punctual individual with a knack for maintaining their client’s budget. Do not get into the big no-no after you sign an agreement with a G.C. and decide on upgrading items and changing the design plan! This is where the budget wanders off course, does not come back (only climbs higher)and the G.C. can now make up for lost money and time if one so decides in order to keep the job moving along. This warning is usually the one that blows all the budgets – “on-site changes”. So take it from me; first: take your time in planning, second: invest in what you can afford – not keeping up with the “Jones”, third: monitor and be involved in your construction process. After all, this is your home. Happy building and enjoy the summer!
Please consider DiPetrillo Properties for YOUR Home Building – we specialize in ground up construction!
Are solar panels for residential properties worth it?
Residential Solar
The Answer – “ABSOLUTELY”! Most people do not realize that it’s not just the electric company that offers credits for purchase and rebates of renewable energy installations/projects — there are private companies out there that will foot the whole bill and/or you are often able to establish a small payment plan (could be around $100.00 per month) added to your electric bill (directly) each month, as opposed to a large one time expenditure. The savings alone (approximately 20-30% annually) could prove to be greater than the payments/expense for the panels – it will make sense. On the other hand, if you do not have a large home or a lot of activity going on at your residence (such as a farm), it might not make sense at all, as you will notice when you run your numbers…
Residential solar systems, on average, cost about $20,000 to install. State and Federal subsidies generally cover about half the cost, bringing it down to about $10,000 in out-of-pocket expenses. This is where those private small companies that you’ve been seeing popping up come in to play to better incentify these potential money saving programs by assisting you with affordable installation and payment. options.
What are you getting for the price? Beyond the actual solar panels, the solar package(s) generally include a new electric meter, installed by the electric utility, that registers credits for the homeowner. When the solar panels produce more power than is needed, the meter then helps deduct credits when the electric usage exceeds the electricity being produced by the panels.
The first and most important question is always “…what is my return”? Well, after doing the math, the solar systemsdo add value to the investment! So when measuring the cost of installing solar panels, you must include the value it adds to your property in addition to the savings on your electric bill.
Just another option when going green and making your property more efficient.
Craig DiPetrillo – DiPetrillo Properties – Planning, Investments, Construction
