The cost and time of building a home is no joke, but given the increasing costs of homes this year, it’s possible that you can make a house as big as the average home in the US while paying less than the cost of homes this year. If you’re looking into the most cost-efficient way to build a home, you’ve come to the right place. Here’s how you can build an affordable home this year.
A Disclaimer
Although this guide claims to help you build an affordable home, it does not mean that such a home will be comparable to the average homes in the market. We also do not claim that such a home will be the best in the market, and there is a huge possibility that it might not be suited to your lifestyle, especially if you want to live near the city. Regardless of these things, this guide will still help your skills in calculating the costs of building a home and what you need for building one. Let’s start with the most basic and that purchasing suitable land for your home.
Purchase Agricultural Land
Agricultural land or rural land is considered one of the cheapest lands you can purchase in the US. The average cost of rural land is estimated to be $3,160 per acre. One acre is equal to 43,560 square feet. This is very cheap if you compare it to urban land, which can cost you more than $15,000 for one-fourth of an acre. This is because there is barely any demand for rural land nowadays, aside from farming. But don’t go on and start building a residential village on top of your farmland because you can’t.
Agricultural Zone
It’s not illegal for you to build a home on agricultural land (farmers do it all the time!), but you do have to prove that the land you’ve purchased has some agricultural value. The main reason why you have to do this is because of zoning laws. The land you’ve purchased is inside the agricultural zone, meaning it must have an agricultural purpose.
So if you’re planning to build this affordable home, you’re going to need to become to raise an agri-business at some point in your life. You have more than enough land for that. Once you’ve gotten this settled and have prepared your life as a future agri-business owner, then you can start planning your affordable home.
Permits
Before you start building your home, you’re going to need permits. You’re going to need all kinds of permits such as building, water, and electrical permits. Some of these permits might require some qualifications depending on the size of the project. Make sure you save around $10,000 for this, as all the permits for your home can easily cost you that amount.
Contractor
If you have experience building when it comes to construction, you can be your contractor in many states. However, if not, you’re going to need a general contractor to build a home. This kind of contractor can do every work needed to build a home, and since they are professionals, they should be able to build your home in no time. Contractor prices vary widely, so make sure you exhaust your options before you choose one. This will ensure that you can get the best out of your contract.
Material Cost
Material cost is one of the main reasons why homes are expensive. The average-valued home in the market is expected to be built with $248,000 worth of construction materials. That’s a hefty price for a home, but it is certainly the case today, especially if you’re planning to build a home with everything on it. However, you can always resort to the $50 per square meter method. This method is proven and tested when it comes to calculating material costs. But this is intended mainly for construction purposes, so other designer materials aren’t included in this. It won’t also make your home look pretty the moment you’re done building it.
For an average-sized home (2,300 square meters), you’re going to need to spend $115,000 on materials. This is in line with the material cost of low-budget homes. It’s enough to build a home sufficient to your liking, with every necessity you need to survive. You might even have enough for your farm to work.
Plumbing and Electricity Work
Plumbing and electricity work is a whole different story when building your home. Material costs for building this can go as high as $50,000, but average homes usually get it for half that given amount. You’re also going to need someone to check these things if they are functioning properly and if they are up to safety standards, so that’s going to require a home inspector. But usually, they go between $100 to $250 per inspection, so they’re pretty cheap for the benefits they give your home.
This is how you can build a home for less than $340,000 in the US. If you don’t know, that is the average price of homes nowadays, and experts believe that it has increased by almost two-fold during the last ten years. Overall, the price of a house like this around the $200,000 to $250,000 mark. At this point, you’re better off with this option if you want to save money. However, it’s also crucial that you consider the lifestyle changes you have to undergo when living in such a home.