Real Estate

Home builder / developers

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  • Apr 17th, 2017 11:27 am
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Apr 9, 2017
1 posts

Home builder / developers

Hello everyone. I enjoy reading this forum, lots of insight.

Does anyone have experience buying land and having a builder / developer construct a home for you? I'm doing some research and would appreciate any information for work outside the GTA. Pros / cons / recommendations / links ? Thanks.
6 replies
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Feb 2, 2014
8228 posts
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Toronto
coslor wrote: Hello everyone. I enjoy reading this forum, lots of insight.

Does anyone have experience buying land and having a builder / developer construct a home for you? I'm doing some research and would appreciate any information for work outside the GTA. Pros / cons / recommendations / links ? Thanks.
Many people in the GTA are buying knock downs and doing this (look at areas such as Willowdale, where every other home is a rebuild).

Financing is the tricky part, as you will need to have a bit of cash to invest in the land purchase and construction costs. Most construction loans will want you to finance the initial stages of the purchase, as most of the cash is released later on in the process.

If you have the cash and find a good deal in the right area, go for it.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Aug 19, 2011
4137 posts
3075 upvotes
Markham
coslor wrote: Hello everyone. I enjoy reading this forum, lots of insight.

Does anyone have experience buying land and having a builder / developer construct a home for you? I'm doing some research and would appreciate any information for work outside the GTA. Pros / cons / recommendations / links ? Thanks.
First step would be to do a financial assessment to see if you can afford it. Talk to your bank to get an idea on construction loans which have very specific requirements.

You also have to remember if you use a non-Tarion builder there will be no warranty other than any offered by trades or manufacturers.

I just built two lots for personal use and gutting my old place as well so ask specific questions and can try to help you.
Deal Addict
Dec 1, 2009
1031 posts
107 upvotes
Mississauga
X24Secret wrote: First step would be to do a financial assessment to see if you can afford it. Talk to your bank to get an idea on construction loans which have very specific requirements.

You also have to remember if you use a non-Tarion builder there will be no warranty other than any offered by trades or manufacturers.

I just built two lots for personal use and gutting my old place as well so ask specific questions and can try to help you.
are you a builder?
Deal Addict
Aug 19, 2011
4137 posts
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Markham
jeffdude87 wrote: are you a builder?
No but like I mentioned I did it recently. Most custom builders are little more than glorified project manager/coordinators.

You can save a decent chunk by eliminating that middle man but the trick is to have access to a good set of trades.
Deal Addict
Jul 3, 2007
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Toronto
good trade contacts can be hard to find right now.....that is a major hurdle to find quality guys for a good price
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Feb 2, 2014
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joepipe wrote: good trade contacts can be hard to find right now.....that is a major hurdle to find quality guys for a good price
It's been like that for a while...and "hard" maybe an understatement. There are so many stories where the workers leave in the middle of the job, because they got a better contract (more pay) elsewhere. Rebuilds by the average joe are taking forever even if they have a good GC (I'm sure we all have seen that house that's taking a year to build now).
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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