You already have location solved if you are looking on, in or along the 30-A corridor. While we are discussing land, it is important to know that you have selected a real estate market that performs very well relative to the financial index that tracks such performance. In a proprietary study of indexed values, here is Rosemary used as an example.
The above data is real. Actual sales in Rosemary were analyzed, indexed to the year 2000 and compared to the popular Case-Shiller 20 City Index. The results are clear. Rosemary has outperformed the 20 City Index handily. Indeed while the "opinion" is still a bit in question, Rosemary has hit an index level higher than its past peak. Said more clearly, Rosemary is now selling for more than it ever has according to the index.
For each of my clients, this is part of a Comparative Market Analysis. While 30-A in general is great, not all the areas of 30-A move in the same way compared to the index or to each other. Most agents will show you pricing per square foot, but this is also an investment market. It is critical to know the history of how pricing in each area compares to the national averages and to other areas along 30-A. If you have an area of interest, contact me and let's discuss how it has performed.
Of course, the total budget you have to spend will dictate to a significant degree where you can purchase a parcel of land. There are good locations along 30-A at price points as low as $100,000 continuing to as high as several million for beach front lots.
For land, you need to know the flood zone. For most, you need to be in and look in the X flood zone. This basically means that it has a very low chance of flooding. If you have a lender involved you will not be required to get flood insurance. Remembering my Journey Begins article, if you can do some legwork, here is a site to see the flood zone classification of all land in Walton County.
For building, you also need to know a critical number - 750. At locations less than 750 feet to the water there is one set of engineering criteria. Over 750 it is another set of criteria. Some of that criteria will drive cost to build a bit higher. On the beach front lots, the price to build is driven by foundation and required construction techniques.
The cost of insurance including the Builder's Risk policy you would need to carry if you contract the home yourself will be less expensive if your lot is over 750 feet from the beach all else equal.
So where to you locate and how do you look? Get your adviser to show you the index of values for all neighborhoods. Talk to them about the dream and the budget. If they know construction costs for the areas pretty well, then the budget for land will be an obvious number range. Based on this knowledge, the adviser should be able to properly target land that is within your reach overall.
Well, if you want to keep a running total of the project that is actually underway, here you go.
Project One is in Old Seagrove West of 395 950 feet from the beach.
LOT COST PROJECT 1: $330,000
Let's Build Something Together Series
The above data is real. Actual sales in Rosemary were analyzed, indexed to the year 2000 and compared to the popular Case-Shiller 20 City Index. The results are clear. Rosemary has outperformed the 20 City Index handily. Indeed while the "opinion" is still a bit in question, Rosemary has hit an index level higher than its past peak. Said more clearly, Rosemary is now selling for more than it ever has according to the index.
For each of my clients, this is part of a Comparative Market Analysis. While 30-A in general is great, not all the areas of 30-A move in the same way compared to the index or to each other. Most agents will show you pricing per square foot, but this is also an investment market. It is critical to know the history of how pricing in each area compares to the national averages and to other areas along 30-A. If you have an area of interest, contact me and let's discuss how it has performed.
Of course, the total budget you have to spend will dictate to a significant degree where you can purchase a parcel of land. There are good locations along 30-A at price points as low as $100,000 continuing to as high as several million for beach front lots.
For land, you need to know the flood zone. For most, you need to be in and look in the X flood zone. This basically means that it has a very low chance of flooding. If you have a lender involved you will not be required to get flood insurance. Remembering my Journey Begins article, if you can do some legwork, here is a site to see the flood zone classification of all land in Walton County.
For building, you also need to know a critical number - 750. At locations less than 750 feet to the water there is one set of engineering criteria. Over 750 it is another set of criteria. Some of that criteria will drive cost to build a bit higher. On the beach front lots, the price to build is driven by foundation and required construction techniques.
The cost of insurance including the Builder's Risk policy you would need to carry if you contract the home yourself will be less expensive if your lot is over 750 feet from the beach all else equal.
So where to you locate and how do you look? Get your adviser to show you the index of values for all neighborhoods. Talk to them about the dream and the budget. If they know construction costs for the areas pretty well, then the budget for land will be an obvious number range. Based on this knowledge, the adviser should be able to properly target land that is within your reach overall.
Well, if you want to keep a running total of the project that is actually underway, here you go.
Project One is in Old Seagrove West of 395 950 feet from the beach.
LOT COST PROJECT 1: $330,000
Let's Build Something Together Series
No comments:
Post a Comment