Tips for New Residential Construction

The process to entitle lots can take more than five years and is expensive. The cost of parcel maps for five lots or less is $100,000. Tract maps for more than five lots can cost more than $500,000. The number of lots and the potential size are determined by biology, health-department regulations, slope, and the zoning and general plan. Included in the cost are engineering, processing, and regulatory fees and various reports and studies.

Reports and studies include conditions of approval costs, storm-water treatment, anthropology and archeology, soils, biology, noise, and traffic. When a map is approved and recorded, there are additional fees that include, but are not limited to the following:
• Potential greenhouse gas studies
• Retention and drainage basins
• On- and off-site mitigation land
• School fees
• Parks and recreation fees
• Physical secondary access
• Fire fees
• Annual bonding fees.

Politics comes into play when obtaining the required approvals from county boards, city councils, and planning commissions. The level of public opposition or support affects hearings completion. They can be completed in as little as four months, or take years and cost over a million dollars. Property owners have three courses of action to take into consideration.

1. Entitlement and sale of the property ‘as is’ – This option brings the lowest price, but costs the least and requires the shortest time for property disposal. Under rare circumstances, the land is worth more when it is unentitled.
2. Enter into a long-term agreement – The agreement is made with a home builder who incurs the expenses of processing a tract map. This option is the most utilized. The process could take up to five years. The buyer is required to release nonrefundable deposits periodically to the seller after approving their contingencies. Escrow closing typically occurs after tentative or final map approval.
3. The owner incurs the entitlement costs – Much of the process is like option two. The difference is the owner has full control of the mapping process and bears all expenses.

The ramifications of each choice should be weighed carefully before making a decision. Owners, who have chosen not to seek advice, have made the decision to process a map and found out later the number of lots was not financially feasible. A competent engineer can determine the optimal number of lots that can be obtained and approved. Smart growth design principals call for buildings with a variety of materials, texture, and color and individuality; well-defined open space; a building and street relationship; mixed uses; and high-density development. Contractors, who specialize in residential subdivisions, can give realistic cost estimations.

The process of entitling residential property to higher densities is costly, complex, and cumbersome. Many factors must be taken into consideration. The leading concerns that communities have about increased density are the quality of life and increased costs.

There is a need for new affordable housing to reduce recent overpayment and overcrowding. There is also a need for high-density housing that supports economic recovery, accommodates new workers and their loved ones, and economizes the costs of infrastructure. It is quite a balancing act. Open spaces need to be conserved and the distance between new jobs and new homes reduced.

Affordable Housing for the Middle Class

“What does affordable housing in Gurgaon, with its high-lifestyle, urbanization, and posh-societies look like?” You may think, given that Residential Flats varies in its meaning for different demographic profiles. Especially in the Indian real estate market, affordable housing has a connotation for housing for the lower income group (LIG), by which they too can enjoy a comfortable living and security. With the incumbent government’s focus on this section and more on the affordable housing, it seems like the real estate sector has been able to get the boost that it had been waiting for of late.

However, there is an important trend that needs to be taken note of before the government claims that its affordable housing project is a success. The term affordable housing, in different contexts, also has a local meaning. According to this, affordable housing includes housing options for a segment of population that can become potential home buyers in a city. If we take this definition into consideration, there is a sizeable population in every city, which although it will not identify with or fall under the LIG, is equally incapable of allotting a large budget for buying homes. It is not only sensitive and cost-wary but is looking forward to finding a house of a decent budget-size within the realms of the city. A typical example is of the residential flats in Gurgaon, which although are well-furnished, but do not still fall under the budget for the middle class.

When we take this population’s demands and needs a little more seriously, we find that there is a dearth of properties in good locations within the city, which buyers can afford. These buyers often have a budget of INR 30-40 lakhs, but more cities including Delhi NCR have a deficit in properties which match this budget range. Usually properties which are around INR 20 lakhs are still on the outskirts lacking good transportation and other facilities required by the urban middle class. This means that there is indeed a requirement for more housing under the affordable housing section, where different demographic profiles can find properties for themselves.

There is an urgent need for developers to come up with budget housing projects in the larger cities. As modern India moves towards development and rising aspirations, affordable housing and the security that comes with it, is increasing. This appears to be a very high opportunity for developers who can count on a boost in the real estate industry. More absorption of the housing projects in the urban cities is also a strong indicator of the socio-economic growth in the country, thereby projecting a positive image. While the demand is strong and only increasing, there are a lot of policy-level changes that need to be introduced.

Not only will the affordable housing for the middle class prove to be a sustainable business model for the future, it will also allow more cities to come up to ranks. More affordable housing projects will assure developers that they do not struggle with inflation or even setbacks in the economy. Another trend that one needs to channelize is that more real estate investors are now eyeing budget and affordable housing projects. Where luxury homes and premium homes find it hard to make it through a rough economy, affordable housing is still on the move. The healthy demand in addition with more money coming in steady from investors means a healthy micro-economy. It is now time for builders and the government to give this proposition a try, ensuring that the overall development of the country happens throughout.

Choosing the Best Green Home Builder

Today many people are “going green”, which means that they are becoming environmentally friendly in how they live their lives and minimizing the harm done to the earth. When some people decide to build their home from the bottom up, they decide to have a green home builder build their home. This contractor would build their home with low environmental and energy efficiency in mind. To find a green home builder you should talk to the contractors in your area. Some that will travel to your area to build your home but their services will add more expense to the cost of your home.

To ensure that you will have the best green home builder ask them what type of building material they will use. You should also inquire about their disposal methods to make sure they are in compliant with sustainability practices. The materials that they should use are non-toxic when possible, and environmentally friendly. They should also be materials that come from renewable sources, or sustainable material. This can include materials from homes that have been knocked down. This material can include old doors, cabinets, some of the wood to accent the home such as using the material for ceiling beams, and more. They should try to avoid using plastics and choose their wood carefully. You should ask to see examples of the green projects they have completed. Their construction philosophy should focus on green building. It should not just focus on using green techniques as a secondary technique. Make sure that the contract you sign states that it will be constructed from sustainable and green material.

A home builder may tell you that they are using green building techniques but it could be easy for them to start using less environmentally friendly techniques and designs to save money on materials so they can put more money in their pockets. This is why you need to be sure that they are a reputable home builder and have good references as a green construction company. They need to be knowledgeable about green techniques and processes and committed to green construction and design. If you want your new green custom built home to be built using unconventional techniques make sure the home builder can demonstrate they understand the techniques you want and can do them correctly.

Before you choose a green home builder, you should educate yourself on what constitutes a green home and the process to build one. This will help you to determine a good green home builder and to know if they are cutting corners using non-environmentally friendly material. Having a green home can save you money on heating and cooling costs, and if sustainable material is used it can save these materials from being disposed of improperly.