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Author: Subject: Are building costs in Baja out of hand?
BajaBruceFan
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[*] posted on 10-22-2008 at 09:53 AM
Are building costs in Baja out of hand?


From the quotes I've received it looks like the cost for a reputable builder to build a gringo home in BCS is about $100/sq ft - and this figure does not include the price of the land to build on.

With the downturn in real estate in the US, one can buy a nice home in Arizona or Florida for around $100/sq ft including the lot.

Does it seems like the cost to build in BCS is completely out of whack? Will the US real estate downturn and recession put any downward pressure on the cost to build in Baja? Is it better to build now or wait a year or two for the cost of labor & materials to fall?

Any thoughts?
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durrelllrobert
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[*] posted on 10-22-2008 at 10:19 AM


Quote:


Any thoughts?

sure you can buy a resale for $100/ft with downturn in housing but you can't build new for less than $150/ft.
Last year I built my cosita here in Punta Banda for $40/ft but I was contractor/designer and just used day laborers. Key to keeping cost dow is a detailed set of plans and making sure the are followed rather than letting builder do it his way (lots of scrap and many extra hours)




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[*] posted on 10-22-2008 at 10:32 AM


I know the price of materials has increased due to increased demand. I built a house of 4200 feet (total construction area- not inside living area) for $180K five years ago. No mas. The demand has subsided, but the builing costs stay high- as always.

With the crashing real estate market stateside there are much better, cheaper and safer options than retiring in baja. South Florida, Nevada and Arizona come to mind. The price differntial was part of the charm of retiring to baja. was.




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Loretana
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[*] posted on 10-22-2008 at 11:15 AM
Baja Building costs


Bruce,

You can't be serious about the cost of materials and labor going down in the next two years!

My builder stayed with his original estimate from Oct '06 when we started construction last November, at $79.00 US per sq. foot.

Considering the expected inflation of prices here in Mexico (@ 7% yearly for goods and services) I feel quite fortunate.

And just last week, Cemex announced an 8% increase in the price of delivered concrete as well as other building materials across the board.

But, even if I was starting my project today, I wouldn't hesitate to build in Baja! Buena suerte. :D:dudette:




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[*] posted on 10-22-2008 at 11:20 AM


If you're unable to devote many hours per week in diligently pursuing cheaper materials, you'll end up paying full price and more (your faucet and their brothers). I saved about half the cost of materials buying on eBay, contractor supply stores, finding sales, etc., and spent about 40 hrs/week pursuing good deals on my 400 SF addition. Did my own painting, bought tile in TJ, had 3/4" solid oak flooring shipped from Georgia, etc.. Overall, I saved about $7,000. Maybe you can negotiate for the basic structure, and then find your own local labor for the interior and patios, and do it over a period of time. A contractor isn't going to shop for a special sale - he's just going to buy what he needs when he needs it, and he's got to charge you for the time he spends chasing materials. There are more factors in Baja CA dictating higher prices that are not relevant in the US.

[Edited on 10-22-2008 by wilderone]
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Cypress
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[*] posted on 10-22-2008 at 01:18 PM


Have written-off any plans to relocate in Baja.:( There're many places in the USA that are less expensive and the fishing is better.:D They come with title, electricity, water, and you don't have to jump thru all the legal hoops.:D Building materials? Available! Contractors? Take your pick. :D
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[*] posted on 10-22-2008 at 03:16 PM


Quote:
Originally posted by Cypress
Have written-off any plans to relocate in Baja.:( There're many places in the USA that are less expensive and the fishing is better.:D They come with title, electricity, water, and you don't have to jump thru all the legal hoops.:D Building materials? Available! Contractors? Take your pick. :D


Doubt that anybody will miss you here.
The desert is not good for you anyway. You're more like swamp people. Louisiana Bayou more your style.:biggrin:

[Edited on 10-22-2008 by vandenberg]




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Cypress
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[*] posted on 10-22-2008 at 03:46 PM


vandenderg, :D I'll miss my Baja friends, but you're right about the swamps. Guess that bayou mud is in my blood!:D The desert is a great place. Beautiful! Love it. Sort of like a one of those one night stands! Sweet memories!:D
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[*] posted on 10-22-2008 at 03:54 PM


Loretana check your U2U I am intending to build in Loreto next year.

[Edited on 10-22-2008 by Johannes]
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toneart
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[*] posted on 10-22-2008 at 03:57 PM


Quote:
Originally posted by Cypress
vandenderg, :D I'll miss my Baja friends, but you're right about the swamps. Guess that bayou mud is in my blood!:D The desert is a great place. Beautiful! Love it. Sort of like a one of those one night stands! Sweet memories!:D


Cypress,

"One night stands" can sometimes be the gift that keeps on giving. You may need to relocate to Baja for treatment.:rolleyes:




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[*] posted on 10-22-2008 at 04:04 PM


Quote:
Originally posted by Woooosh


With the crashing real estate market stateside there are much better, cheaper and safer options than retiring in baja. South Florida, Nevada and Arizona come to mind. The price differntial was part of the charm of retiring to baja. was.


don't know about building costs (we bought and built in ensenada in 2000) but property taxes are infinitely lower, as are costs for utilities and groceries (if you live more or less the mexican lifestyle). we continue to feel incredibly lucky to have bought and built when we did.




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[*] posted on 10-22-2008 at 04:11 PM


toneart, :bounce: Maybe? Baja is a sweet place. Lots of great people! :bounce:
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toneart
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[*] posted on 10-22-2008 at 04:44 PM


BajaBrucefan,

Like others have said, price of materials keeps going up. Labor is cheaper, depending on where you build.

In Mulege, labor is pretty high because the good ones are kept busy cleaning and fixing up after floods.One plus is, you find out very quickly who is dependable and skilled. The cream rises to the top fast. About three years ago I built my house for about $85 per sq. ft. That included the Fideocomiso (land banktrust title)The house itself was about $62 per sq. ft.

Of course,the river has flooded it two out of the last three years. But it is a beautiful house in a beautiful location, in a beautiful town, with great people, locals and gringos. After cleaning up from the first flood we got lots better at it, with far less stress. I would say it's no big deal. Considering what it cost, it was worth it. The floods are a nuisance, but it is worth it. Now we put all furniture and most appliances upstairs before leaving. Many of us, including me, had flood insurance.

What helps is that it is a solidly constructed house. It is not a palapa. Many other types of houses were ruined, but not ours.

What I mean to say is that I think the time has past for getting a good deal on construction in Baja. Several factors contribute to this; well publicized leases (mine is not) that are not honored or worse, the property is confiscated or even burned down; the economy turndown in the U.S.; well publicized border crime and violence; materials price rises; word of (bad)mouth and media attention.

Your best bet is to find someone who is selling out (not me anytime in the near future). Also, you really need to look around for where you would like to settle. Rent, ask questions, stay for a year before making any decisions. Many dreams become nightmares.

Also, whenever things get slow prices go up. You can count on it. It is a well proven Mexican tradition.

Good luck! I hope this helps. :yes:




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[*] posted on 10-22-2008 at 04:57 PM


Several years ago I was planning on either buying or building a home in Baja.
Now I am glad I bought a 45' diesel pusher. With the four slide-outs we have about 700 sq. feet of space and can make our patio anywhere we park.
We can be neighbors with any Nomads, (although our first one will be Osprey), plus we can move when flods or hurricanes approach.




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[*] posted on 10-22-2008 at 05:12 PM


For square footage pricing comparisons, space inclusions/exclusions can make for more fun than accurate currency exchanges.

Udo, hope to check our your rig someday, as that's lots of space for your vacation on wheels.




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[*] posted on 10-22-2008 at 08:22 PM


Please tell me where in the states its cheaper to build and there is better fishing than Baja
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[*] posted on 10-23-2008 at 07:17 AM


building in Baja is an exercise in patience, cunning, intelligence (do your homework), sleuthing to find the right guys at the right price and surrender. Do read God and Mr.Gomez first and be assured that this type of thing still happens.

You pay for what you get and everything depends on how fussy you are. If you want a "mexican style" place, you can still get them built rather cheap, but if you want gringo standards, well that's another story. There are lots of builders who have worked in the states who know what details gringos want and need but they charge more. Also you really either need to be present or have someone overseeing your project to make sure things go as planned...like the electrical outlets not being put 3' up the wall!

I have found over the last couple months that price also depends on how desperate the guys are for work. For example..for something not too complicated like a septic system...we paid 12,500 pesos for a nice big 3 chambered one for materials and labour....because the guy really needed work. I have heard of them costing around 25,000 which is a pretty big difference. A few days ago, a good builder came and offered his service to build another septic for even cheaper than our other one...so prices here reflect the need for work...they will undercut another guy to get the job.

Plastering can run from 40 pesos a square meter to 90 pesos so ya gotta shop around amigos. Also materials very greatly from place to place so as in all mexican shopping...ya gotta check all the stores to get the best price. This is why it pays to get your own materials instead of leaving it to the contractor...you will save ALOT.

Also when contracting the guys, I ask for a breakdown of prices..how much for the septic, plastering, floor, brick work per square foot etc....so you know their price is competitive with other crews....and sometimes to get the job, they will come down to the competitors price. Ya, it's a pain to do all that but saves a great deal of moola that you can spend on beer! And its helpful to know what things cost individually. I keep a little book on prices both what different guys charge and prices of materials from different places...some stores have cheaper wood, others have cheaper paint, tile, etc....

Try not to pay any money in wages in advance...set up a weekly labour payment and stick to it. Make sure you have all the materials on hand...the workers hate it when they show up and cant work cause the cement hasn't arrived...or sand, or gravel etc.
All materials have gone way up in the last year, especially in the last month with the dollar so high. Well, gotta put my hard hat on and head out to Gypsies site.




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[*] posted on 10-23-2008 at 09:26 AM


One of the best advise so far is: be on site during building no matter what!!
Look out for bids that are lower than others....what has been left out that
the other guy included in the bid. Always will cost more than you think.

Do not be in a rush to finish the house, as you live in it you will find out
how you use the space and will not have to rip it out!

I see so many people redoing their homes, don't know if they are
bored and want a project all the time or made a mistake in the way
they use the space. Take you time. :light:
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[*] posted on 10-23-2008 at 11:15 AM
Yep! Ya gotta be there.


If you are not there to oversee the "progress" you may run into something like my favorite story:

A guy tells the workers that he wants six electrical outlets in a room. He goes out for the day. When he comes back, sure enough, there are six outlets in the room..........all in a cluster, maybe six feet off the floor, taking up maybe a square foot of space. :o:o:?::?::?:




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[*] posted on 10-23-2008 at 12:10 PM


Quote:
Originally posted by toneart
If you are not there to oversee the "progress" you may run into something like my favorite story:

A guy tells the workers that he wants six electrical outlets in a room. He goes out for the day. When he comes back, sure enough, there are six outlets in the room..........all in a cluster, maybe six feet off the floor, taking up maybe a square foot of space. :o:o:?::?::?:


In my case they made, at my request, all outlets 12'' of the floor. So, in the kitchen all outlets were behind the cabinets.:P:P And to make it worse, the walls were all finished in decorative brick.:no::no:




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