Building your own home, is that one of your dreams? Sure is for many. You go on dreaming and dreaming, do some checking with the building department in regards to how much the permits would cost you. You keep on checking, occasionaly, what else it takes. In the meantime, you are looking for that (affordable ) dream lot.
After some time, maybe even years, you have finally found it, a great piece of land! A thousand butterflies in your stomach, close to panicking "What if somebody else bids higher than me"? You already lost out on another 3-4 properties but THIS TIME, it is just right.
Strangely enough, even though you don't think its strange, since you kept such a close eye on the market, you've now fund THIS property within a couple of days since it came on the market. You make an offer and it is low because you know, no matter what you offer, they will counter higher. Finally, you reach an agreement,
You do your inspections, check for buildability etc. and decide to move ahead. Un-fortunately, you did not have enough cash to buy it for cash, out-right. Now, you are making payments on your precious piece of land and soon, soon it will be yours.
Everything changes. It is not a sellers market anymore. Foreclosures due to bad loans, keeps increasing. The market collapses. People are getting laid off due to stores closing and the bad economy. The financial picture of the state of California keeps getting worse. What else could happen?
Well, I spoke to my contractor friend yesterday and what he told me, was not fun. He had talked to a building inspector that in turn, told him, that when it comes to building a new home in the county of Los Angeles, it is no longer going to be enough to do the standard inspections after each phase of the construction of your new home.
It is suggested, and from what I understand, also decided, that when building a new home, an inspector has to be present during the WHOLE building process! Wow! Keep in mind, this is what I heard. I have NOT checked on it yet and if you are planning to build, please check carefully with the appropriate authorities.
Personally, I have no idea how many hours, weeks or months it takes to build a new home, I can only imagine. However, whatever it is, you are going to have to pay for that inspector, being present throughout the whole process. Would it take 300 hours? What do they charge per hour? $40, $60, $75?
$40 an hour times 300 hours will cost you another $12,000. $60 an hour would be $18,000 additional. $75? Add on another whopping $22,500. Without further speculation (and doom and gloom) my first phone call this morning will be, you guessed right, to the building department!
So, if all this is true, home builders are now going to have to pay for (hire) a state employee to watch your construction efforts. Would you also have to supply them with a digital camera with un-limited batteries and or, a high definition video camera, down loaded on a daily basis (and for a fee) to the building department? One can only speculate!
How many new homes are being constructed in the county of Los Angeles on an annual basis? 5,000? 15,000? 30,000 or more? What a clever move! Not only do you have to pay your taxes, you are also required to pay (hire) a state employee! I don't dare to guestimate what else they will come up with next.
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