Building Your Dream Home in Orlando
Are you considering building your dream home in Orlando, the enchanting ‘City Beautiful’? It’s a thrilling prospect, but one that comes with a price tag and time commitment. Let’s delve into the costs, considerations, and financing options to help you make an informed decision.
The Cost Breakdown
The average cost to build a house in Orlando ranges from $200,000 to $440,000. This figure averages at $320,000, excluding expenses like land, permits, and excavations. Here’s a detailed breakdown:
- Per Square Footage Cost: It’s approximately $160 per square foot to build in Orlando.
- Material Costs: Framing lumber is the highest material cost, amounting to about $33,000 for a 2,000 sq. ft. home.
- Construction Time: Homeowners typically spend 9 to 12 months building their house, whether they manage it themselves or hire a contractor.
Is Building Cheaper than Buying?
In most cases, buying an existing home in Orlando tends to be more cost-effective. When building, you need to factor in land expenses, permit fees, and other incidentals. As of May 2023, the median sale price of a home in Orlando is $390,000.
Building Your Dream Home: The Breakdown
Let’s take a closer look at the costs associated with building a 2,500 sq. ft. house in Orlando:
- Material Costs: Around $100,000, accounting for approximately 50% of the total building price.
- Contractor Charges: Expect to pay 10% to 20% of the total construction value for a contractor’s services.
- Electrical Costs: Roughly $7,500 to $12,500, depending on factors like wiring type and size of the property.
- Roof Installation: This can range from $3,100 to $35,500 based on roofing material and house size.
- Plumbing Costs: Around $12,000, covering fixture installation and pipe work.
- HVAC Installation: This typically costs between $1,500 and $12,500.
Additional Costs and Considerations
- Land Cost: If you don’t already own land, budget around $37,000 per acre.
- Permit Costs: Allocate around $5,000 for permits, which can vary based on construction type, area, and project scope.
- Interior Furnishings: Plan for at least $20,000 for furnishing a 2,500 sq. ft. home.
- Interior Designer Costs: If you choose to hire a designer, budget around $5,400.
Financing Your Dream Home
If you’re exploring financing options, consider the following:
- Construction-to-Permanent Loan: This covers both land purchase and construction costs, converting to a conventional mortgage after completion.
- Construction-only Loan: This specifically finances the building process and is due in full upon completion.
- Personal Loan: For specific construction needs, a personal loan can be a helpful resource.
- Home Equity Loan: This is an option for existing homeowners looking to finance their new construction.
Final Thoughts
Building your dream home in Orlando is an exciting endeavor. If you have the ideal piece of land, a vision, and the time to invest, it can be a highly rewarding venture. However, it’s important to weigh the costs, time commitment, and benefits against the convenience of purchasing an existing home.