By Mark Moyle
One of the most dreaded question a builder is asked is “how
much does it cost per square foot to build?” The worst part about this question
is that the individual asking the question usually has a preconceived number in
their head and does not really want to hear anything else. The conversation
usually ends up as an unfriendly debate between the builder and a new property
owner …….
The new property owner has done his research and states “some
guy at the bar told me he can build a house for $100 a square foot”
While the seasoned builder knows from years of firsthand
experience that the “guy at the bar” is blowing a lot of smoke at the new
property owner.
Well, building for $100 per square foot is not entirely
impossible. Get a local draftsman to reproduce a simple rectangle on a piece of
blue paper, manage the entire project yourself, convince your friends and
family in the industry to give you insider deals, beg, steal and borrow all the
materials you can, source illegal immigrant labor, use cheap windows and doors
from China, cheat customs duties, forego baseboards and trim, use clearance
discounted floor tiles, slap on a coat of no-name paint, fashion cupboards on-site
out of left-over roofing ply. You’ll get yourself a kitchen, laundry, two
bedrooms, living room and one bathroom in 1,000 sqft for $100,000.
And it will look something like this….
Unfortunately the Devil is in the Details. If you want
something more like this….
Here are the numbers
|
Estimated
|
Per SQFT
|
Running Total
|
Base
Structure Cost & 1,000 square feet
|
$100,000
|
$100 sqft
|
$100 sqft
|
Add Local
Building Contractor’s Profit
|
$20,000
|
$20 sqft
|
$120 sqft
|
Add
central Air Conditioning & Insulation
|
$20,000
|
$20 sqft
|
$140 sqft
|
Upgrade
Roof to Spanish Tile
|
$15,000
|
$15 sqft
|
$155 sqft
|
Add
Decorative Architectural Features - Interior
|
$10,000
|
$10 sqft
|
$175 sqft
|
Add
Decorative Architectural Feature - Exterior
|
$10,000
|
$10 sqft
|
$185 sqft
|
Upgrade
Windows and Doors
|
$10,000
|
$10 sqft
|
$195 sqft
|
Add
Generic Appliances
|
$5,000
|
$5 sqft
|
$200 sqft
|
And don’t forget about the exterior curb appeal
Add an
Allowance for Exterior Hardscapes (Driveway, Fence, Paths)
|
$20,000
|
$20 sqft
|
$220 sqft
|
Add an
Allowance for Landscape (Turf, irrigation, plants)
|
$30,000
|
$30 sqft
|
$250 sqft
|
This would be at the higher end of the typical Bahamian
homeowner’s expectations. Not just a dwelling to survive in but rather the A/C
chilling, kids playing in the yard and dinner in the oven.
$250 a square foot!
Now the problem is that these days, for most young
professionals and second home owners that are actually out researching the cost
of building in the Bahamas, is that the above house is entry level. So let’s go
back to the original base structure of $100 a square foot and estimate a 5,000
sqft custom home that will require an extremely capable team a year and a half to
build and see what else we can add to our list of needs and wants :
|
Estimated
|
Per SQFT
|
Running Total
|
Base
Structure Cost & 5,000 square feet
|
$500,000
|
$100 sqft
|
$100 sqft
|
Add an Internationally
Recognized Design Team (Architects &Engineers)
|
$375,000
|
$75 sqft
|
$175 sqft
|
Add Owner’s
Representatives (Accountant & Project Manager to make sure the architect
and contractor behave)
|
$300,000
|
$60 sqft
|
$235 sqft
|
Commercial
Building Contractor’s Overhead & Profit (General Conditions)
|
$750,000
|
$150 sqft
|
$385 sqft
|
Fleetwood
Hurricane Proof Doors & Windows
|
$350,000
|
$70 sqft
|
$455 sqft
|
Extensive
Reinforced Concrete Architectural Features & Hardscape
|
$300,000
|
$60 sqft
|
$615 sqft
|
Infinite
Swimming Pool with Wrap-around Ipe Deck
|
$150,000
|
$30 sqft
|
$645 sqft
|
Exotic
Hardwood and Stone to Interior & Outdoor Surfaces
|
$200,000
|
$40 sqft
|
$685 sqft
|
Interior
Exotic Hardwood Door & Trim Package
|
$150,000
|
$30 sqft
|
$715 sqft
|
Sophisticated
Textured Finishes to Interior & Exterior Walls (that don’t have exotic
wood and stone on them)
|
$100,000
|
$20 sqft
|
$725 sqft
|
Poggenpohl
Cabinets & Countertops
|
$275,000
|
$55 sqft
|
$780 sqft
|
Lutron
Whole-House Lighting and AV Controls
|
$125,000
|
$25 sqft
|
$805 sqft
|
Waterworks
Plumbing Fixtures Throughout
|
$50,000
|
$10 sqft
|
$815 sqft
|
Restoration
Hardware – Electrical Fixtures & Bathroom Accessories
|
$50,000
|
$10 sqft
|
$825 sqft
|
Viking
Appliances
|
$50,000
|
$10 sqft
|
$835 sqft
|
High Level
MEP Specifications & Infrastructure (High Seer AC, Schedule 80 pipes,
etc)
|
$75,000
|
$15 sqft
|
$850 sqft
|
Landscape
& Irrigation Budget
|
$250,000
|
$50 sqft
|
$900 sqft
|
Back-up
Generator, RO Water Maker and Associated
Storage & Equipment
|
$250,000
|
$50 sqft
|
$950 sqft
|
Change
Orders
|
$250,000
|
$50 sqft
|
$1000 sqft
|
That’s right. This whole program can get up to $1,000 a sqft
and often does when the uber-rich wash up on a beach here. This is also by no
means a limit. Until a few years ago, I had not heard of Fleetwood Windows
& Doors but I believe they are the best manufacturer of doors and windows
in North America. Now I have clients asking for Windows and Doors made in
Switzerland that cost three times as much. That’s three times as much to buy,
three times as much on shipping and import duty and three times as much to fly
some Swiss specialists over to install them.
But coming back down to earth. This blog is to help you get
an idea of what your house is going to cost to build in the Bahamas. Most of
you are going to fall somewhere between $250 and $500 a square foot because you
want a nice house with a few trimmings but don’t need all of the above. I am
going to write another blog about those trimmings to give you an idea of what you
really want and what you really don’t need. In the meantime, please don’t
listen to the guy in the bar. Please don’t listen to me either. There are
highly trained and experienced experts in the Bahamas that specialize in construction
costing and for a small fee they will
give you an official estimate of what your costs will be. Treat it like a business
plan and consult with them before you even purchase a property to build on. It
may be the best money you never spent.
These are two of my favorite firms. If anyone knows of any
other good ones, please let me know and I will add them to the list.
And just in case you are huffing and puffing at my numbers - have you ever traveled around this beautiful archipelago, such a short distance
from the USA, and asked yourself why there are so many glorious beach front
and ocean view properties that have real estate signs on them instead of
houses?
Happy tourist sees beautiful beach front property for cheap.
Happy tourist is told by guy in bar he can build for $100/sqft.
Happy tourist is told by real estate agent it is possible to
build for $100/sqft.
Happy tourist is told by conveyance lawyer it is possible to
build for $100/sqft.
Happy tourist is told by architect it is possible to build
for $100/sqft.
Happy Tourist has a budget of $500,000 and therefore
commissions architect to design a 5,000 sqft house (with swimming pools, custom
kitchens, etc)
Happy Tourist gets three quotes which average $2.5 million
to build the house
Very Unhappy tourist convinces himself the local builders
are out to get him so he calls up his friendly real estate agent to plan a
quick exit from the Bahamian Property Owners Club
Labels: bahamas, Bahamas real estate, building costs, construction, out island life, POTENTIAL INVESTOR & HOMEOWNER INFORMATION, square foot costs