October 2022

As mortgages have become more expensive, buyers have declined. This is true for both pre-built homes and for homebuilders like us that help people build their dream homes from the ground up. 

The decline was most notable in the summer months. This was just another signal of the slowdown in not just Canadian housing, but North American housing as a whole. The rising mortgage rates have decreased the demand for homes as central banks battle with inflation. 

Potential homeowners are shying away from the market because they are now being met with higher rates. Even current homeowners are feeling the pressure, as they now have higher rates than when they initially acquired their homes and relevant loans. 

In the first 6 months of 2022, prices have fallen by approximately 9%. This is the seasonally adjusted percentage. This data was retrieved from the National Real Estate Association. Steeper price declines have been seen in the suburbs around the largest cities in Canada, making moving outside of a city the best option for those looking for affordability or more house for the money. 

How Building May Be the Best Option

Building a home may be your best option whether you are just entering the property market, looking for an investment property, or considering upgrading to your forever home. Here are some benefits of building instead of buying. 

Build A Home Tailored to Your Lifestyle 

No matter what you want in your home, building from the ground up is the best way to meet your needs. You can create a huge entertaining area or design your own scullery. When buying a home, you are limited to choosing from homes that won’t have all the things you want. 

Create Spaces that Accommodate Your Growing Family 

If your family is growing, you need to factor that into the size of your living space. How many bedrooms and bathrooms will be ideal for you and yours? Would you want to have a dedicated home theater room, or do you need space for a pool? 

Future Proof Your Home With the Use of Smart Technology 

Technology is moving at a rapid rate, and if you don’t want your home to become obsolete, you should consider smart technology. The best way to incorporate the newest technology is to build your home with the newest technology of the time. 

Newer appliances tend to be more energy efficient and include smart technology so you can control them remotely. These types of features also make a home more attractive to buyers if you are choosing to build an investment property. 

Create an Eco-Friendly Home 

Eco-friendly homes are getting very popular, as most people are trying to reduce their carbon footprint. An eco-friendly home will also help you to save money, and improve your health while supporting the environment. We can tie in point 3 above here when it comes to energy-efficient appliances and technology that can be controlled remotely. All of which can cut down your carbon footprint. 

You have all the Creative Control 

You get to decide the floor plan and where to place that beautiful fireplace. There is no need to settle for a home with awkward spaces and random walls. You get to create a home that is 100% yours. 

Easier Re-Sale Process 

A smart, eco-friendly home built with newer construction materials, new appliances, and technology will sell easier in our current market. This type of home will save a new homeowner time and money on replacements and renovations. No buyer will want to pass up this type of advantage.

Less Competiton in the Market when Buying Land 

Unlike homes, the market for land is not as full of competition. You won’t have to battle with crowds at open houses and the competition going over asking. 

If you think you may be in the market to build a home, SilverBeam Homes is an independent residential home builder that is committed to helping you design the home your lifestyle desires. Find out how we can help make your dream a reality by contacting us today. 

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The cost of building your dream home in Canada will vary between provinces, but there are other factors. Prices can range from $120 to $250 per square foot, so the average cost would be $185. This takes the estimated cost for a 2,000 square foot home in Canada to around $370,000. When it comes to Vancouver, the averages are higher, ranging between $430 to $1090. 

Let’s provide you with the details and information as well as the necessary steps for constructing a home in Canada. This can help you to make the best informed decision for you and your household. 

The Real Costs of Building a Home

Cost # 1 – Buying Land 

Land is likely going to be your biggest expense when it comes to building a home. If you are looking in an urban area, you will find that land alone could cost as much as an existing home. This is why you often see real estate investors buying older buildings, demolishing them and rebuilding them from the ground up. But if you are willing to move out of the city and into a rural area, you will find land available at more affordable costs. You will be able to purchase a larger lot at a lower price, so you are left with more budget to build your dream home. 

Cost # 2 – Preparing the Land 

Now that you have sourced and purchased your land, you will need to clear any debris on the land. This could include rocks and trees, etc. Preparing the land also includes setting your foundation, and depending on where you purchased your land, you may have to connect water lines, add drainage systems and power lines. The latter tends to be necessary when you purchase land in rural areas that are still mostly untouched by civilization. 

These tasks will vary in cost depending on the land itself. There are some properties that will require more work than others based on the time of year, the current market etc. If you want an estimate, you can give us a call so we can visit the property and let you know what you can expect to pay if you choose us as your builders. 

Cost # 3 – Builders Risk Insurance 

This insurance provides coverage for worst case situations. This cover is important during a construction project, and during renovation projects as well. When you do not have this cover, worst case scenarios can lead to major losses. Sometimes this loss may be minor, but sometimes it can be major, such as irreparable damage to the structure of your home. 

What Does Building Risk Insurance Cover?

This type of insurance is ideal for when a building is being constructed. The insurance covers the building itself, as well as tools, equipment, machinery used in the construction of the building. The coverage offered during a renovation job is the same. 

When a building is under construction, it is exposed to multiple risks. Many of these are due to uncontrollable environmental factors, such as high winds or even flooding. And sometimes it’s just an accident that occurs, causing major damage. 

The policy price will often dictate the extent of what is covered or not. It also indicates what sort of damage is covered and what requirements need to be met before a payout can be made. 

Cost # 4 – Obtaining Building Permits

To build your home, you will need permits from your municipality. The fees for these permits vary from city to city, and different areas may have different cost structure setups. You can find the current schedule of fees as of September 2022 for the city of Vancouver here. 

Cost # 5 – Architecture Planning

It is recommended you reserve 12% of the estimated cost of your home for architecture fees. This cost again varies depending on where you choose to build your home. If you already have a home plan, this offers a reduction in costs by a few thousand dollars. If you would like to have a professional review your existing plan and make changes, this will incur a cost, but maybe not as much as having them create a whole new plan. 

Cost # 6 – Construction Costs 

The cost of construction mainly consists of materials and labor. The total costs have a lot to do with your choices of materials and the company you hire. As such, it is challenging to provide a cost estimate without knowing your specific needs, goals and dreams. 

Contact us today so we can help you build the home of your dreams. We can help you every step of the way and have a team of professionals working alongside us to help make your dream of owning a home become a reality. We will help you every step of the way, where we can’t assist you ourselves, we will put you on to a professional that can assist you at any stage or phase of the home building process. Give SIlverBeam Homes a call today!

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