Neil,
200,000 US would be an inexpensive house in the Atlanta Georgia area. If you get 60 miles out of the metro area, the same price will buy you a nice house. Location, Location, Location, that is the old house buying/building saying around here. Because you are interested, here are a few examples. A lot across the street from me---old established neighborhood in a desirable area (75’x150’ lot)--- sold for $250,000 to a builder. The house is at the stage where they are running trim, I would guess it about 3500 sq ft, it is under contract and is selling for $780,000. This week I am working in a house that is 5600 sq ft and is on the market for 975,000. That works out to $174 a square foot asking price. The builder bought an existing older house on a large lot and moved the existing house to build this one. Several of the builders I work with have been building in areas considered less desirable in the city. They buy up lots for delinquent taxes and spend an additional 10 – 20,000 in legal fees to get clear deeds on the property. They then build a 2000 to 2500 sq ft house on it and sell in the 300 – 350,000 range. I wouldn’t let my dog live in some of these areas but the builders are having an impact and the neighborhoods are changing for the better.
You are right that labor costs are hard to compare. For me, an unskilled, no experienced labor starts at $10 per hour. These are the guys that hang on the street corner looking for day work. Full time guys start at $15, jump to $20 in 6 months and the guys that have been around for awhile get $25 to $40 depending how good and how long they have been with me. This is what we have to pay them, not how it would equate in the over all building cost. Keep in mind that this is a larger city and costs are higher. If you do that same 60-mile trip out of the metro area, wages drop considerably.
MarkV
