Is it profitable to build private houses for sale? Which is cheaper - to build a house or buy a finished one - we conduct research. Communication with realtors and developers allowed us to identify several groups of private developers with different strategies in the market

Building houses for sale is one of the most lucrative businesses out there. But nothing is free, and therefore this business is one of the most expensive. Moreover, large investments are required constantly, for each new building. But if you are still driven by the desire to create a large business, building houses for sale can become a source of considerable income for you. How to open a construction company and what you need for it, we will tell you in this article. We also recommend that you read the articles: and

How to Build a Business - Building Homes for Sale

Building homes for sale may seem like a daunting and far too far-fetched method of making a profit. But in fact, it is not that difficult. At the registration stage, in addition to the standard procedure, you will need one more - membership in an SRO. SRO is a self-regulatory organization that will allow you to engage in construction. Without membership, your buildings will be illegal.

  • Earth
  • Workers
  • Technics
  • Materials

Where to get land for the construction business?

You can't build on empty land just like that, you have to buy it. If you are planning to build up a cottage town, then buying land can be a good investment. Indeed, after its improvement, its price will soar several times. Moreover, the sale of a cottage with land will bring more profit. But at the same time, for the construction of an apartment building, the required land area is much less. Enough of a plot commensurate with two or three cottages. And the land costs will pay off faster.

Also, to start construction, you will need land surveying, ground measurement, and communications. It is logical that for an apartment building this work will be needed much less. Therefore, many construction companies prefer to start with the construction of high-rise buildings.

Wage-earners

In addition to the obvious team of builders, such a company will require other specialists. These are planners, designers, programmers, lawyers, accountants.

In a business like building houses for sale, there have been some changes compared to previous years. Today, the hiring of builders is much more serious and scrupulous. "Guests of neighboring countries" without registration and work permit may result in a large fine.

As for lawyers and accountants, you will not need their services on an ongoing basis. Therefore, in order to save money, it would be wiser to hire an incoming specialist or outsource this work.

Technics and equipment

Many start-up firms use rented equipment. But at the first opportunity, it is better to buy the equipment, you can gradually. To build houses you need the following equipment:

  • Heavy construction machinery
  • Equipment for working with concrete and other solutions
  • Equipment for cladding works
  • Lighting

If your company will be engaged in repairs in finished buildings, then you will need equipment for repairs.

Heavy construction machinery - this is the most necessary and expensive equipment for buildings. This includes cranes, bulldozers, tractors, drilling rigs, etc. Most often they are acquired on lease.

Equipment for working with concrete is cheaper, so it is possible to buy it immediately. These are concrete mixers, concrete pumps or mixers, pneumatic pumps, a plastering station, a bucket for mortars, etc.

Facing works are carried out using formwork, scaffolding and scaffolding. Sometimes they are replaced with conventional cranes when it is necessary to carry out work at the very top. Temporary lighting is required at the construction site. For this, xenon lamps with white light are most often used, since they are able to illuminate distant objects.

Building materials

Materials for each type of house will be different. For multi-storey panels, panels are usually used. Due to the large panel area, such a house is "assembled" rather quickly. True, panel houses require additional insulation, otherwise it will be cold inside in winter.

Brick is one of the most expensive and highest quality building materials. Brick houses are in the greatest demand. True, the cost of expenses here is much higher than that of panel ones. Hence, the final price of housing will be high.

For cottage buildings, frame technologies are widely used today. The cost of building such houses is relatively low.

Conclusion

In order to open your own construction company, it is best to start from the outskirts of the city. Due to the high profitability and age of this business, the competition here is impressive. But all the same, every time new and new developer organizations appear, which find ways to get out and confidently exist side by side with the "old-timers".


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The business of building properties for sale is the most profitable and most costly of all. But if you organize it correctly, it can give high and stable income.

First of all, you need to decide what you will build for sale - country houses, cottages, townhouses or apartment buildings. It is believed that one of the most profitable areas is the construction of cottages.

Company registration

In addition to this registration, you need to become a member of a special self-regulatory organization (SRO). Only membership in such an organization allows building houses legally.

Building land

An excellent investment is to buy land for the construction of a cottage town. After it is landscaped, its price will increase several times. And you can sell cottages together with land, which will only increase your profits. But buying large areas is expensive. The idea of \u200b\u200bbuying land for an apartment building looks more budgetary. It is required much less and it will pay off much faster.

Also, less communications need to be brought to an apartment building, it is easier to measure the land and land it surveying. That is why construction firms like the idea of \u200b\u200bbuilding apartment buildings more.

A separate question is where exactly to look for land. Again, if we are talking about apartment buildings, it is better to start exploring the outskirts of the city. There competition is significantly lower and no one will bother a newcomer in this business to gain the first experience. But even on the outskirts, you need to choose a crowded place in a popular direction. Consider the local landscape - people care about the view from the window.

You can choose a suitable site if you pay for the services of a realtor. Usually, such a specialist is aware of what is on the market, at what prices, and will help you find a suitable option. You can also find a site through special auctions, but this solution requires additional financial costs.

Preparatory work

Before starting construction, it is necessary to conduct a soil analysis in order to know exactly what kind of foundation should be laid for the construction of houses. These services are provided by a geodetic service.

After its conclusion, it is necessary to contact the specialists for the formation of project documentation. In addition to the actual project of houses, you will need a lot of related permits, so it is better to contact specialists for this documentation. With this package of documents, you need to go to the regulatory authorities for approval.

They issue technical specifications for all the necessary communications: water supply, sewerage, power grids, and so on. These works should also be carried out by specialists of the appropriate profile.

Building

Now it's worth looking for people who will carry out the actual construction. Hiring a construction company is unprofitable - it will take the bulk of the income. A hired team will be cheaper. True, in this case, you will have to often visit the construction site and monitor the progress of work. Also, pay attention to the fact that each builder has a work permit and residence permit, otherwise you face serious fines.

In addition to the construction team, you need to hire accountants, lawyers, programmers, designers, planners and so on. However, since their services are not needed all the time, you can hire them for project work or outsource these services.

Equipment and technology

To organize the construction of houses, you must have the following equipment:

  • Lighting: Xenon lamps with white light.
  • For facing work: scaffolding, scaffolding, formwork.
  • For working with mortars: plastering stations, pneumatic pumps, mixers, concrete mixers and other equipment.
  • Heavy construction: drilling rigs, tractors, bulldozers, etc.

At first, it can be rented, but preferably with a purchase option, if you plan to run a business with more than one project. Heavy equipment is almost always leased because it is quite expensive. It is also worth gradually purchasing equipment for renovation if you plan to sell houses with ready-made renovations.

Construction Materials

Building materials for homes depend on what type of housing you choose to build your business on. For multi-storey buildings, panels are used that allow you to quickly erect a building frame. But they require additional insulation.

The highest quality, but also the most expensive material is brick. The costs of such construction are high, the sale prices are thinner significantly higher than panel houses, but such houses are in very high demand.

Cottages are being built using frame technologies. They are relatively inexpensive, the prime cost of houses is low, but the demand is consistently high. That is why it is believed that the construction of cottage townships is a very profitable business.

To reduce the cost of building materials, you need to go directly to suppliers. This will save you about 20% of the money allocated for the purchase of raw materials. But in no case can you save on quality.

Expenses and income

It is easy to guess that the business will require significant investments at every stage of work: land purchase, design documentation, work of contractors, building materials, finishing work, etc.

The total cost of work, as well as the cost per square meter, is very different, depending on the region of Russia. For example, if you are building your business in the middle lane, then per square meter you can set prices of 20 thousand rubles, while in large cities - up to 40 thousand rubles. On average, having invested 2 million rubles in a project, it can be sold for 3 million rubles.

How quickly the business will pay off depends on the class of your construction. Economy-class housing is sold faster, but the income from it is, in the end, less than from luxury housing.

Determine if you have sufficient funds, the ability to take out a loan for an independent start, or you need to attract investors. If you already have funds, you can create an individual entrepreneur; to attract a large amount from the outside, the organization of an LLC will be the best choice.

Research the demand for real estate in your area. Depending on this, you should choose the direction of activity: the construction of townhouses, cottages for sale or wooden houses to order.

When drawing up a business plan, you should take into account the seasonality, the average cost of housing in your area and the purchasing power of the population. The demand for housing construction is very high, but it is better to start with a narrow specialization and choose the most popular options that allow you to reach payback in the shortest possible time.


Main risks

The competition in the construction industry is high. A beginner needs to choose a narrow specialization and offer customers the highest level of service. Your advantage is the ability to concentrate on the little things. Large construction companies do not have this opportunity due to the peculiarities of the management organization.

Seasonal dependence. All stages of cottage construction can be carried out in spring and summer. With the proper organization of work and the availability of sufficient funds to ensure turnkey construction in full, you can start selling a house in the fall. If these conditions are not met, the risk of freezing construction until next season is very high. Before getting started, make sure that you have everything you need to complete the project by the planned date.


Location

The company's office must be located in the central or business district of the city. Here you will hold meetings with clients and partners. Also, designers, accountants, customer and supplier managers will work in the central office.

A room for storing equipment and manufacturing prefabricated timber houses should be located in an industrial area or on the outskirts of a city. Production and storage facilities are suitable. An important point is a convenient transport interchange and the ability to bring the communications necessary for the activity.

If you specialize in the construction of cottages or townhouses and their subsequent sale, the question of finding a site for construction is added. Examine the city's development plans. It is not profitable to build houses in a remote village, which lacks modern infrastructure and convenient transport links. Look for vacant lots in a crowded area, with communications and in close proximity to schools, shops, medical facilities and other infrastructure facilities.

Enter into an agreement with a realtor who will provide you with information on the average cost of housing in each area. Having chosen interesting sites, order soil analysis from the geodetic service.


Equipment

It is not worth purchasing expensive construction equipment. Depending on the project, at each stage of work, you can rent the necessary equipment with personnel from companies specializing in providing such services. Buy only those tools and equipment that are necessary for your work on a permanent basis.

If you are planning to sell finished timber houses, the situation is different. The logging team should be equipped with chainsaws and other tools for logging. Means for transporting wood to the assembly site can be rented. Assembly, which is best done in winter, is also done using chainsaws, electric planers, and a standard set of carpentry tools. You need a mini-power station to work. The approximate cost of a set of equipment for the work of one brigade is 50-60 thousand rubles.


Personnel

For the construction of frame houses, it is necessary to hire a team of lumberjacks (5 people) in the summer. The assembly must also be carried out by 5-6 qualified technicians who are hired full-time by the company owner.

For a permanent job in a company specializing in the construction of turnkey houses, a few people are enough:

Leader.
- The foreman.
- Manager.
- Accountant.
All other employees can be engaged on a contract basis, depending on the stage of work.
Look for companies and teams with a narrow specialization:

Design.
- Excavation.
- Erection of walls.
- Internal works.
- Laying of power supply and communications.
- Water supply.
- Finishing work.
- Landscaping.

There are a lot of proposals for each of the points. Having chosen the best options in terms of the cost of services, the quality and timing of the work, you can further conclude with each of these teams or firms a cooperation agreement for the construction of the following facilities.


Documents and licenses

For low-rise construction, you do not need to obtain a license and become a member of an SRO. It is enough for the owner of the company to register an individual entrepreneur or LLC with the tax office and choose a convenient type of taxation.

If you have permanent employees, you need to register a company with the employment and social insurance service. Building permits are issued by local authorities. When designing an object, you must agree on all the nuances with the architectural bureau and the fire safety service.


Payback

Much depends on the average cost of housing in a particular region. On average, the cost of building a small house for one family, subject to cooperation with wholesalers of building materials and proper organization of work, is about 2 million rubles. The selling value of such houses is around 3 million rubles. During one season on the construction of one house, you can earn 1 million rubles.

The profitability of the construction of finished wooden houses reaches 30-40%. With the correct organization of the company's activities, it is realistic to reach a payback in a year and a half.


Marketing

The main condition for success is quality, comprehensive service and speed of work.


Summary

The home construction business is highly profitable. Having developed a real business plan and choosing the most demanded direction, you can attract investors and reach a payback within 1-2 years.

Good day. My name is Egor Kirichenko, I am from Krasnodar Territory. For the last ten years I have been building houses for sale. I started working alone, and each time I found a new team for construction. At the moment, I organized a company (LLC), there is a permanent staff, its own designers and builders. This approach allows you to quickly build houses and hand over the finished building "turnkey" to the customer.

Business parameters:

  • initial costs - from 300 thousand rubles;
  • number of employees - 20 people;
  • several offices in the area;
  • monthly income (depends on the volume of orders) - from two million rubles.

How to start a business building houses for sale?

Building houses is one of the most promising and profitable types of business. This does not require proof - it is enough to estimate the demand for housing in large cities and beyond. At the same time, both residents of the Russian Federation and foreign citizens act as buyers.

To quickly get a business on its feet and make a profit, proceed in the following order:

1. Develop a unified conceptwhich will be observed in the future. There are several important points here - consider the importance of all communications, the availability of the Internet and telephone communications.

The area of \u200b\u200ba good plot is up to 15 acres, an entrance is required, the presence of a pond (river, lake), as well as forests nearby. The participation of the client in the development of the project is very desirable - he can make amendments to the issues of decoration, planning of structures, the shape of the house, and so on.

2. Decide how you will work- independently or with the help of an investor. Please note that the purchase of a land plot, the purchase of building materials and the remuneration of workers are significant costs.

A good option is to open a construction company and conduct construction after receiving an advance payment from the customer. In this case, you can quickly solve financial problems and speed up the construction process. On the other hand, the risks increase, because you have financial obligations to the client.

3. Choose an area for development.We have already partially mentioned a number of criteria, but this is not all.

Pay special attention to the infrastructure around the facility, proximity to the city, the availability of transport, the environmental component (is there any harmful production nearby), the possibility of building additional facilities, and so on.

4. Decide on the type of building.

There are several options here. The most popular is the cottage.

Many people dream of such a house, who want to get out of the city "hive".

As a rule, a cottage has two floors and is intended for one family. Near the house there must be a plot of five acres or more.

Town houses are a mixture of a cottage and an ordinary apartment. Their peculiarity is a small number of storeys (1-2 floors) and a separate entrance to each apartment. It is possible to build town houses not only outside the city, but also within the metropolis.

The best material for construction is red brick, but aerated concrete or wood can be used. According to experts, in a few years, such buildings will completely replace cottages. Their advantage is convenience and lower price.

5. Buy a plot - one of the most important stages, which will require certain approvals and, of course, costs. After choosing a site, a whole range of activities is carried out.

To begin with, sketches and a general construction plan are developed. This work takes into account everything, from the type of foundation to the arrangement of the area around. A topographic survey is required.

Next is the most laborious stage. You need to approve the construction plan, agree on controversial issues and obtain a permit to build a house. Once all the issues are resolved, you can start building.

Total costs at this stage can range from 300,000 rubles.

6. Hire qualified builders with good work experience.To build a house, you will need specialists in foundation laying, cladding, roof construction, heating and sewage installation.

You definitely need an electrician who will do the wiring taking into account all the requirements of PTE and PUE. At the initial stage, a hired team will be sufficient, but in the future it is better to have your own personnel on hand.

Payment for labor can be made upon delivery of the object, daily or weekly (by agreement). The average salary of an experienced builder is 1000-1500 rubles per day.

The total cost of salary payments is from 150 thousand rubles per month.

7. Calculate costs (we have already mentioned them above) such as the purchase of land, building materials, payment for project documentation, and so on.

As a rule, about 30-40 thousand rubles are spent on the construction of one "square" of housing. Having built a house with a cost of 3 million rubles, and selling it for 5 million rubles, you can get 2 million in net profit.

What is the best material to use in the home construction business for sale?

I am often asked the question of what is the best way to build houses. There are several options here. Brick comes first. Its advantages are reliability, low cost and decent appearance.

If desired, the built house can always be finished to your liking. Moreover, a brick cottage will last much longer and is guaranteed to protect against natural disasters.

The main thing is not to save on wall thickness, which should be at least "one and a half brick lengths". According to statistics, almost 50% of houses are built using this material.

The second most popular is wood. Today, glued (profiled) timber or rounded logs are becoming more and more popular. The advantage of such houses is the absolute naturalness of the material.

The house literally "breathes", it is filled with the scent of natural wood. The main disadvantage of buildings is their "weakness" for fire. But, despite this, wooden cottages are being built more and more often. You can give preference to the combined option when two types of material are used - brick and wood.

The third option is the construction of buildings from sandwich panels. So far, such houses are being built very rarely. Their advantages are excellent thermal insulation; it is always dry inside buildings (even without heating).

Over the years, the walls hardly shrink, which for many is the main advantage. In addition, houses made of sandwich panels are quickly erected. Minus - low service life (about 40-45 years).

At the same time, regardless of the material chosen, you can make any type of decoration - brick, natural stone, stucco and so on.

There are many possibilities for decoration - all that remains is to agree on plans with the customer and put them into practice.

You can read about the latest news and business trends with a franchise

What does a business plan for the construction of timber houses look like in terms of cost and profitability?

Against the background of the popularity of wooden houses, you can safely try yourself in this industry. Moreover, several directions are available here.

So, you can build timber frame houses, cottages from rounded logs, log structures (hand-assembled), and buildings from profiled glued beams.

The most budgetary option is timber frame buildings. They are warm, but in terms of environmental friendliness and comfort, of course, they are inferior to their "older brothers". Houses made of rounded logs are 10-15% more expensive, but they are considered the most prestigious. In Europe, such cottages are the most popular.

How to open a construction company


Structures made of timber have a low price and are easy to build. The main disadvantage is the difficulty in warming. Such a house is blown much more strongly than a log building. To reduce heat loss, you have to think over additional thermal insulation at home.

The average price of erecting a wooden cottage from laminated veneer lumber is from 25 thousand rubles (cubic meter), a house from a profiled bar will cost half the price - about 10-15 thousand rubles per "cube".

The most budgetary option is a house made of rounded logs. Its cost is from 6-8 thousand rubles per "cube".

The total costs for the purchase of all equipment, registration of a license, construction, purchase of tools - from 500 thousand rubles. Business profitability is about 40%.

Table # 1. Potential of house construction services in Russia

Why is the frame house construction business good?

Frame construction has always been considered one of the best options. First, these designs are very economical. It will take half the cost to build a house when compared with a standard brick building.

Secondly, frame houses are built much faster. It takes no more than 2-3 months to rebuild the building from the foundation to handover to the new owner. At the same time, you can save on people and technology.

Thirdly, such buildings are particularly durable, so even the worst weather conditions will not damage the reliable structure.

As for the rest of the actions, they are unchanged - search for land, paperwork and licenses, creating a plan, analyzing competitors, hiring personnel, advertising, and so on.

To organize such a business, you need to invest from 600 thousand rubles. The cost of one "cube" of such a house costs about 7-8 thousand rubles. During the year, you can manage to build up to 8-10 pieces.

The average income from one house is about 300-400 thousand rubles. The payback period is 2-3 months.

Table 2. Growth of market participants in the construction of houses in Russia

How profitable is a home construction business idea?

I have already mentioned that the construction of cottages (town houses) is one of the most profitable types of business. With the correct organization of construction work and the successful sale of the building, you can recoup your costs in 2-3 houses and start making a net profit.

The main thing is to understand yourself in the construction industry or to have good specialists at hand.

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