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The Vision. A Fenced private estate of 1 to 3 acres in the bay-area 5 homes placed in it, as we wish. Where all our kids live, play and grow together Our own club-house, pool, park, etc. Instead of looking for purchasing a home for $800,000 and
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The Vision • A Fenced private estate of 1 to 3 acres in the bay-area • 5 homes placed in it, as we wish. • Where all our kids live, play and grow together • Our own club-house, pool, park, etc.
Instead of looking for purchasing a home for $800,000 and living amidst people we neither know nor really care about; Can we build our own community (lets say, The Village)?
The Facts – how much it costs? • A piece of land of at-least 1 acre (43,560 sq. Ft). A quick browsing reveals • 3 Acre land on Los Altos foothills costs $1.2 million. • 1.5 Acre land in Portola valley for a million • If we go around Alum rock, we can find an acre for $400,000 • Example: 3.21 acres - Eastbrook-Ave-Los-Altos-Hills-CA-94022 • How much does it cost to build a home? • Around $100 per sq. feet – depending on the timber we select. • I hope a 2500 – 3000 sq. ft. home is handful . • With all the upgrades, fancy things – it costs $300,000 per home to build. • So a Total of 2.7 million (1.2 for land + 1.5 million for 5 custom homes) – that is $540,000 per family. • Do you thing $540,000 is worth a custom built home on a private estate and all the friends living together? • If we choose to set-up our community in a different place like Alum rock, Mission Peak, the land cost much lesser.
Complications • Obviously, there are complications involved. Starting from finding the land, govt. approval, Legal documentations, Mortgage, Finding a builder, settling on a home design, extra-things the builder bringing up during construction, like a custom tile-work, weather-proof roof, etc… etc. • Lets try dealing with these one by one; • Finding the land – with internet (example zillow.com) it should be quite easier to finding the land, since most of live around, we can even go look at them on any given weekend. • Govt. Approval – On a High-level, there are two major variables involved in buying a land. • MDA(Max Development Area) - includes pavements, roads, pool, tennis courts, club house, etc. • MFA (Max Floor Area) -> house wall-to-wall including car ports, garages, etc. • The 3.21 acre land referenced in previous slide already has MDA 33,395 sq. ft. and MFA 15,313 sq. ft. (easily accommodates 5 homes, each 3000 sq. ft.) approved. So the seller already establishes these details. • - Contd.
Complications • Legal Consultant – The Legal consultancy and documentation is free for the Microsoft employees, so don’t worry about it. • Mortgage – We all pay our bills right, and our credit-scores should be above 750. There shouldn’t be any problem in getting the best rates. Its all in the personal commitment, now. • The whole presentation applies for only those who have no second thoughts about settling in the bay area. If you are still , skeptical on settling here or moving back to India in near future. Please take a rain-check. • Finding a Builder – This is a major task. I hope we can use some reference from our civil engineer friend Krishnan. • Home plan – in the forth-coming slides. Courtesy - http://www.homeplans.com/ • ETC – Read through some guidance on joint mortgages, buying homes together, etc. guide-to-buying-property-with-friends • Once we have decided the land and home plans, we can fix some rigid boundaries and set the ownership of a particular piece of land and home tied to the corresponding family and we can co-won the remaining pieces of land and common areas.
Pros – What do we get back for going through all these hassles? • It takes a village to raise a kid. Obviously all of us miss our own villages and our kids are growing in solitude. so it’s a good chance to create our own village. • Togetherness : • All our top priorities, our kids, always have friends around, play together, learn together, fighting with each other, but are forced to patch-up and their friendship strengthens even more. • All of us get to choose 5 different food every-day! • Play tennis, poker, swim – all together. • Festivals would look like real festivals. • Our parents would have company when they visit us. • No need for hunting day-cares for every single errand we run. • Screen movies in our backyard. • Suddenly, there is a profound sense of security. • Cost : I would be ready to pay a little more to live along with my friends. But here, it actually costs less. The estimate is around $500,000. • -Contd.
Pros – What do we get back for going through all these hassles? Home-ownership : I hope all of us are thinking about owning a home, but really reluctant to spend a million dollars on it or not ready to settle for a mediocre home, even that costs $600,000. Return-on-investment: Obviously, some of our so-cal friends would be moving up north, and they’ll be in our state in near future and would be glad to be part of our village. We can either build a set of condominiums and sell it to them or just sell the land and let them build their home. Either-ways, we get the rebate. Choosing our neighbors: We don’t have to put up with the strangers, no more keep our music volume low and we can cook anything we like. I hope we won’t be calling cops on each other! Sharing: Suddenly, there are more cars at our disposal. We don’t need to take a day off for a pediatrician visit. There is also Car-pools. The Legend:Might sound trivial, Even after we die, we live as the founders of this village.
Cons – Disadvantages? Privacy : Well, being to-gether, we tend to get a little nosy at time, but, it won’t be as bad as it is in India. We can constantly work on balancing the privacy and togetherness. Mow the Lawn: We’ll have to maintain the lawn grass or even a forest (if we buy a 3-6 acres of land (130,000 sq.ft). At least we’ll have each-other to help. Lot of Drinking: There is going to be too many reasons to celebrate and there will be a lot of drinking going on. I don’t have a solution for it. Mortgage & Rent: Once we obtain the mortgage, for a good 3-6 month period, we would have to pay both mortgage and rent. Got to figure a way to work around it. Competitive Env: It is going to be a very competitive environment for the kids.
Home Plans – 1 (6-plex) • This is a simple model with 6 identical townhome • Pros: • 1700 sq.ft each. • Costs much less to build – around 700,000 total. • i.e., $115,000 per family + land. • Cons: • Townhome like. Just two bedrooms.
Home Plans – 2 (Duplex) • Duplex – two family can share the cost – costs almost the same as building a single home. • It costs around $200,000 per family.
Home Plans – There are plenty of amzing home plans • http://www.homeplans.com/plan-detail/HOMEPW02349/modern-beauty • http://www.homeplans.com/plan-detail/HOMEPW75587/country-home • http://www.homeplans.com/plan-detail/HOMEPW10803/beautiful-windows • http://www.homeplans.com/plan-detail/HOMEPW03117/flexible-luxury • http://www.homeplans.com/plan-detail/HOMEPW75321/huge-and-unique-master-suite <<< Rest in Person >>>
