This is always the question: "How much will this cost?"

 

Of course, it depends on what you want to do with your property. Is it a getaway place or a full-time home? What size home do you want? How big is your lot?

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The questions are endless and the costs varying according to your needs. But we can tell you one thing: it is a lot less expensive than you think And, your investment each step of the way increase in value substantially.

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Let me give you our own example.

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Our Story Can Be Your Story

By Robert Chew, founder RZL Homes

 

We are builders, real estate developers, renovation specialists on the Mainland. We live in Los Angeles and Colorado, and now on the Big Island. We wanted to make a change and create a family retreat for future generations. I am an artist too. I wanted a studio, one that was multipurpose. A kind of studio/garage/office/apartment/storage facility.

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In 2022, we bought our 3-acre lot in Fern Forest, about 8 miles from Volcano and close to Mountain View. The property cost us $35,000. It was raw jungle land. No driveway. No building site. 

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The first thing we did was get it professionally surveyed. This cost about $2500. But you need a professional survey if you want a permitted property. 

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We followed the surveyors to the four corners of our property. It was crazy. We needed machetes to hack our way behind the two men planting stakes.

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Next, we found a great excavator, Chris, who in no time excavated a beautiful winding road/driveway into the center of the property, some 500 feet. He then pushed on another 500 feet to the back of the property. We created a center building site and then a second open space at the back of the property.  This cost us about $10,000, but it was well worth it. Few people create a driveway the full length of the their property. It opens up all sorts of possibilities, plus we wanted the privacy.

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While all this was going on we started searching for interesting home designs, from contemporary wood and glass structures (to let the beautiful jungle be part of every view), to small Hawaiian-style cottages, to even experimental cargo container living. 

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Since we knew this would take some time to figure out we moved forward with an entry gate and debris removal, from the excavation process. This cost another $2500. As this happening we began to work with one of the Hilo-based building materials company, Argus Building. They include the well-known trio of bigger home building material companies, which consists of  Argus, HPM, and Honsador. All are good, but we felt the designs offered were lacking. 

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We settled on a small one-bedroom cottage design by Argus. It was a good starter guest house package and the shell materials cost was only about $27,000.  We put down $3700 to get started on the final design and permitting process. It would take eight months for approvals, which is fast for the Big Island. With this design, we knew we could make up for its basic-ness with great Hawaiian art, sculptures, and locally made furnishings. 

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With each step of the process we knew our investment was growing in value. We had invested a little over $50,000, but based on valuations our property at this point was easily worth $75,000.

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With that in play, we still had the issues of the studio/garage and the main residential home. We also had to consider electric, septic, and water catchment systems. These can only come once the permit has been issued by the Building Department. So, we had to wait.

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One thing we could move forward on was the studio/garage. This is when we looked into containers. We began communicating with Allison, of Allison's Containers. She pretty much owns the container market in Hawaii. We had a plan for dropping a container on the center building lot and then building a studio/garage around it, creating a 30 ft. by 30 ft. interior space. In addition, there was nearly 320 sq. ft. of secure container interior space. 

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Containers fluctuate in price based on the shipping and trade markets. A few years ago you could pick up a good one for $4,000. Ours, with delivery, cost $10,000.

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Delivery was an adventure! Our driveway/road is winding and the 40 ft. container almost did not make it down the twist and turns of the driveway. We have videos of this process and it was touch and go. But the drivers made it and now we have a beautiful container dropped our our building pad. We are now into the project for about $63,000.

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Next, we began our contractor search. And we found the best, Banyan, and his team of licensed and unlicensed pros. They can do anything, and all to code or better. So, as we waited for approvals, and we poured the concrete pad for the studio/garage. This cost us about $13,000.

 

But now we are ready to build the studio/garage shell, buy the windows, and install the roof system. Since it is a multi-function building the light was important. We created a window plan that was both low cost and brought in sufficient light to work and live in, while the rest of the project progressed.

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We had now spent about $75,000, but our investment was worth an estimated $100,000, based on improvements to the land. 

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As we waited for Building Department approvals (another 6 months) we began securing the property with fencing in front and a better, wider entrance gate, so large trucks could get in. This one was now 20ft. wide with two cattle gates. We began the studio/garage build out and creating designs for the container. The container would be cut up into three sections: Office/Sleeping area; bathroom/utility room; and secure storage. 

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Since we were still traveling back and forth between the Big Island and the Mainland, we knew security was key. Leaving any home uninhabited is not a good idea. So, we began figuring out plans for security while we were away. The triple-locked container was the answer. (Security is another story. We have built this service into our business). We stored windows, tools, and other supplies in the container while work progressed.

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Of course, while all this was going on we needed to stay in AirBnB's, inns in Volcano, and in Hilo. This can get expensive. We even camped out on the property, but without water or electricity this gets old fast. But many enjoy the roughing-it experience. With each trip, we learned where to stay, and where to buy food, at the best prices.

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One the advantages to the Mountain View/Fern Forest area is that at 2,000 ft in elevation the temperature year around is perfect. No need for heat or AC, unless you want it. In Hilo, at sea level it is muggy and hot, while in Volcano at 4,000 ft. is cool and sometimes cold. We knew we would not need to spend on AC or heating, at least not initially.

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The Studio/Garage build out cost about $25,000 for the shell. Cutting holes for doors and windows in the container and installing them was another $4,000. But we now had an enclosed shelter, but no electric or water. We were still waiting for permit approvals. This is where our off-grid learning came to life. So, we were into it for about $110,000 at this point. Solar, bottled water, compost toilets add about $5000.

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The details can be daunting if you are not used to it: Windows, doors, electrical plans, color, foundation issues (posts or slab), water systems, roofing, orientation of buildings, putting in electric poles, landscaping, hiring the right people, and then there is the security issue.

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We knew the costs of the infrastructure systems and we factored that in: electric ($10,000); water catchment ($8,000), septic ($10,000). I won't go into details on each of these systems, but let's just say we worked with the best companies in the area. Each system has its own complications. Figure another $30,000 for utility infrastructure. 

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The guest cottage is now the next big cost. That will be, as mentioned earlier, $27,000 for materials, then another $15,000 for the contractors to build it. Then you have to add interior work like drywall, electric, plumbing, cabinets, bathrooms, and so forth. Depending on your fixtures, that's roughly another $20,000. This brings the cottage building cost to about $62,000.

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We are now at about $205,000. But we need to fit out the Studio/Garage with electric and plumbing. This is another $8,000. This takes us to about $215,000, without landscaping. You can take the landscaping slow, but figure another $10,000 just to make it all come to life.

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You might ask, why do you need landscaping in a jungle? Well, it's not as pretty as you imagine until you put in grassy areas, eye catching planting beds, colorful flowers, and of course, palm trees. This kind of tropical greenery is the finishing touch that makes your property welcoming and the home of your dreams. 

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The cost, you ask? Well, as detailed above, our cost was about $225,000 for our Hawaiian guest cottage and art studio/garage/office-living space. The square footage for the studio/garage building is about 1,200 sq. ft. and the guest cottage is about 700 sq. ft.  Each has wide and large outdoor lanais, or patios too. This comes out to under $112 sq. ft. Not bad. We are still in development on the main residence.

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According to appraisals and basic listing estimates for the area, our property is now worth about $450,000, which is considered the low-end for permitted residences.  At $250 a square foot, it takes the value closer to $500,000.  With all the work done on infrastructure, the main house will now be much more cost efficient to build. This will be built next to the guest cottage or perhaps on our second building site we created at the back of the property. That will be about 2,000 sq. ft. and at likely will cost about $200,000 to build. This will bring our total investment close to $450,000, which will yield a value of around $750,000, we estimate.

 

But who knows? Our investment could be worth a lot more, or less. It doesn't matter, because we are not selling. It's just good to know. But where in Hawaii, in paradise, can you find a home customized to you at under $500,000? For under $125 a sq. ft.?  You can't. Look at listings on Zillow or Realtor.com. Plus, you likely already own land. You have taken the first step. You can take it slow or fast. You can also do all this yourself, too. But why? We have just done it and we do it for you, since many landowners here live on the mainland. We can even find financing for you. 

 

Along the way in our journey we found great contractors and suppliers that we want to share with you, if it is your dream to build a home on your property, or if you want us to find you a property. We have the experience to handle each phase the project.  And we have a security system/service to watch over our projects in the area. 

 

We look forward to showing how it all worked for us, and how we can make it work for you.

Give us a call or drop us an email. Let's talk about your dream. 

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Just go to the Contact page and let us know how we can hep.

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