The Financial Samurai Podcast What It's Like Building A $4+ Million New Home From Scratch
Apr 29, 2025
Discover the fascinating journey of building a $4+ million home in Los Angeles. The discussion dives into the construction loan process and the key financial considerations involved. Hear insights on upgrading a luxury property and the importance of effective communication with builders. Experience the challenges of moving into a new home, including road noise issues, and the role of builder warranty coverage. Gain practical tips for navigating home construction and learn valuable lessons for future high-end homebuyers.
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Third-Party Inspections Help
- Harry bought a new $3.85 million home from a builder with an interest-only construction loan at 4.625%.
- A third-party called Land Gorillas verified construction milestones, providing independent quality checks.
Property Tax During Construction
- Buyers must pay property taxes from purchase date, even during construction.
- Tax assessments can lag construction upgrades, temporarily lowering tax basis.
Keep Property Details Low Key
- Limit details disclosed on public sites like Zillow to reduce property tax reassessment risks.
- Contact listing sites to correct inaccurate sale prices and remove photos to protect privacy.