<prompt> Human: I live in a state with pretty low vacancy rates and rent that has been going up 10 a year or more. I happen to be lucky and have been renting the same townhouse for several years now with minimal rent increases such that my neighbors in identical domiciles are paying 30 more rent than I am, which means if I theoretically wanted to just move into the townhouse next door my rent would go up 30 overnight, so moving into a rental house would be an even bigger increase in housing costs.Ive always thought if and when I bought a house it would be through a foreclosure or property tax lien to try to get a great deal, but the way things are right now foreclosures arent as viable an option as they were during the housing crash and a property tax lien is a multi-year investment that has the chance of merely resulting in getting a 10 ROI instead of property with a home on it, and even then theres the additional risk that the previous occupant guts the house or makes it unlivable when they lose their home and property over not paying taxes on it.Looking at typical home prices in my area, it almost seems like it makes more sense to buy a parcel of land for a reasonable price 50k-100k and then build a modest house on it 100k-200k than it does to buy any property with an existing home on it.What say you PF?  <response>: I forgot how reddit responses vary. Man alive.Builders pay for the construction of a house just like you would a 2x4 costs what it costs--sure, builders can get a quantity discount, but so can you if you get a framing package, but wind up charging more for overhead office fees, estimating, marketing, supervision and profit. The amount varies company to company, but overhead ranges from 15-25, while profit is closer to 5-10.Now, is it likely that the overhead is a bit high and theyre actually making a little extra profit? Sure, but the price of the house doesnt reflect that. And if something unexpected comes up? Its going to eat into profits. If you, an individual, build a house for 200K, a builder would put the same house on the market for about 275K theyd HAVE to or theyd lose money. Theres a lot more to it, but i have a nosebleed and dont feel like pecking out any more. SOURCE: Im a construction estimator. 