| |
| |
|
Nationalrealtyresource.com
|
| Home | Find a topic | Links | Guest Book |
| Welcome |
|
|
|
How Does Interest Rates Affect New Home Sales and Wheres The Best Place To Build?
These real questions on new home starts and interest rates on real estate are answered by a US Master Builder and myself after receiving them from readers of my e-book, "Residential Development Made Easy." Question 1. What is the your forecast for home starts in the US for the next 12 months? 24 months? Master Builder & Developer's Reply: This depends upon where you are. New home starts are excellent for Florida, Texas, and Arizona. What most people don't appreciate is that there is always growth in new homes. Cities grow in spurts, but there is also controlled growth. As one part of an area dies from old age it is revitalized and redeveloped. So remember national growth statistics on new home starts are not much use to you unless you have a national business. The best advice we can give you is to "read" market data - census data etc. Personally I have kept average residential dollar sales figures on homes for my City since 1974. At first it might appear to be a lot of work, but after you have your base, say 20 years worth of data, you only have to add one figure a year. My City's growth dollar sales value shows a 150% increase every 8 years. It is valuable to know where you are in the cycle - so it is worth doing the figures. By that I mean, if you sold a property in the seventh year of the cycle, you'd make about 90% profit on your 'buy-price' but by waiting one more year it becomes 150%. Stats are important, so do the homework. After all, all you got to do is get some figures from an office for FREE and put them on an spreadsheet. Question 2. How do changes in interest rates affect sales of first time new home, middle class, and estate housing? Aside from the obvious, any interesting statistics or trends? Master Builder & Developer's Reply: I'll tell you a secret. The answer is that it doesn't affect the new home part of the housing industry. If you watch the news when you hear about the housing industry in a slump or slowing down -- Greenspan in on the news within a few days adjusting the interest rates to ensure continued growth. The building industry is the engine of our economy. If a country has had an economic slump and the Government wants to kick it off again, they start by 'flicking on' on the new home building industry switch. It is the quickest to react; quickest to increase employment figures which pays for groceries, mortgages, school fees - you name it. Two economists arguing will give you three opinions, but they all agree on the 'economic multiplier effect.' That means that a $100 million project has an economic effect in the community of about $230 million. That is the steel in the building pays the company who made it, who then pays the wages of the workers, who then pays the grocer who then pays his staff, who then pay their rent, car payments and so on - it goes round and round. What does affect the new home industry is lower wages and our jobs going to foreign countries. If people can't afford a home, then they don't buy and that directly effects the housing industry. Question 3. What progressive processes are being implemented for more environmentally friendly and better insulated new homes? All concrete framing? (no wood) Other unique materials and approaches? Master Builder & Developer's Reply: As a Master Builder, we use the current technology in building material. Concrete is outdated and has many environment problems. Our new homes are the most environmentally friendly homes that you'll ever have built. No wood is used except for molding and cabinets. But the problem is convincing the buyer. We have access to material that replaces wood products, that are made up of recycled material that is vastly superior and looks more real than wood. We have access to luxurious carpet that is made from recycled plastic soda bottles. We have access to recycled paint that has no out gassing. Recycled roofs that have a 20 year warranty. Our homes have an R-70+ rating. Meaning less energy required for heating and cooling. There are the 'traditionalists' and there are the 'innovative clients' - all we can do is educate and then the clients will benefit and so will the environment. Question 4. What changes are being implemented to improve customer service to new home buyers? (My daughter is buying a Hovnanian home for a fraction of my last home purchase, yet she is getting a weekly status call from her new home sales representative!) Master Builder & Developer's Reply: This depends upon your builder. In our case we provide our buyers, investors and developers with daily video updates. They log into their account on our site and the site supervisor walks them through what was completed for that day and what is scheduled for the next day. Our clients have video documentation on their property. We also provide service after the sale. If three years after the purchase, the neighbor throws a ball through the window or the cat destroys the carpet -- all the buyer has to do is log on to their account. They tell us what needs to be replaced or repaired and in what room and we can do it almost immediately, because everything is in our database about the home. Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries Of His Independent Web Site, http://www.realestatedevelopmentcoach.com/ez
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
How To Buy Real Estate - Yes, YOU CAN! If you want to buy a house but don't think you can for any of the following reasons, this article is intended to give you correct information so that you can make smarter choices and open yourself up to a world of wealth, possibilities and realistic expectations.The truth is you are being unrealistic when you believe the following reasons to be true:I can't buy property now because? I don't have 20% for a down payment, let alone 5%, let alone even 1%. Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own! In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead. For Sale By Owner: The Inside Scoop On Selling Your Own Home If you're thinking about selling your home perhaps the 'for sale by owner' signs posted on neighborhood lawns have intrigued you. When you browse the newspaper listings you see ad after ad boasting 'for sale by owner' as an added incentive for buyers and you envy the owners that are confident enough to try it. Why is Now the Time to Buy in Turkey? Turkey is a paradise of sun, sea, mountains, and lakes that offers the vacationer a complete change from the stress and routine of everyday life. From April to October, most places in Turkey have an ideal climate that is perfect for relaxing on sandy beaches or enjoying the tranquility of mountains and lakes. Do You Know What Design/Construct (or Design/Build ) Means? I Think You Should! These real questions on 'How To' build are answered by a US Master Builder and myself from the development viewpoint, after I received them from readers of my e-book, "Residential Development Made Easy."Question 1. Selling Your Home: The Power of a Great Sales Flyer Even though its importance is often overlooked, a great sales flyer is one of the most effective tools for selling your house. Whether your home is listed with an agent or not, make sure that you have a dazzling flyer. Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor! I have been a mortgage lender for many years and have seen a few transactions go sour. When problems arise after a contract is signed, it can be stressful for everyone involved. How to Choose Your Real Estate Lender Because you need quick action when applying for a real estate purchase loan, find a lender you can access easily. A lender's quick response signifies good service to follow. How to Become a Successful Real Estate Developer Real estate investment and development has never been a more popular pastime or career changing challenge; if you would like to learn seven secrets for consistently successful real estate investing through development or you would like to know how you can continue to profit from property even if the market takes a downward turn just read on?1) Do Your Location Homework - did you know that through successful and sustained location research professional property investors actually continue to profit during a market down turn? It's true - whatever the market conditions you can apply their location research approach to your real estate investments and also make consistent profits from property.Take the necessary time to learn all about a town or city you're considering for your next property development purchase and discover where the up and coming areas of that town are likely to be. Residential Property Abroad It is increasingly common for individuals to own more than one property and in many cases the first investment after the family residence is in a holiday home. Whether you are buying a place in the sun, a country retreat or a city centre apartment, if it is in a foreign country you will be exposed to an unfamiliar legal system and to taxes in the country concerned. Do You Want To Sell Your Rehabs Fast? That's an obvious question - we all do! So what is the trick? So much time and money is spent on systems updates, roofs, and structural issues, that many times there's nothing left for what really makes the sale: what your potential buyers see. And more importantly, what they fall in love with. Afford A Dream Home In Belize Shopping for property in Belize is not as simple an undertaking as you might initially expect!Firstly, real estate agents as we know them are non existent! Real estate brokers that do exist are likely to be unlicensed, unregulated and certainly not trained or insured.Secondly, the majority (and I mean the majority) of property for sale is not advertised!But with property prices remaining affordable, the quality of property available attractive, the climate beautiful, the people welcoming, the quality of life incredible and the opportunities in Belize plentiful, more and more people need to know HOW they can go about procuring themselves their dream home in Belize. Buying Foreclosures - Knowing Why Helps You Buy One big potential deal-killer in buying foreclosures is the homeowner. If the homeowner does not trust you, buying their home (even at a foreclosure auction) can become a greater challenge. Property Investing Secrets 7 Property Investing Secrets:How Buying Real Estate Is Like Planning a Trip to the Greek IslandsOne you start property investing, one important tip is to press the flesh with the real estate agents in the areas where you plan to buy. Because property investing is a bit like buying a holiday package, you must separate yourself from the rest of the investors by giving the real estate agents the information they are looking for in your first face to face meeting. Real Estate Investment - One Simple Formula I saw the ads in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. Do I Need A Real Estate Survey? Getting a survey before you close on any real estate is very important.Some people actually buy real estate without having a survey done. How to Prequalify a Buyer When You Sell Your Home By Owner One questions many "for sale by owner" sellers ask is "how can I determine if a potential buyer can afford to buy my house?" In the real estate industry this is referred to as "pre-qualifying" a buyer. You might think this is a complex process but in reality it is actually quite simple and only involves a little math. Real Estate: Choose a Realtor You Can Trust Today's volatile real estate market involves complex laws and fluctuating financial conditions. Maybe you've outgrown your first home; maybe you're in the process of turning over your fourth. FSBO: For Sale By Owners Chapter IV [part 1] Like a monarch, Red Haring reigned in the deep leather seat of his KenWorth cab-with its king-size sleeper. The 400 horsepower Caterpillar diesel engine droned apathetically as Red downshifted for the parking lot to his favorite Boise, Idaho roadside diner. Purchase Your First Home with Confidence If you are making the transition from renter to homeowner, you're not alone. In 2004, 40 percent of homebuyers were purchasing for the first time, according to "The 2004 National Association of REALTORS® Profile of Home Buyers and Sellers.
|
| |
| |
|
Home | Guest Book |Site Map | Recommended Resources | Search Powered By: TJTMEDIA |
| © 2006 |
