Has home building declined in recent years? The answer to that question is yes. In fact, is has reached its lowest rate in 17 years. [I:0:T]
But what if there was no financial crisis? What if you can borrow money from the bank? What if you have the cash on hand? If there were no problems, then yes why not build your dream home. To help you along, this is what you have to do.
In some states, there was a decline of more than 20 percent for new housing permits. This means contracts dont have that many jobs and there is not that much money collected from real estate taxes and building permits which contribute to local revenue.
If you are employed and you are told that you have to relocate, it will be hard to move right away since it takes time to sell a house.
So what should people do now? Well a lot of experts advise consumers to tighten their belts and then wait till the smoke clears before they consider building a new home. If you have the money, you could buy a homes sine many are up for sale especially when a lot of them are foreclosed and now owned by the bank. If you dont have a lot of cash, make sure you save enough money to save it from being foreclosed.
But these things should not deter you from considering building your own home even during a time when home building is on the decline. Why? Because building a home is a one time investment unlike rent where you pay a fixed amount per month and this could up the following year.
For those who are renting, continue paying for it because it is cheaper to own until perhaps you have save enough to consider building your own home. In most places, annual rent is still less than 3% of the purchase price and mortgage rates are 6.5% which makes it cost more than double to try and borrow money to build a home.
Another thing that could reduce cost is the shape of the home. Houses that are shaped like a rectangle, square or dome shaped are more affordable to build since there are not that many angles or corners which increases the amount of labor and the materials that will be needed.
Since your house is new, it is more energy efficient compared to older homes thanks to new technology and you are compliant with new environmental regulations.
There is no doubt that the current financial crisis is the cause of the decline in home building. The good news is that things will change for the better in less than 5 years so in the mean time, those who are paying for a home should sit tight until the bailout and any other remedy the government is trying works. As for those who are renting, be patient because now is not the right time to consider building a home.
There are bargains to be found out there in the real estate marketplace but make sure you pick the best projects in the best areas.
You will also get tax cuts which will never happen if you are renting. You will be happy about this when it is time once again to pay your income tax for both federal and state since these are usually fully deductible.
The sad reality out of all of this is that this is not expected to stabilize any time soon. The value of most homes will continue to drop for 5 years or even more which bring us back to the conclusion that it is better to rent than to build a home.
But what if there was no financial crisis? What if you can borrow money from the bank? What if you have the cash on hand? If there were no problems, then yes why not build your dream home. To help you along, this is what you have to do.
In some states, there was a decline of more than 20 percent for new housing permits. This means contracts dont have that many jobs and there is not that much money collected from real estate taxes and building permits which contribute to local revenue.
If you are employed and you are told that you have to relocate, it will be hard to move right away since it takes time to sell a house.
So what should people do now? Well a lot of experts advise consumers to tighten their belts and then wait till the smoke clears before they consider building a new home. If you have the money, you could buy a homes sine many are up for sale especially when a lot of them are foreclosed and now owned by the bank. If you dont have a lot of cash, make sure you save enough money to save it from being foreclosed.
But these things should not deter you from considering building your own home even during a time when home building is on the decline. Why? Because building a home is a one time investment unlike rent where you pay a fixed amount per month and this could up the following year.
For those who are renting, continue paying for it because it is cheaper to own until perhaps you have save enough to consider building your own home. In most places, annual rent is still less than 3% of the purchase price and mortgage rates are 6.5% which makes it cost more than double to try and borrow money to build a home.
Another thing that could reduce cost is the shape of the home. Houses that are shaped like a rectangle, square or dome shaped are more affordable to build since there are not that many angles or corners which increases the amount of labor and the materials that will be needed.
Since your house is new, it is more energy efficient compared to older homes thanks to new technology and you are compliant with new environmental regulations.
There is no doubt that the current financial crisis is the cause of the decline in home building. The good news is that things will change for the better in less than 5 years so in the mean time, those who are paying for a home should sit tight until the bailout and any other remedy the government is trying works. As for those who are renting, be patient because now is not the right time to consider building a home.
There are bargains to be found out there in the real estate marketplace but make sure you pick the best projects in the best areas.
You will also get tax cuts which will never happen if you are renting. You will be happy about this when it is time once again to pay your income tax for both federal and state since these are usually fully deductible.
The sad reality out of all of this is that this is not expected to stabilize any time soon. The value of most homes will continue to drop for 5 years or even more which bring us back to the conclusion that it is better to rent than to build a home.
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