Decline in Home Building and Construction Loans
Lets say you have the money and the resources to build a home. Within a few months, it is completed. Is it happily ever after? The answer is no because there will be a few other challenges ahead even where is no decline in home building.[I:0:T]
What this means is that the number of homes or apartments being built will be the fewest since the Second World War. The reason for this is simple, not that many people are willing to build a home and banks are a bit hesitant whether or not to approve a loan.
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.
Since its been months or even a few years that these homes were built, you have to expect that it is going to cost more now to construct something similar. The rooms which will be the most expensive to make will be the bathroom and kitchen. The number of windows and their size is another factor as well as the vaulted ceilings and high roof pitches.
Should there be any problems with the house, you dont call your landlord since there is none. You will have to find a specialist to figure out what is wrong in order to fix it.
Since the property of most homes has also gone down, many of the current homeowners cant even make a profit if they decide to sell it now in hopes of building a new one.
Believe it not, the cost per square foot is higher for a small home than a big one. Why? Because the cost of items is spread over and a two story home if that is what you want has a smaller roof and foundation. The same goes for plumbing and ventilation.
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.
Many people that it will take between two to three years for the market to stabilize so business will be back to normal by 2011. So again, if you have the money, there is a lot of houses that are now available in the market to buy and when these are sold, equilibrium is achieved and there will be a construction boom once again.
If you had this property for a long time, then chances are the neighborhood around you is already well developed. You dont have to haul a lot of dirt, do grading, clear trees or blast through large rocks if your property happens to be somewhat secluded.
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.
What this means is that the number of homes or apartments being built will be the fewest since the Second World War. The reason for this is simple, not that many people are willing to build a home and banks are a bit hesitant whether or not to approve a loan.
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.
Since its been months or even a few years that these homes were built, you have to expect that it is going to cost more now to construct something similar. The rooms which will be the most expensive to make will be the bathroom and kitchen. The number of windows and their size is another factor as well as the vaulted ceilings and high roof pitches.
Should there be any problems with the house, you dont call your landlord since there is none. You will have to find a specialist to figure out what is wrong in order to fix it.
Since the property of most homes has also gone down, many of the current homeowners cant even make a profit if they decide to sell it now in hopes of building a new one.
Believe it not, the cost per square foot is higher for a small home than a big one. Why? Because the cost of items is spread over and a two story home if that is what you want has a smaller roof and foundation. The same goes for plumbing and ventilation.
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.
Many people that it will take between two to three years for the market to stabilize so business will be back to normal by 2011. So again, if you have the money, there is a lot of houses that are now available in the market to buy and when these are sold, equilibrium is achieved and there will be a construction boom once again.
If you had this property for a long time, then chances are the neighborhood around you is already well developed. You dont have to haul a lot of dirt, do grading, clear trees or blast through large rocks if your property happens to be somewhat secluded.
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.
About the Author:
If your looking for a construction loan to build your new home and want new ideas on home Building, or just Building a new home download a free construction loan e-book on our website.
posted by Debt Consolidation Loan at
6:48 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home