Home Building Hurdles and Construction loan Declines
The financial crisis is affecting everyone. People are losing their jobs and some have to foreclose their homes. As a result, there is a decline in home building making some doubt that now is now the right time to build a home. [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.
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.
What is even better is that you live in a dwelling according to your specifications. If you dont like it or you want to add something, you can make changes and no one will oppose your decision.
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.
What makes matter worse is that banks who happily loaned money to homeowners sold this to companies like Fannie Mae or to buyers of mortgage backed bonds. As a result, the value of most homes is now falling so you will have a hard time making a profit if you decide to sell your 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.
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.
What is even better is that you live in a dwelling according to your specifications. If you dont like it or you want to add something, you can make changes and no one will oppose your decision.
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.
What makes matter worse is that banks who happily loaned money to homeowners sold this to companies like Fannie Mae or to buyers of mortgage backed bonds. As a result, the value of most homes is now falling so you will have a hard time making a profit if you decide to sell your home.
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posted by Credit Counseling at
4:59 PM
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