Articles About Finance And Refinancing

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

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Low Interest Rate Used Car Loan  Car at Simply No Cost
Introduction

Auto Loans Low Interest Bad Credit: Car Loan without Credit Problem
Owning a car is apart from necessity enhances your status in the society as well. Driven by the urge due to either of the two reasons, you may wish to own a swanky car but are restrained by financial constraints. Going for loans is a good option but if you are a bad credit holder than a fear psychosis of exorbitant rates or being discriminated may check your advances for the quest of normal loans. This myth is now unshackling as bad creditors like you can approach for bad credit auto loans available at low interest rate. These loans are especially fabricated for people having CCJ?s, arrears, any default payment or due payments. Some facts and figure The lender is more interested in your current repaying capacity rather than seeing the ...

Secured Loans: High Amount at Low Interest Rates
People avail secured loans for various reasons. Secured loans are loans that need collateral to be pledged. The collateral can be your house, property or any high value possession. There are various advantages of a secured loan which are discussed below:

Student Loan Financial Group Announces Interest Rates on Variable-rate Loans Increasing July 1st
Student can take advantage of the lower rate if they apply before June 30th.

Low Rate Home Equity Loans - Refinancing For A Shorter Term And Better Rate
Looking for a better rate is a common reason people choose to refinance their home equity loan. But did you know that shortening your loan term can save you more money than reducing rates? Combine the two and you will save yourself thousands in interest costs and trim years off your payment schedule.

Credit Heaven Announces their Rate Busters Program to Slash Interest Rates for High Interest Loans and Credit Cards
The Rate Busters program is designed to achieve affordable and sustainable payments for borrowers by negotiating lower interest rates or periods of no interest on existing credit card, auto loans and mortgages. This in turn will maximize consumers' ability to reduce monthly payments, reduce debt, maintain or improve consumers' credit as well as reduce creditor's bad debt.

Mortgage Loans, Construction Loans, Refinancing Mortgage Rate
TheLoansStore.com was created with the interests of the consumer in mind. If you have ever wondered if owning your own home or refinancing your current home would be possible, dont wonder anymore. From new Construction Loans to Mortgages Loans, Bad Credit Home Loans and Refinancing Mortgage Rate. Whether you have great credit, marginal or bad credit, theLoansStore.com can help. We know one size never fits all borrowers.

Refinancing Mortgage: Low Payment And Low Interest Rates
Those seeking a financial alternatives are often caught thinking that low payment refer to low interest rates. They should be aware that low interest rates vastly differ from low payment. With this in mind, they can veer away from dubious loan agents who will rush them to a new mortgage with high interest rates and add-on fees.

Get Personal Loan, Home Loan, Car Loan after Bankruptcy at Low Rate of Interest
Do you feel your chances of getting approved for a loan after filing bankruptcy is bleak. Wait for a while, bankruptcy loan can help you even after filing for bankruptcy, getting approved for funds after a bankruptcy is not that daunting as you think.

Types of Mortgage Loans with the Lowest Interest Rate
When you're shopping and comparing for a mortgage loan there can be a lot of discrepancies between what lenders offer. Some may offer lower rates with strings attached, others can offer the same terms but with a much higher rate. Shopping around, comparing and negotiating are key skills in getting the type of mortgage loan with the lowest interest rate.

Low Interest Rate Auto Loan - Increase Chances Of Getting Approved For A Low Rate
Getting approved for an auto loan is easy. However, obtaining a low rate auto loan may be a bit more challenging. When financing any sort of merchandise, the interest rate received makes a huge difference.

Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate
Interest rates are at an all time low, making now the perfect time to purchase a new home or refinance your existing mortgage. The interest rate you receive will depend largely on your credit rating, monthly debt, and your income.

A Low Interest Debt Consolidation Loan When Your Credit Card Interest Is Too High
You just didn't realize you were digging a hole for yourself. You were paying bills and buying ordinary things. Can you even remember when you did anything truly luxurious? Yet, your credit card spending still got away from you and if someone asked you, you doubt you could explain it. In fact, it would be hard to explain anything with the current level of fog in your brain; you wonder, should you ask a doctor for anti-depressants? Somehow, everything is harder; it feels as of you are walking through invisible treacle and there is no-one to rescue you. There is an answer and you don't need a rescuer. What you do need is a low interest debt consolidation loan.

Importance Of Interest Rate On Refinance Loans
The interest rate is an issue that should never be bypassed when it comes to refinance home loans. Its importance is crucial as it will determine whether you benefit from refinancing or not. Though other loan terms like loan length, loan amount, and other less important clauses should also be considered, the interest rate should be your main concern.