| These real questions on new home starts and | | | | $230 million. That is the steel in the building pays |
| interest rates on real estate are answered by a | | | | the company who made it, who then pays the |
| US Master Builder and myself after receiving | | | | wages of the workers, who then pays the grocer |
| them from readers of my e-book, | | | | who then pays his staff, who then pay their rent, |
| "Residential Development Made Easy."Question | | | | car payments and so on - it goes round and |
| 1.What is the your forecast for home starts in | | | | round.What does affect the new home industry is |
| the US for the next 12 months? 24 | | | | lower wages and our jobs going to foreign |
| months?Master Builder & Developer's Reply:This | | | | countries. If people can't afford a home, then |
| depends upon where you are. New home starts | | | | they don't buy and that directly effects the |
| are excellent for Florida, Texas, and Arizona.What | | | | housing industry.Question 3.What progressive |
| most people don't appreciate is that there is | | | | processes are being implemented for more |
| always growth in new homes. Cities grow in | | | | environmentally friendly and better insulated new |
| spurts, but there is also controlled growth. As one | | | | homes? All concrete framing? (no wood) Other |
| part of an area dies from old age it is revitalized | | | | unique materials and |
| and redeveloped.So remember national growth | | | | approaches?Master Builder & Developer's |
| statistics on new home starts are not much use | | | | Reply:As a Master Builder, we use the current |
| to you unless you have a national business. The | | | | technology in building material. Concrete is |
| best advice we can give you is to "read" market | | | | outdated and has many environment problems. |
| data - census data etc.Personally I have kept | | | | Our new homes are the most environmentally |
| average residential dollar sales figures on homes | | | | friendly homes that you'll ever have built.No wood |
| for my City since 1974. At first it might appear | | | | is used except for molding and cabinets.But the |
| to be a lot of work, but after you have your | | | | problem is convincing the buyer. We have access |
| base, say 20 years worth of data, you only have | | | | to material that replaces wood products, that are |
| to add one figure a year.My City's growth dollar | | | | made up of recycled material that is vastly |
| sales value shows a 150% increase every 8 | | | | superior and looks more real than wood.We have |
| years. It is valuable to know where you are in the | | | | access to luxurious carpet that is made from |
| cycle - so it is worth doing the figures.By that I | | | | recycled plastic soda bottles. We have access to |
| mean, if you sold a property in the seventh year | | | | recycled paint that has no out gassing. Recycled |
| of the cycle, you'd make about 90% profit on | | | | roofs that have a 20 year warranty. Our homes |
| your 'buy-price' but by waiting one more year it | | | | have an R-70+ rating. Meaning less energy |
| becomes 150%.Stats are important, so do the | | | | required for heating and cooling.There are the |
| homework. After all, all you got to do is get some | | | | 'traditionalists' and there are the 'innovative clients' |
| figures | | | | - all we can do is educate and then the clients will |
| from an office for FREE and put them on an | | | | benefit and so will the environment.Question |
| spreadsheet.Question 2.How do changes in | | | | 4.What changes are being implemented to |
| interest rates affect sales of first time new | | | | improve customer service to new home buyers? |
| home, middle class, and estate housing? Aside | | | | (My daughter is buying a Hovnanian home for a |
| from the obvious, any interesting statistics or | | | | fraction of my last home purchase, yet she |
| trends?Master Builder & Developer's Reply:I'll tell | | | | is getting a weekly status call from her new |
| you a secret. The answer is that it doesn't affect | | | | home sales representative!)Master Builder & |
| the new home part of the housing industry. If | | | | Developer's Reply:This depends upon your builder. |
| you watch the news when you hear about the | | | | In our case we provide our buyers, investors and |
| housing industry in a slump or slowing down -- | | | | developers with daily video updates. They log into |
| Greenspan in on the news within a few days | | | | their account on our site and the site supervisor |
| adjusting the interest rates to | | | | walks them through what was completed for |
| ensure continued growth.The building industry is | | | | that day and what is scheduled for the next |
| the engine of our economy. If a country has had | | | | day.Our clients have video documentation on their |
| an economic slump and the Government wants | | | | property. We also provide service after the sale. |
| to kick it off again, they start by 'flicking on' on | | | | If three years after the purchase, the neighbor |
| the new home building industry switch.It is the | | | | throws a ball through the window or |
| quickest to react; quickest to increase | | | | the cat destroys the carpet -- all the buyer has |
| employment figures which pays for groceries, | | | | to do is log on to their account.They tell us what |
| mortgages, school fees - you name it. Two | | | | needs to be replaced or repaired and in what |
| economists arguing will give you three opinions, | | | | room and we can do it almost immediately, |
| but they all agree on the 'economic multiplier | | | | because everything is in our database about the |
| effect.'That means that a $100 million project has | | | | home.Author & $1. |
| an economic effect in the community of about | | | | |