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 The best advice we can give you is | | | | outdated and has many environment problems.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