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 Concrete is outdated and has many |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