Sunday, October 18th, 2009 | Uncategorized
O sibili, si ergo, Fortibuses in ero. Nobili demis trux. Sewatis Enim? Cowsendux.
Can you make out what this Latin verse is saying? Or, maybe it’s not Latin but some other language. Actually, it’s East Tennessee and the translation is as follows: Oh, see Billy, see her go, forty buses in a row. No Billy, them is trucks; so what’s in them? Cows and ducks.
Things are not always as they seem on the surface, which makes it especially important to check everything out before you make a decision. It seems as though this is a very bad time to build a new home because of the present economic environment. But that may not necessarily be so. In fact, it could be a good time to invest in a home newly constructed. The one caveat to the above statement is that the home you build is built with energy efficiency as your primary goal.
If you think home ownership is a challenge now, just wait awhile and you will be hit with the reality of the new energy policies being put into place as we speak. The energy costs of your existing home will greatly increase in the future because of these policies, making your home less and less desirable on the resale market as well as more costly for you to maintain.
Building an energy efficient home is reason number one for making this a good time to build.
Reason number two for building now is that material costs and labor costs have generally fallen since the sharp decline in homebuilding. I’ve always heard it said to, “Buy low and sell high.” Actually, that is very good advice. Too often we buy when things are at their peak and get stuck with overpriced items.
I can remember in the 70′s when the Hunt brothers cornered the market on silver and ran the price up to over $40 an ounce. My young sons and I decided we would get in on the action and invest in some silver to reap the rewards of a rising market. The problem was, just about that time, the government stepped in and the price of silver nosedived leaving us with a huge loss on our investment. Thankfully, we had just bought a few silver dimes so we were not out very much money. We just has some very expensive dimes on our hands. So, reason number two is, prices are the lowest they have been in years.
Reason number three for building a new home now is so that you will be able to afford your home in the future because of the high future energy costs. Oh, I guess that was reason number one. Well, if you combine reason number one with reason number two, that would result in reason number three. Since costs are lower because of reduced material and labor costs, and since it costs more to build a really energy efficient home, the net result is that you should be able to build a highly efficient home at about the same cost as a commonly constructed home two years ago.
The fourth reason for building now is, if you think it is hard to sell a home now, just wait until those high energy costs take effect. The result will be that fewer and fewer people will be able to qualify for a loan to buy your home because mortgage companies consider a buyer’s income to be sufficient to cover the cost of the home plus the cost of utilities. So, it will take a higher income level for buyers to qualify for a mortgage for your home which automatically reduces the number of prospects.
This all sounds very depressing, but the bright side is that you can be one of the first to get your “ducks in a row” and be ahead of the curve.
Precision Builders is experienced in the area of energy efficient homes and we can help you make decisions regarding the best construction for your new home. We will do our best to advise you toward making a wise investment in your future.
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