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 Concrete is outdated and has many |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