Nearly everyone has been affected by the housing and economic crisis. A fair percentage of Homeowners have lost the better part of their equity, disabling their leveraging ability for discretionary spending, and have had to tap into savings and dwindling investment accounts to make ends meet. The residential construction business sector has been in a state of constriction not seen for some 50 years, and an inverse-home equity market is saturated with foreclosed and discounted inventory, awaiting buyers who are all too fearful to act. Why would anyone in their right mind build a new home?
The savviest of financial investors transact at the bottom of a down market, capitalizing on fear driven constriction, providing for the greatest potential of profit over a calculated margin of time. Most analysts contend that the downward projection of the real estate market is at the bottom of its decent, or will be very soon. The saturated inventory of mid-priced to upper-priced product will be purchased eventually, akin to a giant used car lot with nothing but gas-sucking clunker SUVs’. Regardless of their number and inefficiency, somebody will buy them. Albeit at a drastic discount-they will be purchased. But the purchase of these clunker homes will return little to less than moderate profit on the investment.
There’s simply too many of them on the road and their already challenged life-cycle will be truncated even further. Short of long-term rental income or a quick-flip for a small profit and cash flow, why would somebody do this? The simple answer is: They align themselves to archaic real estate ROI formulas that are of a generation past, and most follow the herd to slaughter; such was the 2007-2008 housing bubble buying fest. “If they do it, then I can too.” Right.
Building New Now means taking advantage of some of the lowest land cost, material cost, labor rates and loan rates ever. Building New Now means realizing that while building new now is comparatively higher to that of buying a “saturated inventory” unit, in the immediate snap-shot, a smaller, modern, sustainable and energy efficient home will yield a higher return on investment as the cost difference is amortized in the way of debt load reduction (smaller land use, lower energy use, subsequent rebates, lower taxes, lower maintenance, lower resource use, etc.) Additionally, the appreciation rate of a new energy efficient home will intrinsically be higher when compared to that of a rusty old “saturated inventory” unit.
Add to the facts, a green and sustainable home is also a healthy home. Low VOC (volatile organic compound) content materials, supreme air quality, better circulation and light with reduced operational cost, improve the occupant’s health and lower emotional stress- adding to the quality of life for all occupants, therefore reducing dependency on medicine, health care and associated cost.
The housing and economic crisis has awakened some to the fact that we need to become efficient with space and shelter, downsize our accommodations and maximize our living dollar, welcome sustainable solutions to our lifestyle, and action new technologies. Enter the hybrid automobile, enter your home guides, the hybrid of home design and technology. Seldom has there been greater opportunity to build long-term equity. Building New Now makes good sense.