The economy is starting to show signs of repair and more new building starts on the horizon, yet we are still confronted daily with customers who are still uneasy about moving forward with their custom home project. Of course, each person has to evaluate their own financial situation before pressing forward, but here are four points that you should know before you decide to push your project off to the future:
With the downturn of the economy over the last 5 years, Americans saw opportunity in cheaper real estate and lower building costs; even 2 years ago this was still seen to be true. The reality now is that the costs of materials and labor are starting to go up. With an average life span of a building project being 3-5 years, this could mean inflated prices and limited services in the future. By being on the bottom of this upward curve to a better economy, you can still reap the best economic benefits for your project. If you can afford it now, now is the time to start!
Low Interest Rates
At some point, we are going to have to pay for the stimulus spending of the last couple years. We cannot continue spending without creating inflation in the future. However, for the time being, interest rates are still low. Although changes in mortgage rules require a larger down payment right now, once you qualify, you will be getting the best interest rate which makes for an overall greater long term investment. Once the recovery starts, inflation is bound to start influencing the homebuilding market. Whatever you are feeling about real estate— and many people are not feeling very good, real estate is still the best protection against inflation.
Quality Builders are Available
With new home construction still at some of its lowest recorded levels, there are fewer builders and subcontractors whose businesses survived the lows of the economic downturn. However, these tend to be some of the most talented builders in the industry. Right now the lack of projects available means you don’t have to wait as long to begin building your project and you are more likely to attract quality contractors. In the near future, these builders will become booked up and you will either need to wait even longer or use a less qualified general contractor.
Be Prepared, When the Time Comes
For Riverbend, the more business begins to pick up the busier our design department will get. It can take from 6 months to 3 years from the initial start of your design process until you move into your timber frame home. Just because you finish your design this summer doesn’t mean you have to build this fall. Take your time working with our architectural department, and then be ready to start building as soon as you see the opportunity.
So if you want to build your timber frame home in the next couple of years, it is a far smarter bet to start your timber home design now when the interest rates are low, building costs are less affected by inflation and the skilled labor force is available. This is a historic time with historic opportunity.
Whether you’re looking for more information or would simply like to learn more about us and our services, don’t hesitate to contact us. Please follow the link below to access our online form or call us at 888.486.2363 in the US or 888.999.4744 in Canada. We look forward to hearing from you.Order Riverbend Brochure Contact Us