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Top 6 Reasons to Build, Remodel, or Improve Your Home Now |
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by South Central Wisconsin Builders Association
www.scwbaonline.com - 608.752.8075
DOTR Biz Partner
It’s no secret. The word is out from real estate professionals, economists, and the media – we’re in a buyer’s market today. Don’t stand on the sidelines. Take advantage of everything this market has to offer:
A Solid Investment
Thanks to the concept of “leveraging,” purchasing a home is by far the best long-term investment. For example, say you use a $10,000 down payment to purchase a $300,000 home, and the house appreciates five percent during the first year. That means after one year, the house would be worth $315,000 – a gain of $15,000. Your annual return on your $10,000 investment would be a whopping 150 percent. By contrast, putting the same $10,000 in the stock market and posting a similar 5 percent gain would only net a $500 return on investment.
Attractive Interest Rates
Interest rates are near all-time lows and rates in the 2000’s have averaged lower than those in any of the previous three decades. From 1971 – 2001 there were only 13 months where interest rates were below 7%. While interest rates are up from historic lows around 5.5%, a 30 year fixed-rate at approximately 6% is still a very attractive rate.
Strong Demand for Housing
Our region is growing. Estimates project a growth of 334,800 individuals by 2035 (18% increase) and an additional 176,600 households in this region by 2035 (24% increase). As a result, there will continue to be a strong demand for housing and a growth in jobs. In fact, an additional 145,000 jobs are expected in the region by 2035 (12% increase) with the possibility that this number could double1. Strong job and housing markets often feed off each other and spur greater growth. 1 Southeastern Wisconsin Regional Planning Commission
Remodeling Adds Value
Remodeling can transform an outdated kitchen into a gourmet chef’s dream. It can correct a bad traffic flow, enhance a view, or create a private getaway in your own home. Remodeling keeps you in the location you love, the school district in which your kids thrive, and the yard you’ve spent years nurturing. It is an effective way to enhance the value and function of your current home.
New Homes Offer More
On average, a home built today has 700 more square feet of living space than one built 20 years ago. This means more windows, closet space, spacious garages, larger kitchens and more bathrooms. Combine this with low maintenance, energy efficiency, safety features, and aging in place features that can keep you in your home longer, and you’ve got a home that truly works for you.
Lower Material Costs
The current normalization in the market has already resulted in a drop in the cost of lumber. In fact, material costs have declined or held steady and are currently at a five year low. For a typical 2,400 sq. ft. home you can realize a 10 – 15% savings in your lumber costs. This kind of savings may also be realized in other materials required in the construction of your home. |
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