More people are doing their own labor
I have been really busy making my housebuilding web site a lot better. Please check it out when you get some time, there’s a lot of new content.
It seems that many people are running scared these days because of the financial crisis and with good reason. We have never seen a bigger gap between wages and the price of homes. Everything seems to be going up except wages.
The fact that home values have crashed only means we’re in a housing correction, but the financial crisis is something new. A few years back the banks started pulling away from the 20% down standard to have secure equity.
They did this because the cost of home production was rising at a much faster rate than wages. They knew that very few people could afford to put 20% down on a mortgage.
Contractors kept charging more and more for labor. There were several reasons for this, but the biggest reason is because the banks just gave them whatever they asked for and made it so the homeowner could borrow enough to pay for a new, overpriced home.
This caused a false inflation on the value of homes which we call the housing bubble. As we have been seeing lately, there are many homeowners who can’t afford to pay the mortgages and so they are walking away from the home.
Banks can’t pay investors back the money they borrowed and so the investors are not lending the banks any more money.
This is all part of a natural correction in the housing and financial industry, but that doesn’t mean it’s going to blow over without problems.
Now, more people are realizing the value of doing their own labor. We still need to live in houses and life needs to go on. The price of building materials is very low and it has been for a long time. The price of materials hasn’t had as much to do with the housing crisis as the greed on the part of contractors and banks.
I’m seeing many people building their own homes because they simply can’t afford to pay for hired labor. Those individuals living on a modest income can’t hire contractors to do the work for them. If they do, the house will be finished and it will take anywhere from 25% to 60% of their monthly wages for a mortgage payment.
That’s why traditional borrowing for a home construction loan isn’t working anymore for a lot of people.
It’s a time for change. That means we all need to fight for our rights to do our own contracting labor. Rules and regulations are getting stricter and that means we’re getting set up to fail.
If you haven’t downloaded a copy of my free e book, please download it when you get a chance. It explains why we are in this financial mess.
You can find the e book on my
free housebuilding e book download page.
Happy housebuilding and may god bless you all during this holiday season.