First the bad news: the housing market is falling apart. And it is going to be in trouble for at least another year. Lenders have made so many risky loans, mostly of the deadly “interest only” type and adjustable rate mortgages, to people who do not qualify that it threatens to put us into economic collapse. Foreclosures are rampant and sales of new and used homes are way down all over the country.

Along with that are problems for businesses related to housing. Home Depot, Lowes and other companies that supply products for building, furnishing, and maintaining homes are losing money and letting workers go.

Listening to any news broadcast will show you how bad things are and how bad they will get. So…that is the bad news, but maybe not for you if you are starting your homebuilding Ph.D now.

Here is the good news: the housing market is falling apart. And it is going to be in trouble for at least another year. Why is this good? Well it is not good for many but it can be for you. This gives you time to do your studying. A large part of that study is going to include learning about the real estate market in the area where you intend to do your house project.

You will learn important facts by reading the real estate section of the newspaper. It will tell you the high and low value neighborhoods in the area. The site for your project must be where you can sell it to people who have the money and desire to live there. Figuring out the best locations to attract customers like that is something to do during the first year of your quest.

After a year of study you can make an informed decision on where to invest the money you have earned and saved. By then prices will be even lower. Tracking real estate prices will help you know when the market ‘bottoms out.’ Knowledge is power. Learning real estate trends and tactics is very interesting, even more fun than gossip because it has a direct, meaningful effect on you.

As the market goes down so do prices of materials. With an original budget of X number of dollars, during a time like this you might be able to save half. I will talk more about this later. Plywood here has already dropped 20%, maybe more. I have not checked this month. Frugal shopping, low prices and a year’s time equals good news for you.

Here is something for you to think about. The best area to do your house project does not have to be your own neighborhood or even your own town. There may be another location some distance away, maybe 20 or 50 or ?? miles. I’ll help you with a strategy for starting the physical work of your project, if it is at a distance, as these lessons continue.

Start looking at home prices and relate them to the location where you plan to build your project. Recording this information on a map is helpful. Read news stories to become familiar with good and bad parts of town and why they are that way. The police blotter tells you a lot about crime and where it could be a problem. Map out businesses that make noise, have heavy traffic or cause air pollution. Know where schools, stores, churches and other services are located.

Well, you get the idea. It may take studying several locations before you find one you have confidence in, but it is fun to do. As I said, even more fun than gossip, although Brittney forgetting her…. Never mind. Have to go now.

Share or Bookmark