Recent grad, looking to move out west and get involved in real estate development, more so, building custom homes in horse communities. I suppose I am just asking on here to see if anyone knows of some more companies who do this…if you do, please leave a link – thanks so much
There are a number of people who build in equestrian communities. For the most part, custom home builders are small companies that only do a few homes each year. A few larger builders have done tracts oriented toward horse people, but those are few and far between, and are the same people who build golf communities, lake communities, etc. As a recent graduate, your best course is to try to get into a homebuilding company to learn the business, then branch out into specialized construction.
December 1st, 2009 at 11:01 pm
Should You Wait to Buy in a Down Market of Falling Home Prices?
I know the Real Estate Market looks bleak right now. Sellers are thinking: "I will never be able to sell my home" and buyers are thinking: "I will never be able to get a loan in this market". In this case, it could be perception is your reality. Everybody wants to know how to best time the market when buying a home. It’s just natural – especially if you’re thinking about buying in a down market where home prices are declining. You wonder how low they will go and whether you should wait, right?
Some Home Buyers Should Buy Immediately
You’re probably thinking: "Of course, he would say that. He’s a Realtor, and agents always say ‘Now is the best time to buy’." Well, here is why:
· If you are a seller who wants to move up to a more expensive home in a down market, now could be the best time. The longer you wait to sell, the lower the price of your home could fall.
· If you can arrange for alternate housing, a smart strategy is selling now, waiting a few months, then buying your new home.
· If you sell and buy simultaneously, you’ll still be ahead of the game because the price reduction on the purchase is greater than the loss on the sale.
Consider the "Loss" on Selling Your Present Home
For example, say your present house is worth $300,000, but because of high inventory and few buyers, you must price it right and reduce your price by 10%. So, instead of receiving $300,000, you would get $270,000 and "lose" $30,000.
Consider Your Real Profit
Now, consider this. Say you bought this home 10 years ago and paid $100,000. You’re still ahead $170,000, less costs of sale, aren’t you? (This ignores monthly payments, but you would make those if you were renting, too.)
Consider the "Savings" on Buying Your New Home
If you are planning to move up to a $500,000 house, which is located in the same distressed market, you could probably buy that house at that same 10% discount or $450,000. This would mean you had saved $50,000.
Review of Selling and Buying Numbers
1. So you "lost" $30,000 on the sale of your home
2. But you "made" $50,000 on the purchase of your new home
3. Doesn’t that put you $20,000 ahead?
Don’t Forget the Impact of Interest Rates
Which way are interest rates moving? Are they moving up or moving down? If interest rates are near an all-time low and beginning to inch upwards, waiting could cost you more than you would think. You might not be able to afford to buy a home at any price.
· FACT: Each 1/2 point increase in your interest rate gives you $25,000 less in purchasing power.
· FACT: Each 1 point increase in your interest rate gives you $50,000 less in purchasing power.
· FACT: Each 2 point increase in your interest rate gives you $100,000 less in purchasing power.
Look at the Differences Among Purchase Prices versus Interest Rates
If you put down 20% and qualify for an 80% loan, here are your principal and interest payments on the following purchase prices:
· $425,000 sales price, at 8.25% interest, your payment is $2,554.
References :
December 1st, 2009 at 11:45 pm
There are a number of people who build in equestrian communities. For the most part, custom home builders are small companies that only do a few homes each year. A few larger builders have done tracts oriented toward horse people, but those are few and far between, and are the same people who build golf communities, lake communities, etc. As a recent graduate, your best course is to try to get into a homebuilding company to learn the business, then branch out into specialized construction.
References :
30 years in the homebuilding business in California
December 2nd, 2009 at 12:07 am
I’m answering this so I can find your question tomorrow. There is a really nice development outside of Yankton SD. The horse barn is up (state of the art) and a few houses. Lots of lots for sale (oh dear, time to hit the hay) and I’ll pick up a paper tomorrow and add to my answer later. They always have an ad in there.
References :