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The Current
Economy & Your Project
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In some
respects we are contrarians (people who go in an unexpected
direction when many others go in other directions). Right
now, we have been told that the economy is challenged and
possibly recessionary. This may or may not be true.
The important thing to remember is that much of this is
perceptual. It may not be true for your circumstances.
If you are doing well, do not allow media hysteria to influence
your happy plans to build a nice mountain home. There is a
very good reason to persevere and do what is right for you,
rather than cowering with the crowds who “wait for better
times to come.” This reason is simple: you have a
buyer’s market right now for real estate. Material
and labor prices will likely continue to escalate due to a shift
in the World’s economy; with China building at a fast pace,
consuming much of the steel production of the World and the USA.
This will probably only get worse in the coming years, so buy
now for your mountain home! The obvious question of this
philosophy is: “Okay, when do I know that things are as low
as they are going to go, and when do I know when market demand
is at an all-time high?” This is difficult to judge
with regard to stocks and mutual funds, with the exception of
statistical histories of performance for individual stocks,
funds and the stock market as a whole. Even so, so-called
economic gurus still can never be certain of when is the best
time for any particular buy or sell action. In our
opinion, no one will ever be able to do this with any certainty,
as the world’s stock markets are too complex to predict. |
| The real
estate and construction market is a different thing. Based
on our experience in the design and construction world, we know
that the real estate market is very slow, and therefore prices
have reduced substantially. This is a fact. NOW IS AN
IDEAL TIME TO BUY REAL ESTATE. If you wait until later,
you are likely to pay more; it is that simple. The same
goes for construction materials and labor. We have seen
land prices continue to decline and material and labor costs
continue to increase. We believe these trends will
continue, which makes a good case for moving ahead with plans to
build now. |
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Photo
courtesy of Wills Builders, Inc. |
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OPEC keeps
raising prices and some major oil companies have made their
policies publicly known: that they will continue to raise prices
as long as people buy gasoline, which of course, they will.
Therefore, prices will keep going up for oil and gasoline and
there is no advantage waiting for this to go down, because it
probably will not. Unfortunately, the increase in fuel
costs is probably much of what is behind rising material costs,
even though construction has slowed. Once demand for
materials goes up, it is likely that material prices will
continue to escalate, due to increased market demand.
Steel alone, has gone up about 7% in the last year, and is
expected to rise another 6+% in the next year. Build now
to avoid possible continuing material price escalations. |
| What will
happen to your project, when the economy turns around and demand
for mountain real estate and skilled builders and specialty
materials increases? You will be one among many. Don’t
let this happen to you. Take advantage of the lull in the
economy and have everyone treat you like a king and queen, with
the best service and lowest prices possible. Financing is
at mid to lower single digits; something not seen since the
1960s and 1950s. You have a unique perspective: you can
see that your position is one of advantage of lower prices.
As wise realtors have said, “God ain’t making any more
of it,” referring to mountain land. Get your piece of
God’s country now, while it is available at below-normal
market prices and favorable terms. |
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Economic times occur in
vast timewaves. It has been about 50 years since the current
interest rates prevailed. Don't wait until 2058 for it to happen
again! Half the challenge of being successful is recognizing the
position you are in and the value of opportunities around you. Take
advantage of today's wonderful buyers' market! ------- Rand
Soellner, Architect
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| Information
indicated on this page and this website is of a
marketing nature and should not be used for actual
designs without involving a licensed architect and
engineer. Use of anything contained herein is
without any liability to Rand Soellner Architect and you
agree to hold harmless Rand Soellner and Rand Soellner
Architect for usage of anything indicated on this page
and this website. Everything contained on this
website and this page are copyright protected and may
not be used without Rand Soellner’s express written
consent. |
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Photo background
of historic timbers courtesy of: Antique Cabins &
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