Trick to SAVE BIG $$ on Your New Custom Home!

Trick to SAVE BIG $$ on Your New Custom Home!

So how can you build a brand new custom home affordably?

That’s really what my new book; Don’t Buy a New House! BUILD IT Is all about. It gives you the builder’s perspective and shows you how to take advantage of that.

When you see a builder build a brand new house on spec (spec just means she or he is putting up the money to build it and planning to sell it for a profit when complete). They make a lot of choices; where to build, the style of the house, size and floor plan, construction methods, finishes and everything else.

If you want to build a house affordably and save money as I show you how to do in the book, The first important choice you’ll make is choosing your builder. (I devote a whole chapter to this in the book to show you how to go about it).

You want to find a builder who has experience building spec homes in your price range and preferably also in higher price brackets. You also need to be able to trust them and value their opinion.

An experienced builder has a good sense of where it will pay to spend a little more money (the things buyers really care about) and where you can choose more affordable alternatives (things buyers care less about) and they can guide you in making the right decisions. They’ve already done it, so you don’t have to re-invent the wheel.

You definitely want to make choices that make your home suit your own tastes and lifestyle and make it uniquely yours, but you want avoid things that might turn off a buyer. Especially if it’s a major thing that is difficult or expensive to change.

Get the book on Amazon and learn how you can get your new house built for you and actually make money on it when you sell! It’s a win-win!

✅ Get New Book on Amazon: Don’t Buy a New House! BUILD IT

https://www.amazon.com/gp/product/B09PRTVBMH/

✅ Amazon Author Page: https://www.amazon.com/author/rogerluri

✅ Chance to win a FREE Copy: https://LD2development.com

_______________________

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Why You Might Hold Off on Your New House

Why You Might Hold Off on Your New House

The latest housing reports show that owning a home is now more affordable in most markets than renting, but a lot of people are still holding off on buying a new home and many are even paying record high rents in order to postpone the purchase.

Why are people holding off?

Well first, home prices have increased pretty rapidly over the last couple of years, so some people are experiencing sticker shock when they look at prices. They’re just freezing up like deer in the headlights and they’re putting their lives on hold,

But with inflation creeping up, supply chain troubles and labor shortages, does it really make sense to expect future prices to be lower?

Of course the other reason that people are holding off is the shortage of new construction homes.

In spite of price levels, I think a lot of people would be buying new construction homes if they saw them, When it comes to new homes, most people need to see them to recognize the value.

When they see the new designs, finishes and the lifestyle that they’ll offer, they’d buy them. but unfortunately they don’t see it because so few new construction homes are being built and often those are sold before they are finished. Still, the older homes they see just aren’t cutting it for them.

So if you’re thinking you’d like a new home, you have a couple of choices:

You can go out and get into bidding wars for the couple of descent homes on the market.

Or you can wait for more new homes to be built so that you’ll have better choices,

The other choice you have is you could build your own custom home and get exactly the house you want and you can save a lot of money in the process.

Don’t worry, you don’t need to be an architect or designer or contractor to to it, there are lots of great professionals who will help you.

It’s easy to learn more about the process, just get my new book: 

✅ Get New Book on Amazon:

Don’t Buy a New House! BUILD IT https://www.amazon.com/gp/product/B09PRTVBMH/

Of course It’s going to take some effort on your part and it’s definitely not for everybody, but if you enjoy creating new things in your life and building wealth in the process, it will be a lot of fun for you.

✅ Amazon Author Page: https://www.amazon.com/author/rogerluri_________________________

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Lifespan of a New House

Lifespan of a New House

Lifespan of a New House

I posted an article yesterday from the Atlantic; “Stop Fetishizing Old Homes” https://www.theatlantic.com/ideas/archive/2022/01/stop-fetishizing-old-homes-new-construction-nice/621012/?fbclid=IwAR34vZMS8I4eO_sM7RkZhQqVdBIkpHrFej9fwJWUDSURr_f7IUNTYmFRHuE

I got a kick out of the title, but the fact is that homes are just not designed or intended to last forever.

U.S. tax code allows depreciation on income properties over a 27.5 year period, but to keep a building in descent condition, it will need at least one major renovation (or more likely several smaller ones) to make it to 27.5 years.

Major components like roofs, windows, furnaces and water heaters will probably need to be replaced by 15 – 20 years. Bathrooms and kitchens finishes are probably looking pretty dated at 10 or 15 years and have you noticed that all the fancy appliances we have these days seem to be designed to be replaced by the time they are 5 – 10 years old.

When you move into a brand new house today, all the building components are new, all the cool finishes and appliances are new, so you have this honeymoon period of the first 5 – 7 years where maintenance and repairs are very low.

Now If you are the type of person who gets a new car every few years to avoid maintenance and repairs, you know what I’m talking about.

You’d be wise to sell after the first 5 to 7 years and buy a new house. This will get you the most appreciation, because the design and finishes are all still new enough to be similar to a brand new house, So You’ll get a price similar to what a brand new house might be selling for at that time, plus you’ll sell before you need to start to incur costs replacing appliances or doing any re-modeling.

The equalizer that rains on this parade is of course is that your transaction costs may wipe out a big chunk of your appreciation.

If appreciation is very high for a number of years (as it has been recently), you might outrun this by holding a bit longer, but what has happened in recent years is that lifestyles have changed more rapidly and the designs and finishes that people want has changed too. In this situation even houses 10 years old are may be looked at as needing more work to update them. Which of course create a bigger price differential to a new house.

This is why, you are far better off building your own custom home. I did a YouTube video talking about this and showing a comparison of buying a re-sale house to a new house or a new custom house. (from: Don’t Buy a New House! BUILD IT) https://youtu.be/nrFjxvYQtI8

If you do it correctly, You’ll be locking in a big bump in your equity of 10 -15 % of your costs as soon as you move in and this is in addition to any appreciation, so you’ll be putting all that into your pocket after 5-7 years.

To learn how to do it, get my new book on Amazon:

✅ Don’t Buy a New House! BUILD IT https://www.amazon.com/gp/product/B09PSFMC6Z/

✅ Chance to win a FREE Copy: https://LD2development.com

✅ Amazon Author Page https://www.amazon.com/author/rogerluri

_________________________

✅ Let’s connect:

YouTube: https://bit.ly/LD2YouTube

Linkedin: https://www.linkedin.com/company/ld2-development/

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Old House vs New House?

Old House vs New House?

“Stop Fetishizing Old Homes”

Maybe you’d say; “hey, I like all the old designs and finishes and a bit of wear and tear gives it that lived in character that some people find comforting.

For sure that’s true and I’d say; first and foremost, get a house that’s going to make you happy. As long as you understand that you aren’t really saving money by buying an older house.

I mean, If you’ve been shopping for an older home, you already know that if designs and finishes in the house are getting older, you expect to pay less because it’s going to need things replaced and updated.

Of course if you plan correctly, you can recoup money you spend on renovations, but if not money spent fixing up an old house may not be recovered when you sell.

As a professional, I just want people to understand how they can get the best financial results from their investment.

Financially, assuming that you can afford it, a new construction home is a much better investment.

If you take a look at my YouTube channel , you’ll see video with a comparison of buying a re-sale house to a new house or a new custom house. (from: Don’t Buy a New House! BUILD IT) https://youtu.be/nrFjxvYQtI8

It’s not really that hard to figure out if you just add up and extrapolate your costs over the time you’ll own the house and then look at what you can hope to sell it for.

In any case, most people prefer living in new construction because it has the amenities & finishes they want and they don’t have to worry about a lot of maintenance or repairs.

And I can’t think of one person I’ve met over the years that didn’t prefer making money on their house when they sell it. And it’s really not that hard to do if you plan ahead.

If you want to stay in your house forever, all this is probably of no interest to you, but if you want a new house, you’d probably also like to make money when you sell it, so check out my new book on Amazon:

✅ Don’t Buy a New House! BUILD IT https://www.amazon.com/gp/product/B09PSFMC6Z/

✅ Chance to win a FREE Copy: https://LD2development.com

✅ Amazon Author Page https://www.amazon.com/author/rogerluri

_________________________

✅ Let’s connect:

YouTube: https://bit.ly/LD2YouTube

Linkedin: https://www.linkedin.com/company/ld2-development/

Facebook: https://www.facebook.com/LD2Development/

Instagram: https://www.instagram.com/ld2development/

https://www.theatlantic.com/ideas/archive/2022/01/stop-fetishizing-old-homes-new-construction-nice/621012/?fbclid=IwAR34vZMS8I4eO_sM7RkZhQqVdBIkpHrFej9fwJWUDSURr_f7IUNTYmFRHuE

Don’t Buy a New House! BUILD IT 

Build Wealth by Building Your Own Custom House

Build Wealth by Building Your Own Custom House

Build Wealth by Building Your Own Custom House

I’ve been talking about how you’ll save 10-15% or more by building a new custom home rather than buying a new house that a builder built on spec., so here’s how the numbers work:

In Chicago, when a builder sells a house to you that they built, they have to pay about 7% commissions and closing costs right off the top. If they made only a 7% profit for all their investment, that’s 14% that’s already 14% you’d save by building yourself the same house.

Believe me, the builder is shooting for much more than a 7% profit. Think about it, the builder had to purchase the lot, design the house, build it and sell it. For a smaller house in the city, this process will take a year’s time anyway and they’ll have to invest their own cash (probably about 30% of total costs) to get the construction loan.

If they build the same house for you, they don’t need to take out a loan, there is no construction or market risk for them, so they’ll be happy to do it for a smaller profit.

You save the closing costs, a good chunk of the builders profit and the financing is going be cheaper for you because a loan for your primary residence is less risky for the lender than a spec house. you are getting exactly the custom house you want and you get it at wholesale.

If you do it right, you’ll have built yourself instant equity the day you move in. This equity bump is the game changer that builds wealth for you independent of any market appreciation.

Amazon New Book Release:

Don’t Buy a New House! BUILD IT