The Best Time to Remodel?
Whether it's
saving two cents on a gallon of gas or investing in a major room
addition, everybody wants a bargain.
Everyone loves
a deal. No one likes paying retail.
If you are
considering a remodeling project, now or over the next year or two,
you face a number of difficult questions...
- Can I do
better if I wait to remodel my home?
- Will
interest rates go lower?
- Are the
costs of raw materials likely to go up or down?
You might
expect a professional remodeling company to argue that now is the best
time, financially and otherwise, to improve your home. While it is
true that a remodeler's business depends on people making that
investment, there are some logical and compelling reasons to ignore
the naysayers and move forward with your plans.
Interest Rates: We've already seen mortgage
and construction loan interest rates inch up in 2011. They are likely
to maintain that trend as the overall economy and demand for new homes
continues to improve.
If you
determine that interest rates are likely to go up, acting now can save
money. Every quarter-point change in interest rates is equivalent to
approximately $6,000 for each $100,000 borrowed over the course of a
30-year fixed-rate mortgage.
Materials and Labor Costs: We are in the
middle of a commodity boom. The global demand for raw materials from
countries like China and other emerging markets continue to put upward
pressure on commodity prices. As the price of raw materials goes up,
so do the costs of your remodeling project.
In addition,
those manufacturers, suppliers, and trade contractors who are still
standing after the housing bust did so by streamlining their
operations and honing their costs of doing business. They are running
very lean. In all likelihood, these companies will raise prices if
there is an increase in demand for their services.
Streamlined Operations: In order for our
company to prosper during this difficult business cycle, we've had to
sharpen our operations and systems, cut the fat out of our ledgers and
operate on thin margins. As a result we are poised to meet our current
demand with better processes, improved technology and lower overhead.
Those efficiencies translate into lower costs for those willing to
invest in a new-home project today.
Beyond
the Pocketbook: Remodeling also affords you the opportunity
to get more of what you want in the design and finish of your home,
making it more valuable to your personal enjoyment and lifestyle
needs. In any economy, that logic makes sense.
If you can
look past the headlines and scare tactics, you may realize that in
these times, the best time to move forward on a major remodeling
project may be about to slip away.
Warm
regards,
Austin Schmitt, John Schmitt, Mark Jackson, and
Elizabeth Mitchel
Kingston Design Remodeling
11515 Suburban Place
Fairfax Station VA 22039
(703) 323-6527 - phone
kingstonbuilders@cox.net
www.kingstonbuilders.com
c.
2006 All
rights reserved.
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