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Why now is the time to build a log
cabin but be careful!
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Not only the local, but the national buzz is quickly turning to
answer the question - At what point as we hit the bottom of the
construction cost index, are the returns diminishing? Both
private and public projects that have pushed the envelope of
contracting at the lowest cost are starting to find out how low
is too low. As a last gasp for air, many contractors have been
supplying bids that unfortunately can’t be completed for the
contracted price. Without the funding reserves left in the
company, the contractors are walking away from the projects
having already overbilled the Owner. This is leaving Owners with
no choice but to hire another contractor to finish the project,
inevitably at more cost than the project was originally worth.
Both Contractor and Owner alike need to be careful on how far
we push the envelope to secure the "lowest price" for the
project. With a pile of irresponsible bids floating around, we
certainly have a responsibility to flush these out and push for
the best value with reputable contractors and tradesmen.
As many already know, the bottom of the market is one of the
best times to make a great return on the dollar. Just like the
market at it's peak, we have to be careful on how great a return
we are hoping to push for. We should all capitalize on the great
current construction rates; but keeping in mind, it doesn’t take
much to cross the line of diminishing returns. |
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The news shows have declared the
recession is over!! If they are correct right now is the
time to move. The price to build a
log home is the lowest it has been since we started in the business. Labor and materials are at a point where it is
very advantageous to build. We are offering big discounts for log packages and for construction
if a buyer is able to move quickly.
For new construction loans: Call Chris James,
Newcastle Mortgage, 801 589-5100 |
Low interest rates,
high inventories are good news for buyers
Despite
the jittery economy, experts say that now is a great time to consider
building a cabin. Interest rates are at a four-year low, builders
are eager to work, and material suppliers have inventories they need to
move. This may be the last time we see these rates for some time to
come.
“Many log home companies are working very hard to keep their pricing
steady and in line with the current economy.. “This, plus the savings
that can be gained because building contractors are competitively
looking for work, makes this a great time to build.” Translate that to
mean the construction industry is ready to tackle work now and you may
be able to pay best-dollar rates.
A slowing
economy has affected all segments of the construction and home sales
market, but the vacation home arena seems least immune from lasting
damage.
“The increase in oil costs have hurt every industry and the economy has
slowed things down, but Baby Boomers are not the same as first time home
buyers and are now positioned to build for their retirement or vacation
home.
Log homes continue to attract second home buyers and have an intrinsic
value that separates them from the primary home market. Certain parts of
the country have actually experienced an increase in sales and have
passed on their good fortune on to the customer.
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