Timber Frame Prices
According to the US Census, building permits for privately-owned homes rose to an adjusted annual rate of 715,000 in April 2012, a 23.7% increase from April 2011, when there were just 578,000 permits issued. And May 2012’s numbers are the highest since 2008.
With the housing market in recovery mode and new residential construction on the rise, a unique opportunity exists to take advantage of what are still comparatively low material and labor costs while enjoying accelerating appreciation. Whether it’s a new home, addition, vacation home, or a commercial property, analysts agree that those who build now will realize the highest return on their initial investment.With markets such as Florida and Las Vegas aside, one of the most stable nest eggs an investor can choose is real estate. Large, tract-style developments have had more bubble-like risks in the past decade but one-off, unique, high quality homes expose investors to much lower risks. Compared with other options, including stocks, IRA’s, and CD’s, investing in real estate has been proven to outperform on many levels. Comparing the numbers, real estate continues to be a better choice in investing your money than the stock market, especially with recent market performance returns in mind.
Interest rates are lower than ever and material costs are remaining relatively steady for now. General contractors are available and hungry for any work they can get, coming off of a two year building slump. “(According to the National Association of Realtors) in April 2012, homes changed hands at a record pace of 7.2 million per year, at a median price of $206,000, up 15.1% from a year earlier. The last time home prices rose so fast in one year was in November 1980, when prices shot up 15.6%,” says Forbes Magazine.
“When it comes to long-term return on a real estate investment and new residential construction, unique differentials, such as energy-efficiency, solid construction and, as always, outstanding location are what make the greatest impact,” said Bryan Warren, Owner and Principal Broker at Warren Real Estate, an independent real estate company located in Ithaca, New York. “Homes that both inspire as well as provide a return on investment and energy savings throughout the year are going to lead the way through the coming recovery.”
In addition to building “green,” adding an architectural novelty to your home will pack your investment with a high-quality differential, bringing your return even higher. Features such as outdoor kitchens and patios, or unique architectural styles such as post and beam, or timber framing, provide an aesthetic appeal that will lure in potential buyers while providing energy efficiency with the addition of SIPs to enclose the structure. Exposed timbers, quality materials and cathedral ceilings are features that bring your real estate investment the distinction it needs in order to thrive in a growing economy.
For those looking for a strong long-term investment, this is the time to choose new real estate. And if you’re choosing to build, there has never been a better opportunity to engage in a relationship with your architect, builder or home design/build company.