Owner Builder - Why Lot-Homesite Selection is the Most Important Decision in the Process!
So what things should you consider when researching where you should build your Dream Home.
#1. "Follow the Smart Money!"
Simply stated, this strategy is finding out what major developers are planning to do in the area! Are there are master planned communities in the vicinity that are either in the planning stages, under construction or currently seeking civic approval. This is vitally important as master planned communities are major contributors to value increase and land value appreciation due to the extensive research and resources they engage into a given area. A master planned community is a development that not only includes starter, move-up & estate homes within the development, they also include the plans for the schools (elementary, middle & high schools) as well as apartment complexes, commercial development like grocery stores, retail strip centers and quality of life amenities like parks, walking trails and entertainment facilities for the entire family.
#2. Build in or close to a Master-Planned community development.
As I stated above the developers for these master planned communities have spent hundred of thousands of dollars researching the area and it's viability and you can piggy-back off of that knowledge by building in or next to these master planned communities. Another benefit to this strategy is you get to take advantage of the HUGE cash investment the developers are making into the area as far as commercial development (malls, strip centers, gas stations, schools and hospitals). Fast access to these creature comforts have a dramatic impact on the popularity and potential appreciation of a given area.
#3. Exodus from Suburbia
A few years ago there was a really good documentary that was done by this name "Exodus from Suburbia" and in a nutshell it foretold what we have experienced in the last 6-9 months regarding gas prices here in America and the world for that matter! This documentary talked about how gas & energy prices would continue to rise and thereby force the population trends and migration to shift from the suburbs back to the inner city due to the cost of gas. I have personally watched this trend have a dramatic impact on Inner-city land prices here in Houston as I can recall lots in my old neighborhood that sold for as cheap as $5000 back in 2002-2003 are now selling for $35,000! The Inner-city areas of cities all around the country are undergoing a major renaissance and are definitely worthy of consideration.
#4. Do not buy too far ahead of the "curve!"
This strategy speaks to buying in new areas that are anticipating development that has not yet started! I have a client who I am working with right now and the waterfront lot they are buying costs $55k however the person they are buying the lot from paid $69k six years ago! So the person we are buying from in essence bought "too far ahead of the curve!" They bought several years in advance of this area really becoming popular and now many are selling for a loss! The reason this happens is because people do not perform adequate research to determine just how much is planned as opposed to how much has been approved and/or are presently under development.
You see when the land owner bought the lot six years ago for $69k, no major master planned communities were planned and there was no catalyst for the area becoming a popular destination. However 3 years later, a major developer purchased land in the area and announced a proposed community that over time manifested into what has become Houstons most expensive middle class community. So he had the right idea in purchasing in that area he just did not have the right timing and as a result of that he lost several thousand dollars.
Let me explain... see there are many "proposed" projects in a given area and it is good to make note of those projects but more importantly you want to be aware of the projects that have gone beyond proposed and are now approved and have begun construction. You see many proposed projects never get off the ground for a variety of reasons so you never want to invest your financial future and Custom Dream Home on something that is proposed that never gets off the ground. So when performing your due diligence, be sure to look at what projects are currently under construction and do not be afraid to pass on an area that seems too speculative.
Hopefully you have enjoyed reading this article as much as I have enjoyed sharing this valuable information with you. This is just a snippet of the information I share to my subscribers and I trust that you visit us and join with us, until the next time, I wish you the best with your Custom Dream Home project.
Tyron C. McDaniel, author of the "How to Build Your Custom Dream Home for Less!" Owner Builder system has been actively involved in helping people realize their dreeams through real estate since 1999. By far Tyron has created the premier system & toolkit for Owner Builders that educates and empowers the average person to with confidence go through the process of having their Dream Home built whether they want to build it themselves, contract it out to a small Builder/General Contractor or contract with a large Tract Custom Builder or Design/Build firm. Either way, this system will show you how to negotiate and save thousands of dollars on your Custom Dream Home project and view the entire process like a Developer so that your project goes off without the normal stress, strain and struggle associated with building a home!
Tyron has released several informative videos, worksheets and articles that are just as informative that you should read write now by going to http://www.MyDreamHomeforLess.com As Licensed Mortgage Banker in 48 states who specializes in Owner Builder Construction Loans, A Licensed Real Estate Expert and New Construction Consultant, Tyron has a unique mix of experience and skill-set that you simply cannot find from the e-book guru's and infomercial contractor list selling homebuilding programs you may encounter. If you want true nuts and bolts insight from the frontlines, you have found your guy, Tyron C. McDaniel commonly known online as "The Custom Dream Home Guy!" Visit Tyron now at http://www.MyDreamHomeforLess.com where you will find a few "pleasant surprises!" Talk with you soon, and we look forward to helping you make your Custom Dream Home project a Success!!!