STERLING & HAMLIN HOME BUILDERS SPRING NEWSLETTER

YOUR HOME AS AN INVESTMENT

In this time of investment uncertainty, as the stock market and other traditional investment vehicles disappoint us with under-performance, real estate has emerged as a popular place for investment dollars. Why?

Real estate, as the name implies, is "real". It is solid. You can see it; stand on it. It's not going anywhere. Real estate is in limited supply. Yet, as the population grows and spreads out, demand for real property steadily grows. As conservation efforts spread across the country, more land is being taken off the market, and future uses for land are being limited. Shrinking supply; growing demand. What do you think the implications are for future price trends?

But real estate isn't always a pure investment. it's also something we can use. Your home, your recreation property, may be going up in value each year. But you are receiving other benefits from it. It provides you with a place to live and enjoy life.

One caveat. Real estate has a carrying cost. Maintenance, insurance, property taxes, mortgage payments. Make sure you can comfortably handle these costs, or you might find yourself acting as caretaker for the bank!

Of course, if you're building a new home, you want to make sure you meet your personal requirements for convenience and comfort. But if you also view your new home as an investment, you may want to pay attention to a few factors that might influence the future value of your home.

One key factor is location. What is around your building site? Hopefully, other nice new homes. Building in a run down neighborhood tends to bring down the value of your home to meet the neighborhood values. Alternatively, a nice bungalow nestled among expensive mansions increases the value of your home. Don't overbuild for the neighborhood. make sure your home will "fit in".

Don't overlook future trends. Where is the neighborhood headed? Building up, or running down?

Another key to the future value of your home is the quality built in. If you use cheap components; if you build the cheapest home you possibly can; you can't expect the home to last. Wet basements, leaky windows, unattractive woodwork, and broken faucets are not associated with valuable homes. Quality components, assembled by experienced, conscientious craftsmen will result in a home that will hold its value for years to come, and will cost you less to own in the long run.

What size home should you build? It has become common practice in recent years to build "as much home as you can afford". The thinking is; the bigger the home the better the investment. You might want to question this conventional thinking, Why?

When all of those large homes come on the market in future years, who will be the buyers? Families are smaller than they used to be. energy costs are escalating, and large homes are energy guzzlers.

At Sterling & Hamlin, we recommend that you build to suit your lifestyle; that you only build what you will use. If you entertain a lot, and have a lot of guests, you may want a large home. But don't just build a large home to impress the neighbors. "Bigger is better"is a fad, and fads change.

If you are a young single person with limited savings and income, but want to stop paying rent and build equity, build what you need and can afford. Conventional wisdom says you should build at least a three bedroom, two bathroom home. But if you only need one bedroom and one bathroom, build it. Move into a larger home when you need it. A young single will probably come along and give you a good price for your one bedroom, one bath home, as long as it was quality built.

In short, to maximize the personal benefits and investment potential of your new home, build what you need, what you can afford, and what you will use. Just build it well!

PARADE OF HOMES

The Home Builders' Association of West Michigan is sponsoring its annual Parade of Homes June 24, 25, and 26. Sterling & Hamlin will be entering its model home on U.S. 10/31 and Gordon Road in this years parade. Ya all stop by, ya hear?

BUY NOW

If you are thinking of buying a new home soon, now may be the time. Material costs are escalating as the economy improves. Interest rates are steadily ratcheting up. You may someday look back longingly at 2005, remembering what you could purchase a home for, and how low your monthly payment could be. Home affordability is at historically high levels. Do you think they will stay here?

LAND SAKES!

How much land is available for sale in West Michigan? Well, you might be surprised. We have compiled a list of properties, from small, inexpensive lots, to large acreages, and waterfront building sites. Need help finding a place for your new home? Give us a call.

TRADE-INS

We are frequently asked if we take trade-ins. Yes, in some circumstances, we will acquire your present home, so you can begin immediately to build your new home. Give us a call or stop in. We would be glad to work with you.

SUPER SUB

Ever wonder what goes into building a beautiful new home? Well, it starts from the ground up.

The first guy on the scene is the excavator. He clears the land, levels it, and digs a hole for your foundation and basement. Later, he will backfill your lot and make it level again. He may also install your septic tank and drainfield, trench in utility lines, or construct your driveway.

Your excavator is responsible for many things you don't see. If you want your lot to drain well, if you want a dry basement, if you don't want your foundation to settle and crack, you need the best, most experienced, most honest excavator available; one that is conscientious and looks out for your interests.

That's why Sterling & Hamlin uses Rocky Sorensen of Sorensen Excavating, Inc.