Builder - December 2008 - (Page 54) BEAT recently occurred in many parts of the country. With high energy costs and the need to conserve resources, it’s also important to remind prospective buyers that new homes today are more energy- and resource-efficient than ever before. Through the use of new materials and construction techniques, today’s homes are built to be twice as energy-efficient as new homes a generation ago. BENEFITS OF HOMEOWNERSHIP NATIONAL NAHB BRIEFS ment that is only a fraction of the total price. The buyer’s return, however, is based on the property’s total value. This makes the rate of return on a home purchase much greater than what it would be on another investment with the same value where the buyer would have to put up the entire purchase price. BUILDING PERSONAL WEALTH It’s also important to remind people about the unique tax benefits that apply only to housing and help lower the cost of homeownership. We all know that both mortgage interest and property taxes are deductible, but the amounts that buyers save can be a real eye-opener. According to NAHB calculations, a homeowner with an income of $100,000 ($74,195 taxable income) who is in the 25 percent tax bracket will see tax savings of $26,532 during the first five years of homeownership given a 30-year, fi xed-rate mortgage for $300,000 at 6.52 percent interest. The same buyer would save $17,121 with a $200,000 mortgage on the same terms. Equally important, profits of up to $500,000 on the sale of a principal residence (or $250,000 for a single owner) are excluded from capital gains taxes. Leveraging is another advantage of homeownership. Buyers can purchase a home and receive the benefits of homeownership with a cash down payTHE NAHB For most households, homeownership is a primary source of net worth and an important step in accumulating personal wealth and assuring financial security. Today, even though property values have declined in some markets, Americans have a total of $9 trillion in equity in their homes. For most Americans, home equity represents the largest share of their net worth. NO PLACE LIKE HOME living in the targeted congressional districts volunteered for the candidates by putting up campaign signs, canvassing neighborhoods, and having the candidates speak at HBA meetings. Positive Press A Despite the positive fi nancial aspects of homeownership, a home purchase cannot be valued in monetary terms only. Not only can homeownership be a stepping-stone to greater fi nancial security, it also provides a permanent place to call home and great personal satisfaction. Academic research shows that homeownership results in a wide range of social benefits, and these benefits aren’t limited to individual households: Homeownership strengthens communities and is truly a cornerstone of the American way of life. B CENTER CORNER RESEARCH Changing Course The latest Soft Market Study shows builders shifting their emphasis to green construction. s the downturn in the industry offers builders fewer home buyers, lower home prices, and a far more competitive industry environment, the NAHB Research Center has released its latest Soft Market Study. More than 300 U.S. home builders, surveyed in January 2008, indicated a shift in emphasis since the beginning of the downturn in 2006 to green home building and energy efficiency from relationships with suppliers and subcontractors. Just under half indicated they were expending “much more effort” on selling homes, with less focus on managing A subcontractors, constructing and designing homes, and improving supplier relationships in the past two years. Increasing home energy efficiency was selected as the highest-ranking change in builder offerings since the downturn. Whereas 50 percent of builders reported that their pre-2006 programs and improvement efforts were primarily aimed at quality assurance and cutting costs, less than 20 percent of respondents said they planned major cost-cutting efforts and quality assurance programs soon. The survey found the greatest shift was to the emphasis on green home building, with some 30 percent saying they planned to have a green building program soon. The downturn seems to have accelerated trends in new homes, with increases in the use of granite for kitchen and vanity countertops, in addition to an increase in the use of both nickel kitchen faucets and undermount kitchen sinks. The use of solid wood front doors; fiberglass patio, side, and back doors; hardwood floors; stone exteriors; and solid interior doors also made gains over the 2005–2007 period. The changing industry picture offers opportunities, and builders and suppliers of building products who adapt to the new environment stand to gain the most when the industry rebounds. t a time when consumers are doing their research before making purchasing decisions, the NAHB has published a brochure for prospective home buyers explaining in depth why the current housing marketplace offers unprecedented opportunities. Despite the current cyclical downturn in the housing market, most households who have not purchased a home expect to do so sometime in the future, and “Opportunity Knocks for Home Buyers” provides detailed information on why today’s inventory, pricing, interest rates, and home features are especially favorable. The brochure also offers advice for prospective buyers who have been discouraged by this fall’s financial turmoil. To download a copy of the brochure, visit www.nahb.org. 54 ■ B U I LD E R de c e m ber 2008 W W W.BUILDERONLINE.COM http://www.nahb.org http://WWW.BUILDERONLINE.COM
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.