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Home Acquisition Pcses Challenges

Click to see original imageEdlwr’1 Note: This In ihe lint nl n series of four enlclee explorIng “allordsble nlterutives” In the housing crhls Induced by Inflntlnn ud hlqllhlnterest rates. By N. VER!. CIIIIISTENSEN Scripps Lupe Newspapers Remember when your father, grandfather or other kinsman with the help of an expert or two and an occasional assist from a neighbor – built his own family home? Or when the fellow down the street bullt s house piecemeal, adding extra rooms as his family expander? And how about the ymmg cunple who lived hnpizily in a “basement home” unti they could atiord to build the “upslairs”? Necessity – family finances in must cases – dictated these and other innovative ways ul acquire mg an affordable house. With homebnilding currently caught in the crunch of inflation and high interest rates. many Americans may he forced in retum tu such resourceful and economical ways of obtaining a house. “As one builder said: “The demand for homes ls out there but the present cast is prohibitive for most people who need lmmes.” Jack Carlson, executive vice president, National Association of Realtors, says Une “medianprlced American home” now sells (ur :15.000 with an averaze monthly payment nf $672 based on a $50.000 loan at 16 percent. But the Department of Housing and Urban Development. as unted in the Congressional aecord. found the “average price” of a new house (different from the “median price”1 reached a record $84.000 in April. At prevailing mortgage rates of 15.25 percent at that time. the monthly principal and interest ayment on that “average Enuse,” with 10 percent down and a 25-year mortgage, was $941. The average price was lower in the South ‘ $76.l00. in amen regions: Northeast, $94,700; West. $91,400; and North Central States, 590.700. The bottom line. impossible for many lamilies of course, is the monthly payment. But don’! give up hope. Yours isn’! the first generation to face difficult housing challenges. Perhaps “cld-fsshioned” ingenuity and resourcelulnexs can lead you to affordable alters natives. Consider. for example. than posibillues; – Bulldlng your own home. Many a gram with some experlence s done or currently is doing ‘ust that. For example. Buck lllcse. of Orem, a county planner, built a home in evenings and Saturdays years nga. He not only saved money – he “got what I wnnted” plus an extra sense of prlde in the finished product. – Buying an old home and remndellnz it at vuur own once. New homes usually are in new subdivisions. The developer must pass on tothe buyer heavy Costs for land. sewer and water lines. and street lmtrrovements. Old homes lrequen y have an advantage of close-in location as well as having the improvements already paid. A further major advantage miiht be taking over a contract wit an interest rate far below the present levels. Brent Snyder. chief Provo building officer, says whenever pcsslhle the city accommodates people who desire to build all or mot their homes. Expertise to le the job and zoning and building code requirements must be met. of course. Frequently, in contracting a home, the owner reserves the basement or upstairs to finish, himself. in some cases, Snyder indicated. even extra rooms on the main Noor are completed by the individual rather than the contractor. Many owners do the painting, grading. sheetrocking, carpeting or finishing in reduce costs and ease the financing Impact. Even giumhing and electrical work can done hy the owner if he has the skills and his work can pass inspectiunr Pmva Clty permits basement homes under some mning situations. Utah Cmmty requires a story above the ground in the unincorporated areas. — Acquiring a mobile home. which offers modern houslng at fairly low cost. Available in double wide ax well as conventional sizes. some mobile homes are even built with lumber walls and pitched shlngle rools. Costs range as low as $18-$23 rsquare loot compared with $35 and up for huilt-on-site homes. – Manufactured or prefabrlcated Immu. These are bnllt under factory conditions tu sections or modular units and assembled on site. – Bull units on a l range plalntrliitbgllnn, llvln rm, bathroom, bedroom wgatever you can afford at first and completing the house later., – Roofing over n finished balement as temporary llvlng iuarters. Frank Kin?. ark. nays hir young unl y was “very comlorhble” in their basement home. occupied untll they were able to rallxe their drum of completing the home. Basement homes are “out” under s?1ttn:drr;od dlaws perm y 0 . t on the local regulntlons. m wnlng won’t allow them, a Innporary Mme bullt on a cmcmte slah above ground may quallly this to become part of the finished home later, Whatever alternatlve you mt consider, ifs lmportant to expert advice, check runat: laws and codes in advance. investigate financing. Local hnlldlng Inspectors are a good surtimz mmm