02/02/2022
Knowledge is Power! And having the right knowledge can help put some money back into your pocket. So Southern Utah, let's get down to the nitty gritty, and let's talk numbers.
For awhile now, we have been watching the cost of housing sky rocket here in Southern Utah. Getting to the point that our lower income families, are now having a hard time finding a place to live. Families being kicked out of their homes due to increase in rent. At the same time companies are having a hard time being able to employ enough people to keep their companies up and running. You see short staffed signs everywhere. And with the costs of living going up, these signs and conditions are only going to get worse.
So let's talk figures for Homes, since this is one of your major monthly expenses. Right now according to realtor's in the area, homes are being purchased at between $275 - $300+ per sq ft. That would be $500,000 for a 1,818 sq ft home. I have been bidding out some homes recently, and their cost is coming in at around $215 - $250+ per sq ft. That is a huge difference! We are talking about $110,000 difference just on the cost of the home. Then you need to take into account your mortgage interest over the span of your 30 year loan. If any of you have not seen an amortization chart, educate yourself as soon as possible. The sooner you can pull yourself out of this cycle the better. You will be spending about $259,000 just in interest to the bank in the span of those 30 years on that $500,000 home loan. 🤑 If you built your home for the lower cost, that could save you about $56,500 in just interest. So the cost difference and the interest saved would be about $166,500 over that 30 yr span. And you have a lower monthly payment with the more affordable amount.
So if you look at building as a stressful situation and that's why you avoid it, is the stress worth the savings of $166,500 or more? Thats a choice you would have to make for yourself. But if you are looking at purchasing a home, or know of someone that is shopping, send them our way. Let's help get families into affordable nice homes and stop taking advantage of the current market situation.
We work on a cost plus structure. The Homeowners see all estimates and invoices. Full transparency. A system I feel keeps Homeowners informed, and Contractors honest.