GeoThermal Radiant Floor Heating

We started a new project late this fall. Projects are fewer and farther between, but at least we are still working. I feel blessed to have a job. This home has been really fun. We are back to the basics. This is the first time I have framed one of my homes in about 6 years. I like it, it feels good to get out there and pound nails.

What is new about this home is that we are using the earth to heat the home. It is not new necessarily to the industry, but it is new to us. The geothermal radiant floor heating system we are using is going to take water that is pumped into a closed loop system outside in the earth and heat the home. The picture next to this paragraph shows the main lines coming from outside the home to the mechanical room. These lines run under the footing into the field outside the home. We have about 3 acres around this home to work with, but in some instances when you don't have the acreage, you can use wells. Then the piping would go straight down into the earth. This system works just as well, but there is an increase in the cost to install.

Along with the Geothermal, we are using 3" of closed cell foam to insulate the exterior walls. Using the earth's energy is one thing, but if you don't have adequate insulation, you might be trying to heat and cool the home non stop. Our local supplier, Gypsum Supply, installed this for us and I have been quite happy with the result.

The home we are building is in Texas Township in Kalamazoo County, Michigan. We are looking forward to having it in the 2010 Parade of Homes. Next up.... the radiant floor tubing and furnace install.

Fix Housing First

I think we might have a solution to the never ending construction downturn. NAHB as part of the Fix Housing First coalition is proposing some additions to the previously issued Housing Stimulus Package issued in July 2008.

The Fix Housing First coalition would like to see the following additions to the tax credit:

• All primary home purchases between April 9, 2008 and December 31, 2009 would be eligible.
• The credit amount would be increased to 10% of the priceof the home, capped at 3.5% of FHA loan limits, brigning the credit to a range of roughly $10,000 - $22,000.00
• The currnet recapture provision would be eliminated. (no pay back of the $7,500) repayment would only be required if the home were sold within three years
• The credit would be available at the time of closing, making it easier to be used as a down payment. (great idea)

A big second part the housing stimulus package would be to provide a low mortgage rate for buyers. 30 yr fixed rate at 2.99% on homes closed until June 30, 2009 and 3.99% on homes closed between June 30 and Dec. 31 2009

I have always felt, that this second component is what will drive the recovery. We need to get the rates down where it makes sense to sell your home even if it is at a reduced rate. Long term that low interest rate will be a major advantage to the pocket book of the average american.

For a further review of the info visit www.fixhousingfirst.com

Stuck in a Rut

Why is it that we builders are a hard breed to update. We always look to the past. Now I am not saying that referring to what has happened before isn't good to look at, but we need to update ourselves.

Here in Michigan, we have finally started to educate ourselves. In order to become a builder in the State of Michigan, you have to go through 60 class hours before you can take the test to become a builder. True, it has blocked many from becoming a builder, but doesn't it give our industry a better feel. In order to maintain your license, I believe it is 21 hours for those with license that is less than 6 years old. Me, I have to only take 3 hours each license period. (probably a good idea to take more)

There always seems to be a struggle to look at the positive in this industry. Let me relay some facts on to you that were given to me today:

1. 37% of all home owners own their home outright..... no mortgage

2. 94% of all those that have mortgages pay it on time

3. Total equity in homes less debt is $9 trillion.... yes... $9 trillion

That is some great information. I know we all feel beaten and downtrodden, but we must keep our head up. We must be looking for new opportunities at every corner.

One thing that I have always struggled with in this business, is the lack of built up relationships. I have always felt that the builder builds a relationship with a client only to lose that client after the job is done. I believe it is now my task to improve that relationship. How do I extend the "good will" beyond just the one possibly two jobs. I need to think of this in a positive light not in a negative one.