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.

Advertising Techniques

As you all know, the building industry has come on hard times. Within these walls that I call work, I have begun to think of two things. One, what else can I do to advertise my business. Two, do I need to diversify or even change my business focus.

I have a hobby of domain names. I own several. Actually saying I own several is an understatement. I have found domain names to be a very unique advertising tool for me. I own the the local city I live in domain name for builders. In other words I own "mycitybuilders.com" I currently don't use it specifically for my web address, I am trying to make it a small directory for local builders.

However, if that doesn't work out, I have always thought I could forward it directly to my website. See, I have always felt that remembering a catch phrase or something simple like mycitybuilders is easier than remembering my specific name domain name. Even if I don't want that name specifically for my web address, I can forward it on to my specific website and reap traffic or "people that type that specific web address right into there browser." Is it the end all to my marketing campaign. No! but I feel it is a start, especially as the internet grows and grows, I want the specific name for my city related to my building group.

Also as I drive to my job sights during the day, I can't help but think I need to diversify. I have been far to long dependent on specifically custom homes. If my market dries up or I lose one client, I am in trouble. Knock on wood, I haven't had a problem for 12 yrs, but I think it is time to grow. It is kind of like money in a savings account. I can let my money sit in there and it is safe, but over time it actually is losing value because of inflation. I need to do something with that money to make it grow. Same holds true for my business, I have been conducting business as usual for years, with many great ideas to grow, but never implementing them. It was just to easy to keep coasting along. It's like in the book "Good to Great", the author makes the comment that it is easier to go from awful to great than it is to go from good to great. At the good level it is just to easy to sit around and accept what comes your way. At the awful level, you have no choice. You must do something to survive.

That is the way I feel now. By next spring, I better have done something to make my business grow or I may be in trouble. In a way I like slow downs and problems in the market. It forces you to think about your business culture and how you plan to do business in the future.

I hope for success to you all in the coming months.