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Is Your Home Worth the Price?

posted September 1, 2006 - 7:40pm
Is Your Home Worth the Price?

I happen to live in one of the fastest growing states and near one of the fastest growing counties in the country. Every day while I'm driving to and from work, or while I'm working, I see mile after mile of new shopping centers and fancy residential developments and apartment condo communities. It doesn't bother me to see the area growing, but it annoys me to see how the homes in this area are being built.

Interest rates have been at all time lows recently and the economy is in steady growth, so home ownership has become a top priority on many people's lists. With a higher demand for real estate and new homes, property value and housing prices have increased dramatically. However, with this increase in price, there doesn't seem to be an increase in quality.

On any given day, I can drive through a neighborhood and watch many different contractors quickly filling streets with brand new homes and condos. Why they are called condos, I'm not sure. They are just apartments to me, but I'll save that argument for a later posting. What disturbs me is the fact that these houses are being built with wooden frames, plywood and stucco. Now that may seem normal for people who don't live in the southeast where there is a constant threat from extreme, global warming-fueled, category seven hurricanes. It probably wouldn't even take a strong hurricane to annihilate one of these feeble structures. Your average mid-summer thunderstorm would probably send me packing and waiting it out at the local evacuation shelter. It's surprising that Florida residents would even consider buying these types of homes, especially ones who have experienced a hurricane's destruction.

The low quality building really isn't even the worst part. It's the fact that a three bedroom, two bathroom home complete with plywood and stucco exterior and drywall interior, will probably cost you over a quarter of a million dollars and possibly more if you're in an "upscale community." The neighborhood may have beautiful landscaping, good public schools, and expensive malls and restaurants, but that just means you'll end up paying $350,000 for a sixth of an acre topped with a tropical storm death trap.

Now I was always told that you get what you pay for. Apparently, 20 years of full-time work with some weekend overtime only gets you 20+ years of house repairs, ulcers, and weekly evacuations between June and December. I'd rather work the rest of my life and pay that extra $100,000 for a nice brick home. Or better yet, I could save some money and just buy a cozy little mobile home and live in a quiet field in the middle of Kansas.



Comments

There's a reason

why the phrase "pre-war building" carries such weight in NYCity apartment listings--people know things were built to last back then. Some modern construction looks like they threw up some corrugated cardboard and spray-painted it white. The real-estate bubble is gonna burst--or maybe just slowly deflate--the only question is when.

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