Should You Build A Home 2021? (Watch Before You Decide). It's no secret that 2021 (so far) has been one for the history books when it comes to the housing market. Between record lows in foreclosures, historically low interest rates, the amount of homes that are in the inventory, millions of mortgages in forbearance, and a wave of new millennial buyers.....we experienced a bit of a crazy ride in the last 12 months. With it being very difficult to put a bid on a home right now without going over the asking price 10-20%, many have played with the idea of building a home....so in this video, I am going to breakdown the pros and cons of building your own home in the year 2021! 0:00 Intro 2:18 Con #1 for building a home in 2021 3:03 Con #2 for building a home in 2021 3:52 Con #3 for building a home in 2021 5:06 Pro #1 for building a home in 2021 6:10 Pro #2 for building a home in 2021 7:00 Pro #3 for building a home in 2021 8:10 Final thoughts about building a home in 2021 So there is equally and upside and a downside when it comes to building a home in 2021. Lets start out with the downside, the cons of building a home in 2021. Con #1 is the risk of values plummeting due to a market crash. In the last 12 months there has been A LOT of talk about a housing market crash. That's probably like the biggest searched topic on YouTube for the real estate folks but at this point, it's more of a question of when? So of course there is that risk of building a home, expecting prices to be at a certain level and instead having value drop. In 2008, we saw an average drop of 33% across the board in average home value and with the cost of materials and labor being so high, that becomes a bit problematic. Con #2 is the cost of materials and delays. Crude oil, a starting point for paint, drain pipe, roof shingles and flooring, has shot up more than 80% since October. Copper, which carries water and electricity throughout houses, costs about a third more than it did in the fall. And not to mention, the price of lumber is up 250% in the last 12 months! Con #3 is the cost of labor. At the end of the day, materials aren't the only cost of building a home. Not only do you have to cover the cost of labor for the actual construction, there is also costs associated with prepping and site work the land around the house. As a matter of fact, the ratio of labor cost to material costs is about $1.28 in labor for every $1 in materials. Pro #1 is the amount of equity post-construction. There are two ways of looking at it here. One is if you build using cash or a line of credit, two is utilizing a construction loan to build. If you use cash or credit, you'll obviously have full equity in the home. Even if you used a construction loan ๐Ÿ˜ƒ Thanks for Subscribing & Liking our Video! ๐Ÿ“ง โŒจ๏ธ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com ๐Ÿ“Š Pay Off Your Mortgage In 5-7 Years (On Average): https://www.youtube.com/watch?v=eGVn9iq1e6c ๐Ÿ’ป JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup ๐Ÿ’ณ Are you a Business Owner? Start Accepting Credit Card Payments with Lower Fees: http://emap.easypaydirect.com/go/signup/vf8d3N ๐Ÿ“ก PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 ๐Ÿ”Š Our Podcast: ๐Ÿ”นSpotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B ๐Ÿ”นiTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 ๐Ÿ“ง Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #realestateinvesting #thekwakbrothers #realestate ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.