Saint Anthony, ID (PRWEB) June 21, 2006
Back in 1970, working people with just one job could afford to buy a nice home and a car. That person could have a family and a few of the luxuries of life while still being able to have one parent stay home to raise the children. The average sized house cost around $25,000. An average sedan cost around $3,000. The average baby delivery, free of complications, cost around $500. Life was manageable with one average income. Minimum wage was about $2.00 per hour.
Now, 36 years later in 2006, the world is an incredible and wonderful place for certain. But amidst the financial successes of so many, remains a class of less fortunate people that is ever widening. Common people are playing the game of life using old-fashioned methods for managing money taught to them by their parents. In the industrial era, hard working people with integrity could get by with one income.
Now, in the information era, that same type of home now costs around $200,000. An average sedan now costs around $30,000, and a baby delivery, free of complications, costs around $8,000. The real kicker is that minimum wage has only risen to an average of about $5.15 per hour.
So, the cost of homes has increased to around 900 percent it’s cost from 1970. The cost of a new car has increased to around 1,000 percent, and the cost of a baby delivery has increased to a staggering 1,500 percent. Minimum wage however has only risen by about 275 percent.
The ratio of income to expenses is no longer manageable with one income. Usually both individuals work and children are raised in daycares or school. This isn’t anyone’s fault, but it is everyone’s problem and many people feel like failures for getting behind financially.
Parents did the very best as far as they could foresee, but people need to do things differently to succeed in this day and age.
People should be able to do their own work to save labor costs where they can. People can’t build their own cars because of so much technology and they also need to be safe. People really shouldn’t perform their own medical operations either. They should probably leave that one to the professionals, but modern homes are expensive because of hired labor costs. Homeowners absolutely should be able to build their own homes. The quality and safety would be maintained because all homes have to be inspected several times before they are released to the homeowner regardless of who does the labor.
Ten years ago, Larry Angell was a low-income wage earner. He and his wife really wanted to buy their own home, but they were turned down every place they went to ask for a loan because of low income. It was then that he learned from his friend, a contractor, that homes have a high price tag only when contractors build them. His friend told him his story about building his own house by himself and saving almost two-thirds the cost of the home.
After following his friends advice, Larry and his wife were able to scrape enough money together to start the foundation and make the walls and roof. They would use part of each paycheck to buy building materials and do their own work on the house. They reached the point where their home was far enough along to have sufficient value to get a construction loan to finish it.
In the end, all the materials for their home cost them only $60,000, yet the home appraised for $140,000.
They figure that in the long run over thirty years, the difference of financing a contractor built home, compared to only financing the materials at ten percent interest will save them around $240,000 in finance charges.
They have low monthly payments and was able to move into their home with over fifty percent equity in it. That’s a point that takes most homeowners close to twenty years of mortgage payments to reach.
Building their own home has given them more financial options to help face an unfair world. They have been able to use the equity to start a business and get an education. It has turned their home into a financial tool instead of a financial burden.
Now, after helping several people do the same thing that they did, Larry and his wife, Lorena realize that most people only need a gentle push in the right direction to be really successful. Most of the time, they only need to know how to build their own homes and then it all falls into place. They love helping people reach their goals of building a nice home, especially when the people with low income otherwise had no chance of getting ahead in life.