There are some questions out there within my industry: Are we going to be able to sustain this rebound we are in for our market? Is green building a fad that will go away soon? How about the commercial market — how is it doing, and how is it affecting our residential market? Land values — are they going to remain this high and go even higher? Finally, the big question is one people really like to speculate over — what about this year’s presidential election? How will it affect our industry?
Interestingly enough, my answer to all these questions is positive regardless of however it actually shakes out. The way I see it, finally most of us aren’t scraping by just to feed our families. This lift in our market needs to be capitalized on to help spur our economy, our energy level, excitement for our jobs.
The signs are good now. Sales are on the rise, land is being developed, which helps increase our supply, and, best of all, confidence from our client base has been built back up. Just this morning at the gym, I picked up a client wanting to buy and hold some real estate; he is in the financial services industry and figures the most promising investments people can make (as usual) are in the real estate market. Let me give the same advice to you as I gave to him and many clients this year who have not been able to see returns on their real estate investments since 2005-ish. Homes we build for people are not meant to be short-term investments. If you plan on selling property any time soon after you buy it, there is probably going to be a loss associated with that sale. There is a small market for flipping property, although for most everyday home buyers or investors, this is not the route to go. Buy and hold your investments into your main residence, your vacation home, your rental property, your commercial office or retail space. Like Bill Knapp said in the paper this summer, pay cash for some land and hold it. Bottom line is that there is a lot of money to be made in our industry, just as there has been in the past. Very similar to life, in real estate there is no quick fix.
Let me close by tying this into the green thing somehow. Just as the market in our industry is finally warming up again, the green building thing will be gaining momentum as well. The automobile industry is, and has been, going green regardless of your take on it. They are showing us there are many buyers out there for their green machines. Our industry is right behind them as people realize the financial benefits and quality of products we are, and will be, producing into our market.Information provided by Matt Connolly, Generation Green Builders, 3521 Beaver Ave., Des Moines, 515-453-6196.