I somehow doubt that the cost of building materials or labor is going up. There is so little demand due to lack of new construction starts. On the contrary, have you heard of anyone in construction getting a pay raise lately? What could be driving the prices up if there is very little demand? On another note; does anyone else believe the reason the bond on TV homes is paid separately is to remove that figure from the appraised value of the new homes. Morgage lenders and traders might balk at providing loans for homes that are over priced in comparison to appraised value. I know, I know, it's the life style but that does not compute into the appraised value of the home for new construction in my view. In effect, you are taking out a second mortgage to finance the bond amount. You just have to wonder why other developers include the infrastructure cost in the price of the home. If TV developer is separating it, there must be a good reason and advantage to him. Anyone disagree or have a better reason?
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