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Show Readers Ask "Should We Build Now?" I from SMALL HOMES GUIDE 1 Perhaps the most Important question ques-tion in the minds of those who are planning a future home is, "In these hectic days of governmental planning, plan-ning, should I go ahead with my home building plans; or should I wait until some time in the future when conditions might be more favorable?" fav-orable?" To answer this question we have called on many experts in the field of new home building. One nationally known authority, W. Wadsworth Wood, whose job as publisher of SMALL HOMES GUIDE keeps him in constant touch with all phases of new home building build-ing has been interviewed to give you the facts that will answer the question "Should you build now, or wait?" Situation Confusing Mr. Wood was asked to analyze the flood of governmlnt controls. What they are, why, and how they will affect the value of your home. His opinion was also asked concerning con-cerning possible future developments develop-ments and whether the cost of labor and materials are likely to go higher or come down lower. Mr. Wood states: "Tt. is nhvinnc that, the rflnid build your own home and get the best possible value at the right time. The reasons that might influence you to postpone your cherished objective ob-jective could include such Items as the three types of government regulations outlined above; costs of the various purchases you will make, lumber and building materials, mate-rials, mill work, roofing, plumbing fixtures, heating plant, kitchen equipment, etc.; whether labor costs will come down or whether you will be paying top union wages for mediocre workmen due to the scarcity scarc-ity of skilled workmen; whether the investments that you make in new rugs, draperies, furnishings and decorations dec-orations will be more dear under present day conditions than they might be under so-called normal conditions. Conditions Largely Favorable "Our advice Is to go ahead, provided pro-vided you have the down payment necessary. Your own area may even be better off than If you had to compete with vast low cost housing projects for the building material and equipment you will need. Those of you who can qualify under the change of regulations restricting home construction and building materials and equipment pouring out of Washington these days is most confusing. It is too easy to get lost in this flood of controls controls over the amount of critical metals, steel, aluminum and copper that one is allowed for various types of residential structures controls on the percentage of down payment pay-ment that must be made on the new home different for GI's and different for defense areas controls con-trols on wages and prices that have been changed several times by OPS. "Why does the government put on controls? What are these controls? con-trols? What red tape is involved in securing building products and building equipment using these critical metals? The "why" of controls con-trols is answered because we are committed to a vast defense program. pro-gram. To have a runaway home building boom under these conditions condi-tions would start prices and wages soaring. Neither would we get value received out of the taxpayers' biL-lions biL-lions for defense nor could the individual in-dividual home owner realize his ambition of a good home at a fair price. new aelense housing bill as GI's or are in defense areas will be benefited because of the liberalization liberaliza-tion of Regulation X, and the lower low-er terms provided under the new defense housing bill. "The self-certification by the builder to obtain the critical materials ma-terials needed has now been greatly great-ly simplified. Rather than detailing here all of the regulations pertinent to each particular case; for example ex-ample 1,800 pounds of steel is permitted in single residential structures, struc-tures, 35 pounds of copper, etc., we suggest you obtain the exact regulation in your own case from a local builder of your choice. "This same council applies to credit regulation. For example, the new Defense Housing Bill reduces the down payment to 6 per cent on new homes costing up to $7,000 for GI's in defense areas and only 8 per cent down for homes costing between $7,000 and $12,000. We suggest that you get the benefit of the best available avail-able financing plan through your own local bank or building and loan association or from the local FHA. Lumber dealers and builders will also be familiar with local credit cred-it conditions that might be most favorable to your own particular case. Housing Costs, Up or Down? "A word as to housing costs. Today To-day labor is 75 per cent of the total cost and materials 25 per cent, as compared to the old average rule of the thumb where 50 per cent was for material and 50 per cent for labor. We don't expect labor or wages to come down any time in the forseeable future. As to building material and equipment prices they have for the most part leveled off. But suppose an Increase or decrease of 10 "per cent was apparent when you were purchasing the materials required for your new home. It would still mean that the total cost would be only 2V2 per cent more or 2'i less. The very fact that you have Intelligently combined all factors a good building site, various materials ma-terials and equipment of good quality, qual-ity, all put up with workman like labor then the combined worth should be more than the actual cost of all of these elements." Three Types of Controls "The government in order to prevent pre-vent the above situation has set up three different types of controls. The first, known as CMP (Controlled (Con-trolled Materials Plan) limits the amount of these critical metals that can be used In the construction of dwelling units. The second control is price. The Office of Price Stabilization Stabili-zation has set up regulations to prevent an undue increase in cost. The third is credit. Regulation X charges both the Federal Reserve Bank and the HHFA with the responsibility re-sponsibility of tightening credit controls so that substantial down payments were necessary for the purchase of homes. These controls have so effectively cut down the number of new homes that now Congress has voted to liberalize credit terms where new housing is needed. "In this article we will try to analyze an-alyze WHY government controls; WHAT they are; and HOW they will affect you in your desire to |