The way most of the world builds a home
The early settlers in America joined together to help each other. They would build homes that they could afford without contracting debt. They would start small, then add to the structure as time went on and they could afford additional expense. The structures were simple but adequate and families were raised. Most of the world follows this path.
My father grew up with 15 brothers and sisters in a little two-room home. They worked hard and all turned out fine. My father's assignment was to get up early every morning and start the fire in the wood stove to heat the home.
The way we do in America
Well, you know how we do it now in America. Everybody finds the maximum debt they can carry, then buy the biggest house that they are allowed. They would buy bigger if they could. Then they generally yearn for (covet?) the things they could not borrow enough to obtain. There is little patience to wait till later, or until something can be paid for in cash without going into debt.
- We have been led to believe that we should be able to have things we cannot afford.
- Home prices have gotten out of control. The average individual cannot afford the average home.
- Means have been given us to assume large debts to pay for these things.
- We work our entire lives to pay interest on a large debt
- The money we pay interest on never actually existed before we 'borrowed' it.
- It would be nice to have an alternative to going into long-term debt which amounts to slavery working your life for someone else.
A Solution
An Old Answer
Looking at a different approach, if a young couple started with a simple home that they could pay for and build with a little help, they are able to keep the earnings from their work. They can apply those each year to expand and improve their home. In ten years they can spend the same amount of money on their home and it will provide approximately the same home that they would have purchased earlier, but it will be completely paid for, relatively new, and they can keep the earnings from their labors for the next twenty years and more, which amounts to most of their life.
Reducing Construction Costs
Every step and component of a house was examined to find the cheapest way to produce it or to even eliminate it if possible.
All the skilled trades were eliminated except for five: plumbing, electrical, gas line, countertops and carpet laying.
The construction process is simplified so that the owner with a few friends can build the structure in about three weeks. If the owner wants to hire the work done, he can employ unskilled labor instead of paying a premium for specialized skills.
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