27
Jul
By First Rate Financial Group
Mortgage

Homeownership And The American Dream: Is It Changing?

Homeownership And The American Dream: Is It Changing?There are a few parts of American culture that people believe define this country. One element is the dream of homeownership. There is a strong belief that people need a place to call home. Therefore, since the dawn of this country, the government has tried to incentivize people to purchase a home.

At the same time, there are some people who are looking at the younger generation, wondering if this American Dream is starting to change. Is homeownership still a part of the American Dream?

Americans Still Believe In The Idea Of Homeownership

Hard work and owning a home appear to be inseparable. There is still a belief that as long as people work hard and save money, they can fulfill the American Dream by buying a home. Real estate professionals regularly take surveys that show that people still want to be a homeowner for the sake of owning a home. While it is true that owning a home provides more control and creates investment opportunities, owning a home still has an allure to people that is undeniable.

Millennials Want To Own A Home As Well

Millennials appear to believe most strongly in owning a home, indicating that this is still a part of the American Dream. Even though some people thought that millennials were simply going to rent forever, this is not the case. The reality is that many young adults have not purchased a home because they could not afford one. Student loans and a lack of wage growth compared to housing increases simply made it harder. With interest rates lower than they ever have been in the past, many young adults are ready to make the jump to purchase a home.

Homeownership Is Still A Part Of The American Dream

Ultimately, many millennials simply put off the idea of getting married and having children, so they put off the idea of homeownership as well. Now that this milestone has arrived, there are many young adults who are looking to purchase a home for the first time. This indicates that owning a home is still a key part of the American Dream.

23
Jul
By First Rate Financial Group
Mortgage

Taking A Closer Look At Affordability: Renting And Buying

Taking A Closer Look At Affordability: Renting And BuyingThere are many people who are looking at the housing market wondering if now is the time to make the jump from renting to owning. At the same time, is it more affordable to rent a home? Or, is it a smarter move to buy a home? Even though many people like the comfort of renting because it is someone else’s problem if something goes wrong, waiting too long to purchase a home could be costly. Here are a few of the most important points you need to keep in mind when it comes to renting versus buying a home.

Renters Spend A Higher Percentage Of Their Income On Housing

First, renters usually put a higher percentage of their income toward housing than homeowners. When looking at the numbers, people may believe that the percentage is higher for renters purely because people who own homes make more money; however, this is not necessarily the case. People who rent still spend a greater percentage of their monthly income on housing than people who own a home.

Renters Often Have Trouble Investing In Other Assets

One of the major advantages of owning a home is that it is going to appreciate over time. Not only is a house an investment, but because homeowners spend less of their money on housing, they have money to invest in other assets. For example, someone who spends a lot of money on rent might not be able to invest in retirement accounts, such as a 401k. Homeowners are not only building equity in their homes but also investing money elsewhere.

Rent Goes Up While Mortgages Stay The Same

A lot of homeowners decide to take out a 30-year fixed mortgage, which means that their mortgage payments are going to stay the same throughout the life of the loan. Renters are more vulnerable to cost increases. Whenever someone renews a lease, rent payments usually go up. Therefore, this projects vastly different economic futures for homeowners versus renters. With a home loan, the only expenses that might go up are taxes and insurance. In contrast, renters are subject to the supply and demand laws of the rental market.

Now might be the time to make the jump to homeownership.

17
Jun
By First Rate Financial Group
Mortgage

How To Tell If A Home Has Been Well-Maintained

How To Tell If A Home Has Been Well-MaintainedAs a homebuyer, your real estate agent will do their best bring you to see homes that meet the criteria you asked for. However, there’s no guarantee that a home will have a history of being properly cared for.

Your real estate agent can choose the homes you see, but they have no control over the property owner’s homeownership habits.

Why Home Maintenance Matters

Home maintenance should matter to you as a homebuyer and later on as a homeowner. A home needs consistent and proper maintenance in order to run efficiently, and that doesn’t only apply to moving parts like the HVAC system. If a home isn’t looked after, it begins to run down and then break down.

Just as a poorly maintained vehicle will eventually strand its owner on the side of the road, a poorly maintained home will eventually fail to properly house its occupants.

How To Tell If A Home Has Been Well-Maintained

A home that hasn’t been cared for will easily give up its secrets to a discerning homebuyer. Conversely, you can tell if a home has been cherished and well-maintained over the years.

  • Home maintenance warranties in place would be a selling feature and indicates the owner understands the power of proactive maintenance.
  • Solid, quality flooring indicates that the owner has shored up the subfloor beneath tile, removed carpet spills expeditiously and replaced cracked, peeling or missing planks or tiles.
  • No signs of basement water damage may signify that owner has installed sufficient sump pump or other drainage solutions, applied basement waterproofing or taken other steps to ensure a dry basement.
  • Finished basement shows that owner has taken care to improve the home where possible and that the owner trusts their basement possessions will be safe from water damage.
  • Straight roof lines mean that there is likely no sagging roof problem that hasn’t already been addressed.
  • Mature, healthy plantings are a sign that the owner has given thought and care to the surrounding landscape over a long period of time.
  • Sound gutters in good condition show that the owner has taken steps to ensure proper roof drainage to water damage.

These are all positive signs for a prospective homebuyer. Of course, you must still pay attention to the home inspection report. But odds are if you see all these signs, you’re probably looking at a new home that will serve your needs for many years to come.