The Difference An Hour Makes

The Difference An Hour Makes

Some Highlights:

  • Sunday, March 13th, we “Spring Forward” one hour for Daylight Savings Time (except for our friends in HI & AZ).
  • Every hour in the United States, 624 homes will sell and 118 homes will regain positive equity.
  • The median home value will also increase each hour in the United States by $1.84.
Home Is Where the Heart Is

Home Is Where the Heart Is

Yesterday, I discussed the reasons why homeownership makes sense financially. Today I wanted to touch on the emotional or ‘real’ reasons that many of us strive to become homeowners. After all, home is where the heart is!

The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.

The top 4 reasons to own a home cited by respondents were not financial.

1. It means having a good place to raise children & provide them with a good education

From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase. 

2. You have a physical structure where you & your family feel safe

It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.

3. It allows you to have more space for your family

Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list. 

4. It gives you control over what you do with your living space, like renovations and updates

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?

The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents: 

5. Owning a home is a good way to build up wealth that can be passed along to my family

Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future? 

Bottom Line

Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home. In other words: how do you feel about where you live, and what more do you want?

How to Create Real Family Wealth

How to Create Real Family Wealth

Rebuilding Family Wealth

Since 2008 some of those that were hit hard by the financial crisis have repaired their credit and are ready to take on homeownership again to begin rebuilding their family wealth.

Many of you are understandably trepidatious about tying up your family’s money and time in real estate again. However, homeownership is still the best path to building personal wealth. The trick now is using the lessons of the past to avoid another disaster, and to remember a few key points:

  • Buying a home is often the biggest financial decision that any family will make.
  • The average net worth of a homeowner is 45x greater than that of a renter.
  • Homeownership puts your housing costs to work for you.
Benefits of Owning a Home For Your Children

Benefits of Owning a Home For Your Children

by Travis Rougier

Home Ownership

I came across this information the other day and thought I’d look at it a little bit more deeply. While I’d heard similar things before and sort of self-acknowledged it myself, I never expected the results to be so skewed in favor of home ownership.

Synopsis

I promise that below you will find links to the various studies and articles that these conclusions I provide come from. In my searches I found data that supported all the claims on the infographic, and a declaration from a study in 1997 that claimed, “Home ownership compared to renting leads to a 13 to 23 percent higher-quality home environment”. The study goes on to describe in extreme detail what that home environment consists of and what higher-quality is defined as. I also found that daughters of homeowners have a 27% lower probability of having children of their own as teenagers than children of renters. Furthermore, while the high school and college graduation rates are fantastic, they only begin to tell of the benefits that follow of having completed those milestones. We all have seen THOSE studies on how economically better off people are with education under their belt.

Some of the studies had theories on why these positive benefits occur. The theories include the belief that homeowners are more likely to make improvements to their homes. Improvements to create better play areas, reduce any hazards, put in more quality lighting, and provide more intellectual stimuli such as magazine subscriptions. Other studies conclude that the experience of hiring tradespeople and laborers, as well as budgeting for various home repairs can help homeowners to develop management skills which can also be used to improve their parenting. Another theory suggested that owning a home simply creates a more stable environment by proxy, since homeowners typically move less frequently than renters.

Ask Questions, Become Informed

Some interesting data and theories. I did find some studies that attempted to refute the data, but their conclusions were muddled at best. In the end the suggestions of these other studies was that we need to improve schools and communities to mimic the benefits of home ownership. In the words of LeVar Burton “but you don’t have to take my word for it.” My sources are below and as usual I urge you to learn more. Let me know what you think of this information in the comments.

Sources

http://econweb.ucsd.edu/~miwhite/gw-jue-reprint.pdf This is the 1997 study that kicked off the modern-day theorizing of this topic.
http://www.realtor.org/sites/default/files/social-benefits-of-stable-housing-2012-04.pdf
http://researchnews.osu.edu/archive/chldhome.htm
http://www.nhc.org/media/files/Insights_Home_children_final.pdf
http://mba.informz.net/MBA/data/images/rihapapereffectsofhomeownershiponchildren102212.pdf