Crazy is good.
Crazy is good.
There are so many reasons why homeownership makes sense, financially. Today I wanted to touch on the emotional or ‘real’ reasons that many Americans strive to become homeowners. 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.
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.
It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.
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.
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:
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?
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.
Photo courtesy of Pinterest
The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are:
In a recent article, John Taylor, CEO of the National Community Reinvestment Coalition, explained that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth:
“We traditionally have been huge supporters of homeownership. We see it as a way to provide stability for households but also as an asset-building strategy. If you continue to be a renter, locked out of the homeownership arena, increasingly those things are further and further out of reach. They’re joined at the hip. They perpetuate each other.”
Does owning your home really create a more stable environment for your family? A survey of property managers conducted by rent.com last month disclosed two reasons tenants should feel less stable with their housing situation:
We can see from these survey results that renting will provide anything but a stable environment in the near future.
Homeowners enjoy a more stable environment and at the same time are given the opportunity to build their family’s net worth.
Within the next five years, Baby Boomers are projected to have the largest household growth of any other generation during that same time period, according to the Joint Center for Housing Studies of Harvard. Let’s take a look at why…
In a recent Merrill Lynch study, “Home in Retirement: More Freedom, New Choices” they surveyed nearly 6,000 adults ages 21 and older about housing.
Throughout our lives, there are often responsibilities that dictate where we live. Whether being in the best school district for our children, being close to our jobs, or some other factor is preventing a move, the study found that there is a substantial shift that takes place at age 61.
The study refers to this change as “Crossing the Freedom Threshold”. When where you live is no longer determined by responsibilities, but rather a freedom to live wherever you like. (see the chart below)
As one participant in the study stated:
“In retirement, you have the chance to live anywhere you want. Or you can just stay where you are. There hasn’t been another time in life when we’ve had that kind of freedom.”
According to the study, “an estimated 4.2 million retirees moved into a new home last year alone.” Two-thirds of retirees say that they are likely to move at least once during retirement.
The top reason to relocate cited was “wanting to be closer to family” at 29%, a close second was “wanting to reduce home expenses”. See the chart below for the top 6 reasons broken down.
There is a common misconception that as retirees find themselves with fewer children at home, they will instantly desire a smaller home to maintain. While that may be the case for half of those surveyed, the study found that three in ten decide to actually upsize to a larger home.
Some choose to buy a home in a desirable destination with extra space for large family vacations, reunions, extended visits, or to allow other family members to move in with them.
“Retirees often find their homes become places for family to come together and reconnect, particularly during holidays or summer vacations.”
If your housing needs have changed or are about to change, call Linda so I can help with deciding your next step.
Selling real estate for me is a passion. I love my work.
One of the most important accomplishments for me was to establish, WHY I do what I do, in my own words. What motivates me every day to come to work with a sense of pride as I help buyers and sellers realize their dreams?
When I started talking about what individually drives me, I realized that my thoughts all aligned on a few main themes:
I believe that every family should feel confident whey buying and selling a home.
I know that as long as I keep these thoughts in the forefront of all that I do then I will be able to provide the best experience for my clients.
And that makes me happy!
Here’s What a List of “Home Goals” Should Look Like – Courtesy: Apartment Therapy