A Generation’s Family Wealth at Stake

A Generation’s Family Wealth at Stake

by The KCM Crew on January 6, 2014 in KCM Updates

Collectively, Gen X and Gen Y generations along with the Baby Boomers lost trillions of dollars in net worth over the last seven years as a result of the housing collapse. Homeowners’ net worth is back to being 30 times greater than that of renters as the housing market recovers and home values increase. However, average family net worth is still not at the level it was prior to the crisis.

We must make sure that future generations are better informed regarding housing in order not to repeat what happened.

The Millennial generation has a decision to make as the economy improves and they begin to move out of their parents’ home and move into living space of their own. Should they rent or should they own? Before they make that decision, they should know enough to make an informed decision.

RENTING

Some think that renting will be less expensive than purchasing. They should realize that Shaun Donovan, Secretary of the Housing & Urban Development Agency, recently said:

"We are in the midst of the worst rental affordability crisis that this country has known."

At the same time, Christopher Herbert, Research Director at the Joint Center for Housing Studies at Harvard University, revealed that cost of renting is about to increase significantly:

“Well, I think it’s a basic question of supply and demand. When you have that many more renters coming into the market looking for housing, and the supply of housing isn’t responding as quickly as it might, that’s going to push rents up, even if incomes are low.”

OWNING

Not every young adult is prepared to own their own home. However, those that are should realize home prices and mortgage interest rates will probably both continue to rise as we move through 2014.

The opinion of the 100+ experts who participate in the Home Price Expectation Survey is that home values will increase by approximately 4% over the next twelve months and by over 25% over the next five years. The entities that project future mortgage rates see them increasing by almost a full percentage point by the end of the year.

This means that the median priced home in the country will ‘cost’ a buyer almost $200 more a month by this time next year. That will be an additional $2,000 paid annually by the purchaser; about $60,000 over the life of a 30 year mortgage.

Bottom Line

Several generations were the victim of falling prices over the last seven years. Let’s make sure that Millennials are not the victim of rising prices over the next seven years because they unnecessarily delayed their purchasing decision. Call us today to get your new home www.247realtyservice.com

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RE/MAX CEO Margaret Kelly on CNBC Squawk Box

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Homes in Winding River are available now. It is not uncommon for homes to be under contract before they are finished so please call me now if you are interested in buying your new home. If you have more questions we can go through the home with WH Gross Designer @Diane Maurer

Come one and all and share the Christmas experience on so many levels.

Come one and all and share the Christmas experience on so many levels.

On Friday night December 20, 2013, members from the Interact Club and Beta Club will be holding the Christmas Experience movie night at the soccer field off Kingsbay Road from 6:00 to 8:00.  The movie showing will be “Elf”.  There will be no charge for admission, but people attending will be asked to donate to the Red Cross relief fund for the Philippines.  There will be teachers present to chaperon.  Come One and All the whole family is invited to this wonderful Christmas Experience. 

Dress warmly and Enjoy!

Looking for a new retirement home?

Building a New Home At Winding River Community.

Buying New Makes Sense

One quick glance at today’s headlines, and it’s no wonder that, as concerned consumers, we’re pinching pennies more than ever. In a survey conducted by HSBC Bank USA, 64 percent of us plan to cut unnecessary spending this year. And, in a similar survey by Discover Financial Services, about half of consumers plan to cut down on such non-essential spending as dinners out and movies – even remodeling.

Still, when it comes to buying a house – something that many consumers are doing because of the many good deals to be had in a slow market – most of us prefer new. Even better, buying a new home also makes good financial sense. New homes offer countless advantages for consumers when it comes to saving money. Perhaps the biggest plus is that, since they’re brand-new, the maintenance headaches that often accompany maintenance – as with older homes – simply don’t exist, and won’t for a while.

New homes also use the latest in whole-house systems, like heating and air conditioning, so they’re not likely to break down, saving consumers money. They’re also more energy-efficient, which is also good for saving lots of green. Speaking of green, with interest rates that are still at historic lows (at or even below 4% for a 30-year fixed mortgage for well-qualified buyers), consumers can also save money on new home mortgages. And, since mortgage interest and real estate taxes are deductible, it’s another way to save money by buying a new home, especially when it comes to tax time.

There’s a saying that when you buy a pre-owned home, you’re buying someone else’s vision of a home, and that’s true. Even if that “vision” involved avocado green counters, white laminate floors in the kitchen and neon Hollywood-style lighting in the bathroom. Today’s homebuilders are offering the latest in popular choices at up-to-the-minute design centers that allow consumers to choose from hardwood flooring to cabinetry, fixtures to lighting – and everything in between.

With a new home, the sky’s the limit when it comes to design choices – and they’re all yours. New homebuyers end up with a house that’s perfectly suited for their needs. Buying new means also adding elements as your home is built – the kind of custom features that would cost far more if they were added after the fact. Consider the cost of such finished spaces as game rooms or media rooms, or such extras as fireplaces and built-in microwave ovens.

Any builder will tell you that it’s much less expensive to choose these kinds of options up-front. In the end, buying new just makes more sense: less worries about maintenance, lower interest rates on mortgages, and design choices that fit your lifestyle. And who doesn't want that?

New model homes almost ready to move in.

There are two new spec homes almost ready for occupation. Contact me to day so you can have the colors of your choice and any other details custom to your taste. Here is a finished home similar to the ones being built today.  What a great Christmas present to your family.

Start Fresh Buy New

Search New Homes

Start Fresh. Buy New. is an educational resource supported by over 30 of the nation’s largest homebuilders. Explore the interactive tiles in this link to discover how the fresh start of a truly new home can save you money and enhance your life.