Home Ownership – What’s in it for You?

Owning a home is likely the biggest investment you’ll make in your lifetime (unless Junior heads to Harvard, but I can’t help you there, folks), and it isn’t without risks. If you are a longtime renter, a recent fledgling renting after leaving the nest, or maybe you’ve returned to renting after selling a property, it’s worth taking a look at the benefits of buying a home. Sometimes renting makes sense, but it pays to know what you are missing before you sign or extend your lease. 

Sky Is Blue

According to a 2013 survey conducted by Realtor.com:

  • 88% of homeowners report that owning a home has been a positive experience.
  • A homeowner’s net worth is 34 times that of a renter, on average. 
  • Most homeowners (95%) and a majority of renters (72%) believe that over a period of years, it makes more sense to own a home than to rent. 
  • 77% of homeowners say owning a home helps them achieve long-term financial goals. (Maybe Junior really can go to Harvard, after all!)
  • Median list prices in Metro Denver were up 21.3% year over year from October 2013 through October 2014.  
  • Home owners are pretty cool people. They are: 
    • 16% more likely to belong to parent-teacher organizations.
    • 1.3 x more likely to read a newspaper
    • 28% more likely to repair and improve their home
    • 28% more likely to vote (after they finish up those repairs, that is)
    • 11% more likely to know who represents them in Congress
  • In addition to personal benefits, home ownership benefits the nation:
    • For every two homes purchased, the economy gains a job.
    • Housing accounts for more than 15% of the US GDP, and is a key economic driver in the US.
    • For each home purchase worth $173k, approximately $60,000 in direct and indirect spending occurs in the economy.

According to this survey, 78% of homeowners consider now a good time to buy a home, as do 58% of renters. But what about you? Drop a line or pick up the phone to let me know what you think. Whether you’re ready to make a move, or just want to ponder your potential as a homeowner, I’m here to talk.

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate

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Rentals are Scarce – is it Time to Buy?

Metro Denver apartment vacancies dropped to 3.9 percent in the third quarter, the second-lowest recorded rate.

Source: Denver Post

no-vacancy

What does this mean for you, if you happen to be a renter or potential renter? Rents are rising, and chances are good that even in a seller’s market, with current interest rates *the monthly payment you make on a mortgage for your own home could be less than what you would pay for a comparable rental home.

Winter is coming, and the colder months offer benefits you might not expect as a home buyer:

  • Experience has taught me that Sellers who list their home over the winter are serious about it. They’re not willing to wait until the busy spring season, and their state of motivation can absolutely work in the Buyer’s favor.
  • Even in the hottest market, home prices tend to cool a bit with winter temperatures. Buying a home in the winter could get you more bang for your buck, or allow you to get into a neighborhood you didn’t think you could afford.
  • Sellers love a bidding war – but this scenario is generally not in the Buyer’s favor. With fewer Buyers searching the marketplace during the winter selling season, you’ll have less competition for your purchase.

If you’ve been on the fence about making a home purchase, pick up the phone. I’m happy to chat with you about the market in your desired neighborhood and what your options are in the Denver marketplace.

Jack Meyers
jackestate@aol.com
303.263.3050
Twitter: @jackestate

 

 

 

*Mortgage terms vary, consult a licensed mortgage professional for specific information.