“Harvard: Why Owning A Home Makes Sense Financially”

Harvard: Why Owning A Home Makes Sense Financially | Keeping Current Matters

Eric Belsky, the Managing Director of the Joint Center of Housing Studies at Harvard University expanded on the top 5 financial benefits of homeownership in his paper –The Dream Lives On: the Future of Homeownership in America.

Here are the five reasons, each followed by an excerpt from the study: 

1.) Housing is typically the one leveraged investment available.

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

2.) You're paying for housing whether you own or rent.

“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.” 

3.) Owning is usually a form of “forced savings”.

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

4.) There are substantial tax benefits to owning.

“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”

5.) Owning is a hedge against inflation.

“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”

Bottom Line

We realize that homeownership makes sense for many Americans for an assortment of social and family reasons. It also makes sense financially. If you are considering a purchase this year, contact a local professional who can help evaluate your ability to do so.

 


Posted on February 17, 2016 at 10:14 pm
Bradley Mulliner | Posted in Buying/Selling Tips, clients, Helpful Articles, new home, new home owners, Real Estate Activity |

What is the forecast like?

Holding Firm Against the Tide | Realtor Magazine

 

Steady U.S. economic growth will help lift home sales moderately in 2016, but persistent inventory shortages will continue to put upward pressure on prices, holding back first-time buyers. That’s a thumbnail of the year ahead for home sales, according to NAR Chief Economist Lawrence Yun.

Home buyers are difinately feeling the pinch as they are trying to find homes to purchase.  Portland and its surrounding areas found the lowest months of inventory in the month of Decmeber.  What is the forecast like for 2016? click on this article for a glimpse of whats to come in 2016.

http://realtormag.realtor.org/news-and-commentary/economy/article/2016/01/holding-firm-aga


Posted on February 2, 2016 at 12:15 am
Bradley Mulliner | Posted in Uncategorized |

Did You Know?

https://bcmthekeytoyournewhome.wordpress.com/2016/01/06/did-you-know

"For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. "

As a Realtor in the Portland and SW Washington markets, I have realized the need to help get new buyers educated in the process of buying a home. In a market that is growing as rapidly as our's is, first time home  buyers need to know the ins and outs before even looking for a home.

This article discusses this very topic.

 The ‘Missing Link’ in Housing

Daily Real Estate News | Tuesday, January 05, 2016

 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®.  

As a Realtor in the Portland and SW Washington markets, I have realized the need to help get new buyers educated in the process of buying a home. In a market that is growing as rapidly as our's is, first time home  buyers need to know the ins and outs before even looking for a home.

This article discusses this very topic.

 The ‘Missing Link’ in Housing

Daily Real Estate News | Tuesday, January 05, 2016

 

For years, first-time home buyers have made up around 40 percent of all buyers. However, since the recession, this percentage has been shrinking. In 2015, they made up just under 30 percent of the market share, according to the National Association of REALTORS®. 

Read moreDos and Don'ts for a First-Time Home Buyer

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of home ownership is stalled. Current home owners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement. 

“In terms of the real-estate recovery, the missing link is first-time home buyers,” says Rob Chrane, founder and CEO of Down Payment Resource. “They’ve been at record lows. Part of it is legitimate reasons. Part of it is just ignorance.”

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move. 

But housing analysts say that the real estate industry has an important part in bringing them into home ownership by driving home the financial benefits and teaching them about ways to make homeownership possible.

“Ignorance about the process, concern about the economic outlook, and some skepticism about ownership are all hobbling the return of first-timers,” according to a recent article by MarketWatch. 

Only 23 percent from Fannie Mae’s survey said they were familiar with low-down payment programs, such as those offered by the Federal Housing Administration. Consumers believed on average that they need 16 percent for a down payment in order to qualify for a mortgage, according to the survey. Lower-educated and lower-income consumers, renters, African-Americans, and seniors were more likely to assume they needed a higher down payment to qualify for a mortgage.

But in reality, homes can be purchased with as little as a 3 percent down payment. Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation slightly, say housing analysts. 

Chrane urges the real estate industry to educate would-be buyers on the possibilities to home ownership. 

“There are more options out there than they realize, and they really need to look into them before they give up,” says Chrane. 

Source: “Why First-Time Home Buyers Are Staying on the Sidelines,” MarketWatch (Dec. 31, 2015)

If you would like to attend my home buyers seminar on January 12,2016 please contact me at http://bradmulliner.com/contact-me/.

The decrease of first-time home buyers will have broad economic implications, housing analysts say. Without first-time home buyers, an entire cycle of home ownership is stalled. Current home owners are usually unable to sell their homes and move up. And without move-up transactions, many older people can’t sell and downsize for retirement. 

“In terms of the real-estate recovery, the missing link is first-time home buyers,” says Rob Chrane, founder and CEO of Down Payment Resource. “They’ve been at record lows. Part of it is legitimate reasons. Part of it is just ignorance.”

It’s not that millennials don’t show an interest in home ownership: according to a survey conducted by Fannie Mae, 56 percent of respondents between the ages of 18 and 34 plan to buy a home next time they move. 

But housing analysts say that the real estate industry has an important part in bringing them into home ownership by driving home the financial benefits and teaching them about ways to make homeownership possible.

“Ignorance about the process, concern about the economic outlook, and some skepticism about ownership are all hobbling the return of first-timers,” according to a recent article by MarketWatch. 

Only 23 percent from Fannie Mae’s survey said they were familiar with low-down payment programs, such as those offered by the Federal Housing Administration. Consumers believed on average that they need 16 percent for a down payment in order to qualify for a mortgage, according to the survey. Lower-educated and lower-income consumers, renters, African-Americans, and seniors were more likely to assume they needed a higher down payment to qualify for a mortgage.

But in reality, homes can be purchased with as little as a 3 percent down payment. Rules enacted in 2015 that decreased the amount of mortgage insurance borrowers must pay on FHA loans and Fannie Mae and Freddie Mac lowering down payment minimums may have boosted first-time participation slightly, say housing analysts. 

Chrane urges the real estate industry to educate would-be buyers on the possibilities to home ownership. 

“There are more options out there than they realize, and they really need to look into them before they give up,” says Chrane. 

Source: “Why First-Time Home Buyers Are Staying on the Sidelines,” MarketWatch (Dec. 31, 2015)

If you would like to attend my home buyers seminar on January 12,2016 please contact me at http://bradmulliner.com/contact-me/.

 


Posted on January 6, 2016 at 7:37 pm
Bradley Mulliner | Posted in Buying/Selling Tips, Helpful Articles | Tagged , , , ,

Portland homes selling in less than a month in Q3.

Portland homes selling in less than a month in Q3.

Still not sure whether or not it a good time to sell your home?  Homes are definitely selling quickly as long as they are price right. Yes this is still a sellers market in most areas around the Portland market and with the lack of inventory it appears that it is going to remain this way for a while.

SEATTLENov. 12, 2015 /PRNewswire/ — Matthew GardnerWindermere Real Estate Chief Economist, found Portland homes were on the market an average for just 27 days in the third quarter of 2015. This represents a drop in 10 days from the second quarter. Multnomah and Washington Counties also saw homes sell in less than a month.

“The average time it took to sell a home in the region was 92 days, with thePortland market in particular dropping from 37 to 27 days. This shows that the hot Portland economy is causing the demand to keep supply flying off the shelves,” said Gardner. He added one caveat, “There was a decline in state employment in September and the unemployment rate did rise, but I do not see this as a trend so much as a temporary blip.”

Looking at how the situation compares to the same time last year, the supply shortage drove home prices 6.1 percent higher year-over-year to $309,565. “What’s more impressive, sales activity rose by 21.6 percent when compared to the third quarter of 2014, exceeding the 20.9 percent year-over-year growth rate that we saw in the second quarter,” said Gardner.

As a result, Gardner believes that the housing market has tipped even further in favor of sellers. For Portland area buyers, this means it’s more important than ever to do the prep work to be able to move fast when buyers find a home they wish to buy:

  • Get pre-approved for a mortgage in advance (unless making an all-cash offer), and be ready to document the funds to be used for a down payment.
  • Retain an experienced buyer’s agent, who knows the local area and whom you trust. Go with them to see properties within 24-48 hours of listing.
  • Have advance discussions on what to write into offers: escalation clauses, quickness of home inspection, and even offering to rent the home back to the seller after the sale to give them more time to move. If the buyers and their agent have already confirmed those decisions, they can move faster in writing up the offer when the time comes.

Matthew Gardner joined Windermere Real Estate in July 2015 as its national Chief Economist with over 25 years of professional experience both in the U.S. and U.K.  Gardner has watched the Oregon economy and housing market for his entire career, specializing in residential market analysis, commercial/industrial market analysis, financial analysis, and land use and regional economics.

To read more from the third quarter Gardner Report and about Matthew Gardner, visit http://www.windermere.com/blogs/.

About Windermere Real Estate

Windermere Real Estate is ranked the largest regional real estate company in the Western U.S. with over 300 offices and 7,000 agents serving communities in AlaskaArizonaCaliforniaColoradoHawaiiIdaho,MontanaNevadaOregonUtahWashington, and Mexico. Last year, Windermere closed over 77,000 sides for more than $27 billion in dollar volume. The Windermere family has a proud heritage of serving our neighbors via the Windermere Foundation, which funds services for low-income and homeless families. Since 1989, the Windermere Foundation has contributed more than 30 million dollars towards improving lives in the communities where we live and work. For more information, visithttp://www.windermere.com.

If you are a looking at buying a home, in this article there are some great tips that you should do the make the process go smoother, or you can visit http://bradmulliner.com/buying-and-selling-tips/ for more information.

Photo – http://photos.prnewswire.com/prnh/20151111/286564

SOURCE Windermere Real Estate

RELATED LINKS

http://www.windermere.com

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Posted on November 13, 2015 at 7:27 pm
Bradley Mulliner | Posted in Buying/Selling Tips, clients, Helpful Articles, new home, new home owners, Real Estate Activity, Uncategorized | Tagged , , , ,

Guidelines for FHA condo certification: “Know before you Owe” home buyer tips

Guidelines for FHA condo certification: “Know before you Owe” home buyer tips.

As I am out helping buyers and sellers, there are many questions that come up when researching condos. This article is a great tool to use and understand how a condo becomes FHA certified, http://fhareview.com/the-guidlines-fhaapprovalguidlines/. This is just one of the many web sights that you can go to to get information regarding condo certifications.

If you know a specific condo and you want to check to see if it is certified you can always go to https://entp.hud.gov/idapp/html/condlook.cfm. Knowing if your condo that you are interested in buying before you go and see it may save you time if it is not FHA certified.

As always “Know before you Owe” and do your own due diligence before buying a new home.

For more helpful articles on buying or selling your home please visit https://wordpress.com/stats/day/bcmthekeytoyournewhome.wordpress.com


Posted on November 4, 2015 at 10:23 pm
Bradley Mulliner | Posted in Buying/Selling Tips | Tagged , , , ,

Exciting NEWS!!!

Wow!  Do I have something cool to share!  My son & I have been working on an app to make it easier for you to keep in touch.  This app is easy to download & you will be able to contect with me anytime at an instant.  Go download your Bradley Mulliner app today!!!!  Best of all…its free!  


Posted on October 23, 2015 at 5:11 pm
Bradley Mulliner | Posted in clients |

Getting the keys to your new home.

This is always an exciting time for a new home owner. One thing that I always enjoy watching is the excitement on the faces of a new home owner.  I always let the client open the door and walk through first.  Their eyes light up as if they are seeing their home for the  for the first time all over again.  I love to here the remarks about the changes that they are going to make, watching them open every cupboard, going through every room, turning on every light in the house even in the middle of the afternoon.  I was able to experience again yesterday with my newest home owners, what an enjoyable experience.


Posted on September 25, 2015 at 6:02 pm
Bradley Mulliner | Posted in clients, new home, new home owners | Tagged , , , ,

The importance of properly pricing you home.

When selling you home, obviously you want to get as much as you can for it. Properly pricing your home is at the utmost importance. According to the 2015 REALTORS® Confidence Index Survey, more than half of all  homes that  sold were discounted anywhere from 1 to 11 percent.  Continue reading  the entire article at http://realtormag.realtor.org/daily-news/2015/07/14/more-half-homes-sold-discount.

 

 

 


Posted on July 22, 2015 at 4:31 pm
Bradley Mulliner | Posted in Helpful Articles | Tagged , , , ,

Can a Bill I Never Received Wreck My Home-Buying Chances?

In the early stages of getting prepared to purchase you new home, you will at some point need to look at your credit history.  This is a great article with some different web sights that can give so insight to this situation. This is espcially helpful if it is your first time buying a home as you may have several questions to how the process works.

http://www.realtor.com/advice/finance/can-a-bill-i-never-received-wreck-my-home-buying-chances/?identityID=54e66fd2c43087d8c30002ea&MID=2015_0710_WeeklyNL&RID=2884743822&cid=eml-2015-0703-WeeklyNL-blog_2_credit_menace-blogs_finance.

If you are a first time buyer and have questions about the home buying process, feel free to contact me at bradleyc@windermere.com or www.bradmulliner.com. I would love to answer your questions.


Posted on July 13, 2015 at 4:36 pm
Bradley Mulliner | Posted in Buying/Selling Tips |

Pending Home Sales For May

According to the National Association of Realtors® Pending home sales continued to rise in May and are now at their highest level in over nine years. http://www.realtor.org/news-releases/2015/06/pending-home-sales-maintain-momentum-in-may​


Posted on July 6, 2015 at 4:42 pm
Bradley Mulliner | Posted in Real Estate Activity | Tagged , ,