June 7, 2019 rummy

For years now, real estate has been at the top of many American’s lists of the preferred investment format. With constant irregularities, market fluctuations, and other influential factors the gap varies indicating the number of Americans who still trust in real estate to be a solid investment. For the sixth year in a row, real estate has come out on top as the best long-term investment! That has not always been the case. Gallup explains: “Between 2008 and 2010, covering most of the Great Recession period that saw plummeting home and stock values, Americans were as likely to name savings…

June 5, 2019 rummy

Recent studies show a new trend in the buyers market. There is a slow build-up of demand for multigenerational homes. This good news for homeowners thinking of selling their home this season. The average life expectancy in the U.S. is 78 years old! As a result, 41% of Americans in the market are searching for a home that can accommodate a multigenerational family. The graph below shows the number of people by generation that purchased a multigenerational home because they will either be taking care of an aging parent or they just want to spend time together. Of those buyers,…

May 28, 2019 rummy

As we have shared countless times before, down payments need not be 20% all the time. Depending on your situation and geographical location, the percentage required could drop significantly. But a lot of buyers still believe that they need to save 20% as a down payment and here’s why. 1. Your interest rate will be lower. Putting down a 20% down payment vs. a 3-5% down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower…

May 22, 2019 rummy

Majority of home buyers remain undeterred of news and rumors about a possible recession creeping in. Although a lot can be said about the fact that inconsistencies abound in almost all facets of news, we are more inclined to talk about the good things we have observed from the buyers market recently. “Nearly 70 percent of home shoppers this spring think the U.S. will enter a recession in the next three years, but that hasn’t stopped them from trying to close on a home…Despite the fact that they foresee an economic downturn, they generally expressed confidence that a future recession…

May 9, 2019 rummy

To many first time homebuyers, the down payment is the biggest obstacle to tackle. For those who plan ahead and would like to save for their down payment, you might find this break down handy. Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense. By determining the percentage of income spent renting in each state,…

April 5, 2019 rummy

We have discussed time and again the advantages of owning a home over renting, and not only has the majority of Americans agree to these, but surveys say the same things too. Money spent on a mortgage is money well spent and help build one’s financial wealth. The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation. For a homeowner…