READY TO BUY?
#1 Financial Benefit of Homeownership: Family Wealth & Stability
While growing up, we were taught by our parents and grandparents that owning a home is a financially savvy move. They explained how a mortgage is like a “forced savings plan.” When you pay rent, that money is lost forever. When you make a mortgage payment, much of that money accumulates as equity in the home. So, what exactly is equity?
The equity in your home is the amount of money you can sell it for minus what you still owe on the mortgage. Every month you make a mortgage payment, and every month a portion of what you pay reduces the amount you owe. That reduction of your mortgage every month increases your equity.
A recent study by CoreLogic explained that homeowners gained substantial equity over the last twelve months, and are essentially sitting on large sums of cash in their homes. In the study, Frank Nothaft, Chief Economist for CoreLogic explained:
“The CoreLogic Home Price Index recorded a quickening of home price gains during the fourth quarter of 2019, helping to boost home equity wealth. The average family with a mortgage had a $7,300 gain in home equity during the past year, and a total of $177,000 in home equity wealth.”
For most families, their home is their largest financial asset. This increase in equity drives the net worth, or family wealth, of the homeowner. Renters are not earning that benefit. Instead, they’re building the net worth of their landlord.
Bottom Line
Home price growth will moderate during the pandemic. But once a cure is available, most experts agree that home values will again begin to appreciate at levels similar to what we’ve seen over the last several years. In the long run, our family elders will be proven correct: owning a home is a savvy financial move.
Preparing to purchase a Home
In a “business as usual” housing market and you are buying a home, one of the most important investments in most people’s lives, it is suggested that you need an experienced guide to help you navigate properly and effectively through the process. You need someone you can trust who will guide and protect you during the crucial steps of home ownership from the very thought process of purchasing. You will require a professional such as Kinniebrew Associates, Inc. who can help you determine what to offer on your dream home without paying too much or offending the seller with an extremely low offer.
In these times, at the present moment, we are in anything but a normal market.. We are amid one of the greatest health crises our nation has ever seen. The pandemic has had a dramatic impact on the journey consumers take to purchase or sell a home. To successfully navigate the landscape today, you need more than just a regular or status quo real estate agent or agency. You need a tried and proven real estate professional and an experienced navigator. Kinniebrew Associates is that professional and wants to “Earn Your Business”
This is much more than a normal real estate market.
Today, the average agent or agency might not be capable of fully satisfying your real estate needs. Our real estate experts understand how today’s marketplace and COVID-19 environment is affecting the thoughts and patterns of the buyers and sellers (ex: virtual showings, proper safety protocols, e-signing documents). You need someone who can simply and effectively explain the changes in today’s process to you and your family. You need an expert who will guarantee you make the right decision, especially in these challenging times.
The Fact is…
Hiring a professional real estate agent who understands how the economic market and the pandemic has reshaped the real estate processes is crucial right now. Let’s connect today to guarantee your journey is a safe and successful one.
Kinniebrew Associates will provide you with the necessary information and arm you with the necessary tools to become educated and confident in your decision to purchase a home for …
*You and your family
*A family member
*A vacation home
Make a timely and good offer…This is especially true in markets with a low inventory of homes for sale. It’s very common for home buyers to miss out on the first home they wish to purchase because they don’t act quickly enough. By the time they’ve made their decision, they may find that someone else has already purchased the house. Remember that your offer is very unlikely to be the only one on the table. Do what you can to ensure it’s appealing to a seller.An income producing investment property.
We will help you…
Become ready to move by helping you get pre-qualified with our trusted financing partners or provide guidance toward your own choices and options readily available to you through your personal financing affiliations you already have relationships with such as credit unions, banks, investments, and employee savings plans ( 401K or retirements). Many first-time home buyers don’t take the time to get prequalified and therefore lose time in the process.
Factor maintenance and repair costs into your buying budget. Even brand-new homes will require some work. Don’t leave yourself short and let your home deteriorate. We help you think ahead.
It’s easy to get wrapped up in your present needs, but you should also think about reselling the home before you buy. The first-time buyer expects to stay in a home between 5-10 years.
Develop your home/neighborhood wish list. Prioritize these items from most important to least.
Select where you want to live. Compile a list of three or four neighborhoods you would like to live in, taking into account nearby schools, recreational facilities, area expansion plans, and safety.
