Posts tagged ‘homeownership’

August 21, 2014

Financial Benefits of Homeownership

 

Which is a better option, renting or buying a home?  This question is difficult to answer and depends on one’s current financial situation.  However, it is important to note that homeownership does come with major financial rewards that are not applicable to renters.

 

1.) A Leveraged Investment

Owning a home allows a homeowner to increase any appreciation on the value of their home by a leveraging factor. Even a substantial 20% down payment results in a leveraging factor of 5 so that every percentage point in the value of the home is a 5% return on the equity. With the average buyer putting 10% or less down, their leveraging factor is 10 or more.  Every month the mortgage is paid, the reduction from the mortgage increases the amount of equity. Plus with equity from your home, you would be able to pay for college, retirement or other major life events.


2.) Rent or own, you are still paying

It makes a lot more sense to invest your money in something you own, than it does to pay a landlord. Homeowners pay financial institutions to reduce their own principal, while renters pay to reduce the principal for their landlord.


3.) “Forced Savings”

Owning a home tends to change the perspective many people have on saving money…spend now, save later. Owning a home means more financial responsibility, which encourages smarter saving and spending habits.

piggy

 

 

4.) Tax benefits of owning

As a homeowner, you will be able to deduct mortgage interest and property taxes from your annual income taxes. Plus capital gains (up to $250k for single filers and $500k for married couples) are excluded if you sell your home for a gain.


5.) Owning protects from inflation

Housing costs and rents tend to increase over time at a faster pace than the rate of inflation. This makes owning a home a more attractive option.


6.) Mortgage Rates

Over the past 30 years, mortgage rates have been decreasing, which means a decrease in your monthly payment.

Historic Mortgage Rates by Decade

 

Local real estate markets, your financial status, as well as personal needs and goals will all affect your housing decision. Homeownership makes sense for many people due to an assortment of personal and social reasons, but it also makes sense financially. Consult a local real estate professional to help guide you to happy and responsible living.

 

 

 

 

July 14, 2014

Homeownership Matters

Laurie and her pop during the Holidays

Laurie and her Pop at Christmas

Laurie Czaplinski, our Agent Services Director, shared her grandfather’s story with us:

My grandparents were married in 1945.  My grandfather had just served his last tour in the Navy for World War II.  One of their immediate goals, as a newly married couple, was to find a home where they could raise a family.  While in the service, my grandfather dreamed of meeting the girl of his dreams and building a home with her.  Their goal was independence and buying a house was the first step.

While talking about the home they were planning to build, my grandmother described a large kitchen where she could cook and bake.  My grandfather dreamed of a basement workshop and a yard where he could grow vegetables and lounge under a tree during the summer.

The home they built was what we would now call a bungalow.  It’s a one and half story that they built for less than $3,000.  Today it would sell for at least $130,000.  It is only a three bedroom, one and half bath but there is a lot of living square footage packed into this little home and they have used every inch of their home for the past 68 years.

As I asked him what he loves about his home he recalled all of the good times our family has shared there.  “A home is not only a place to lay your head at night.” My grandfather said to me.  He reminded me that every Thanksgiving we would pack into their finished basement and my grandmother would set up a large buffet feast for us and that my mom somehow used to be right by his side every time he opened a Coke in the basement.  He talked about the door in his workshop that has the heights of my aunts, mom and all of the grandchildren recorded, every year up until now.  He talked about the day he found his dog, “tuffy” and cat “killer”.  Then told me about the neighbors and the block parties they had.  And I remembered all of the weekend sleep overs and how he would make us ice-cream floats and “pop-pop sandwiches”.

“It doesn’t matter how big or expensive your home is, it’s the people who live there and the adventures you experience together that matter.”

This talk with my grandfather reminded me that homeownership means so much more than a roof over our head.

 

November 8, 2013

Prudential Real Estate Q3 Consumer Outlook Survey

Prudential Real Estate has released the results of its third quarter Consumer Outlook Survey indicating men and women tend to take up different tasks in the home-buying process and view homeownership through a slightly different lens. However, both say their real estate agent helped ease the decision-making process. Take a look at the infographic in this moew insight into each role in the home-buying process.

(magnifyClick to enlarge)

Q3 2013 Consumer Outlook Survey Infographic

Like this blog post? Take a look at our real estate blog categories;
Homeowners | Home Buyers | Home Sellers

August 27, 2013

INFOGRAPHIC – Confidence in the Market Jumps Sharply

Confidence in the real estate market is on the rise, and millennials still believe in the American Dream. However, there is a knowledge gap that calls for advice and guidance from real estate professionals. Consumers have their eyes on interest rates.

Prudential Real Estate Q2 2013 Consumer Outlook Survey Infographic

Prudential Real Estate, an HSF Affiliates LLC company, and Prudential Homesale Services Group released results of their second quarter Consumer Outlook Survey indicating that millennials are increasingly optimistic about residential real estate. A full 80% of respondents ages 25-34 said their perception of the housing market is “favorable” or “somewhat favorable,” representing a 9 percentage point increase from the Q1 study.

Among all respondents, the national survey also found that confidence in real estate and home values jumped sharply, reaching 83% vs. 77% in Q1 study and 73% at year-end. Confidence is highest in both South and West regions at 84%.

“Young Americans, like the majority of survey participants, are feeling much better about homeownership,” said Earl Lee, chief executive officer of HSF Affiliates LLC and president of Prudential Real Estate. “People are looking optimistically at housing for all right reasons – a place to feel secure, build a future and raise a family.”

Among all respondents, 70% said that finding the right home and community is crucial to family happiness. Millennials were even more emphatic about the emotional side of homeownership: 93% favor a home for “more space for my family,” while only 75% view it as “financial security to borrow against.”

“Consumers are mindful of the challenges faced during the real estate downturn,” added Earl Lee, CEO of HSF Affiliates LLC and president of Prudential Real Estate. “Though homeownership makes a solid, long-term investment, a home should never be considered a siding-clad ATM.”

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Mortgage and Rate Watch
On securing a mortgage loan, consumer sentiment continues reflecting the challenges people face through strict underwriting guidelines and credit-score requirements:
•    57% of respondents said securing a mortgage is more difficult than it ever was prior to the market crisis.
•    Nearly 40% said lenders are “overly cautious” when it comes to mortgage financing.
•    Anxiety and fear of losing a real estate opportunity are respondents’ main emotional challenges in seeking home financing.
•    With rates rising recently, 71% said they are encouraged to buy a home now rather than later. It is worth noting that 78% of respondents indicated that homeownership is valuable regardless of shifting rates.

While 65% of respondents said they watch rates closely, there is confusion about recent rate trends. Among those who claim to watch rates closely, 43% believe that rates are holding steady or falling, though rates have risen so far this summer.

The knowledge gap calls for advice and guidance from real estate professionals to help people make the best choices. Of survey respondents, 63% indicated that a good agent can help them make the right choices about the type of home and community they want. And having a trusted source of information and guidance is important to 64%.

“Our survey shows that Americans who are looking to find and purchase a home remain positive about their prospects, and they’re looking to the guidance of quality real estate agents to navigate the entire process,” said Stephen Phillips, chief operating officer for HSF Affiliates LLC. “Home buyers are more informed than ever with their Internet searches and ongoing research; however, there’s a critical need to transform that information into analysis and advice that helps consumers make the best home-buying and selling decisions.”

The full survey details are available upon request. An infographic illustrating survey findings can be seen above.

Prudential Real Estate Outlook Survey Methodology
Interviews with 2,600 Americans who are “in the market” to buy or sell a home were conducted online by Edelman Berland in June-July 2013, Respondents are aged 25-64 with a household income of at least $50,000, and either recently bought/sold a home or are considering buying/selling a home. The margin of error is ± 2.0% for all respondents.

July 25, 2013

Home Ownership Matters

July 2013_Ecard

Home ownership does matter. It has a significant impact on net worth, educational achievement, civic participation, health, and overall quality of life. Plus, it helps create jobs, lots of them, right in your community. Did you know that for every two homes sold in the U.S., one job is created?

A few more perks of home ownership:

Increased Equity
As you pay down your mortgage, you own more of an increasingly valuable property. Sometimes you can borrow against this equity for home improvements or other investments.

Appreciating Investment
The real estate market does fluctuate, but over time the value of your property could appreciate.

Tax Benefits
Interest and closing costs are big expenses. However, when you file your taxes, you may be entitled to deductions based on points and interest paid during the year. This can be a very significant benefit especially in the early years of ownership when you are paying more interest.

Successful Children
Studies show that children of homeowners are more likely to graduate from high school and college, have better overall grades, and fewer behavior problems. They are likely to someday become homeowners as well.

Stronger Communities
Homeowners are more likely to maintain their homes, become involved in solving local problems, be part of community groups, are more likely to vote, and will remain in their homes 4 times longer if they own it.

Stronger Families
Homeowners are more likely to attend church, belong to parent-teacher groups, read local newspapers, and have less alcohol and substance abuse problems.

Stability, freedom, privacy
Owning a home has a significant impact on overall quality of life, including health, happiness, and security. Homeowners tend to have a greater sense of control over their lives.

May 30, 2013

Homeowner Survival Skills

Sooner or later, little things around your home will start to go wrong. 

Use this information to help you correct these common mishaps.

Fix a leaky faucet

Usually due to a bad washer or cartridge in the handle.  Turn off the water supply (under the sink), and cover the drain so no small parts go down it.  Pop the cover on the handles, remove the screw, and the handle.  Disassemble the stem next, using a wrench and lining up the parts in order so you will know how to put it back together.  Remove and replace the damaged or cracked parts and reassemble the stem and handles.

  keylockOpen a seized dead bolt

Spray some WD-40 into the keyhole to lubricate the mechanism. Prevent it from seizing by spraying once a year with Teflon spray.

Stop an overflowing toilet

The float inside the tank drops when the toilet is flushed and water from the tanks moves into the bowl.  It then rises as the bowl and tank are re-filled.  To prevent more spillage when the bowl is brimming over, lift the lid on the tank, grab the float and lift it to close the valve.  While holding the float, turn off the toilet’s water supply.  Now it’s clean up time!

  Pick an interior lock

Toddler locked in her bedroom?  Look for a small hole on the knob or the plate around it.  Take a slim piece of metal (screwdriver for eyeglasses, ice pick, metal skewer) and slip it into the hole to compress the spring inside.  In some cases, you will need the flathead screwdriver to insert into a slot on the spring and turn it.  Either way, you’ll disengage the lock and set your little one free!

fireUse a fire extinguisher (remember PASS)

P – Pull the Pin

A – Aim nozzle at the base of flames

S – Squeeze the trigger

S – Sweep the spray from side to side

Work calmly but quickly!! (most extinguishers have 8 seconds of life)  Call 911 and let the pros confirm that the fire is really out.

  hedgePrune a sick hedge

Trimming a shrub from the top only will make it too bushy and will prevent the sun from reaching interior branches and roots.  Pruning from the interior out will help bring it back to health.  Pull back outer branches so you can reach the interior to clip away dead branches.  Cut back tall shoots where they join the branch rather than snipping the end.  Use this method to prune about 1/3 of the bush for 3 years and your bush will thrive!

Unclog a sink

Skip the liquid drain cleaner and remove manually.  Remove the stopper and block off any overflow holes.  With water in the sink, use a flat-faced plunger to plunge the drain and remove clog.  If it doesn’t move, use a wrench to remove the U-shaped trap under the sink and look for the clog there.  If the clog is deeper, rent a hand-snake to reach it.  Slowly feed the coil into the drain, when you get to the clog carefully, twist, pull and push the coil to dislodge the clog.

  Unstick a door

Excess humidity in summer can cause a wooden door to swell and stick.  A gap of 1/8” to 3/16” between the door and jamb is recommended to accommodate seasonal changes.  Note where the door sticks and use a bench plane to shave off the high spots.  Round over any sharp edges with sandpaper and paint the exposed wood.  Allow to dry completely before closing the door.

Bypass garage door opener if your power  is out

Pull the red cord that dangles from the ceiling-mounted operator to disengage the electric chain drive.  Then you can slide the door open manually.  Be careful, a full-size garage door can be very heavy!

  Remove the base of a broken lightbulb

Unplug the lamp or turn off the fixture.  Cut a potato (russets are best) in half and gently press it onto the jagged glass.  Turn slowly to remove the base.

 

 

Did you like this article? Then you may like our article on “Repair or Replace

Have a real estate question? Contact a Prudential Homesale real estate experts today to find out more about the home buying and selling process.

May 22, 2013

Dress Up Your Outdoor Living Space

Looking for a fun way to dress up your outdoor living space? check out these great do-it-yourself projects using recycled wooden pallets.

It is no secret that wood pallets can be repurposed into impressive furniture and decor.It is amazing what people have created from these abundant, often discarded resources that can usually be found for free with little effort.

Dress Up Your Outdoor Living Space

Pallet Sofa Materials:  4-5 Pallets, Plenty of workspace, good pair of gloves, Circular saw, 3×3 or 4×4 posts for frame, wood screws, sander for smooth finish, clear wood sealer, outdoor cushions/pillows, and some creativity!

Pallet Coffee Table Materials:  Wooden pallet, sander for smooth finish, 4 wheels, paint or sealer to create a colorful, water-resistant finish.  Don’t forget to personalize with a few flashy items to sit on top!!

Pallet Benches Materials:  Several wooded pallets (depending on how many benches you want), tape measure, saw, sander, wood screws, paint or sealer to finish, and more creativity!!  Keep in mind….if your benches are not against an outdoor wall you will need to be sure the backs are well supported!

Outdoor Lounger Materials: 2 Pallets, sander to smooth, 2-3 metal hinges, chains & hooks to secure adjustable back of lounger, paint or water sealer to protect wood, colorful, outdoor cushions, And of course a good book and icy, cold beverage to enjoy when you are finished!!

For detailed instructions and more do-it-yourself decorating ideas visit: http://goodideasforyou.com/ideas-a-inspirations/summer-a-gardening/patio-furniture.html

February 25, 2013

The State of Real Estate

Homeownership is important and attitudes are positive, however, with the lingering crisis and trouble qualifying for a mortgage, we now find guidance is more important than ever.

Prudential Real Estate Outlook Survey Infographic-final-large-web

February 14, 2013

Hearts & Homes

It’s Valentine’s Day, so here’s an Infographic that we found on RealEstate.com which takes a look at how romantic attachments influence home buying.  The graph looks at the statistics for the married vs. single populations of U.S. cities. The U.S. demographics have changed, and for the first time more households are unmarried. Check out the full article here.

Valentines-Day-Infographic2

Homes in Maryland  | Homes in Pennslyvania

October 15, 2012

PrudentialHomesale.com’s Web Stats

We take pride in our efforts to expand our online exposure to help people achieve their dreams of homeownership.  These are some stats for our web traffic from January – June 2012 to PrudentialHomesale.com, our cutting-edge real estate website that helps home buyers and sellers through all aspects of the real estate transaction.

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