J. Kent Erickson, Broker Associate
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5 Powerful Reasons to Own Instead of Rent

Posted by on Jul 18, 2019 in Buying a Home, Home Ownership | 0 comments

Owning a home has great financial benefits. In a recent research paper, Homeownership and the American Dream, Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained: “Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built-in ‘default’ savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity.” Let’s breakdown 5 major financial benefits of homeownership: 1. Housing is typically the one leveraged investment available Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. A 20% down payment results in a leverage factor of five, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you...

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Time for Your Dream Home, Gen X!

Posted by on Jun 20, 2019 in Buying a Home, Home Ownership | 0 comments

During the housing market crash, Gen X homeowners lost more wealth than other generations. However, things are changing now! A strong economy, increasing home prices, and the recovery of the housing market are helping this generation to regain their lost wealth. According to Pew Research Center, “Their fortunes have rebounded more than those of other generations during the post-recession economic expansion and as home and stock prices have risen. Since 2010, the median net worth of Gen X households has risen 115%. In fact, in 2016, the most recent year with available data, the net worth of a typical Gen X household had surpassed what it was in 2007 ($84,200 vs. $63,400)”. The same report also mentioned, “15% of Gen X’s homeowners were ‘underwater’ on their homes in 2010 (meaning they owed more than they owned). By 2016 only 3% were...

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Top 4 Renovations for the Greatest Return on Investment! [INFOGRAPHIC]

Posted by on Jun 18, 2019 in Home Ownership, Selling a Home | 0 comments

Some Highlights: If you are planning on listing your house for sale this year, these four home improvement projects will net you the most Return on Investment (ROI). Minor renovations can go a long way toward improving the quality of your everyday life and/or impressing potential buyers. Whether you plan to stay in your house for a long time or just a few years, it’s smart to know which home renovations add the most...

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How Homeownership Delivers Unsurpassed Family Wealth

Posted by on Jun 4, 2019 in Home Ownership, Mortgage & Finances, Real Estate Market | 0 comments

There are many financial benefits to homeownership, but probably none more important than its ability to create family wealth. How Housing Matters is a joint project of the Urban Land Institute and the MacArthur Foundation. It is an online resource for research and information on how homeownership contributes to individual and community success. Their article, The First Rung on the Ladder to Economic Opportunity Is Housing, explains the importance of homeownership to a family’s financial health. In that article, they simply stated: “The ladder to economic success can stretch only so high without the asset-building power of homeownership.” To this point, National Association of Realtors’ (NAR) Economists’ Outlook Blog revealed in a recent post: “Housing wealth contributes positively to the homeowner’s and children’s economic condition, because home equity can be tapped for expenditures such as investing in another property (which can generate rental income), home renovation (which further...

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Home Buyers are Optimistic About Homeownership!

Posted by on May 10, 2019 in Buying a Home, Home Ownership, Real Estate Market | 0 comments

When we consider buying an item, we naturally go through a research process prior to making our decision. We ask our friends and family members who have made similar purchases about their experience, we get opinions and insights, and we read reviews online. There’s no difference when considering a home purchase! Most homebuyers start by listening to the news to hear what is being said about the real estate market. They check with family and friends about their experience. They spend time online reading reviews about their desired neighborhood. The challenge is that comments from the news and those closest to us can contradict the data and reports. One source says one thing, while another source says something completely different. There is a group of homebuyers that are not allowing comments about an upcoming recession to interfere with their decision to...

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How Quickly Can You Save Your Down Payment?

Posted by on May 2, 2019 in Buying a Home, Home Ownership | 0 comments

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state. 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, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a...

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