Island Home Loans

Owning a home can have an incredible impact on your quality of life. Let's connect if you're ready to make your dream of #homeownership a reality! : (808) 961-0605... : [email protected] : www.islandhomeloans.com : @islandhomeloans See more

93% of Americans Believe a Home Is a Better Investment Than Stocks A recent Survey of Consumer Finances study released by the Federal Reserve reveals the net worth of homeowners is forty times greater than that of renters. If you’re wondering if homeownership is a good investment, the study clearly answers that question, and the answer is yes.... Do Americans believe a home is a better investment than stocks? In a post on the Liberty Street Economics blog, the Federal Reserve Bank of New York notes that 93.3% of Americans believe buying a home is definitely or probably a better investment than buying stocks. Refer to graph below to see the results. The survey also shows a wide range of reasons why Americans feel that way (respondents were able to pick more than one answer). Bottom Line The data show how strongly Americans believe in homeownership as an investment. That belief is warranted. The Liberty Street Economics blog put it best by saying: Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.

Homeownership is Full of Financial Benefits A Fannie Mae survey recently revealed some of the most highly-rated benefits of homeownership, which continue to be key drivers in today’s power-packed housing market. Here are the top four financial benefits of owning a home according to consumer respondents:... - 88% a better chance of saving for retirement - 87% the best investment plan - 85% the chance to be better off financially - 85% the chance to build up wealth Additional financial advantages of homeownership included in the survey are having the best overall tax situation and being able to live within your budget. Does homeownership actually give you a better chance to build wealth? No one can question a person’s unique feelings about the importance of homeownership. However, it’s fair to ask if the numbers justify homeownership as a financial asset. Last fall, the Federal Reserve released the Survey of Consumer Finances, a report done every three years, with the latest edition covering through 2019. Their findings confirmed that homeownership is a clear financial benefit. The survey found that homeowners have forty times higher net worth than renters ($255,000 for homeowners compared to $6,300 for renters). The difference in net worth between homeowners and renters has continued to grow. See graph below showing the results of the last four Fed surveys. The graph only includes data through 2019, but according to CoreLogic, the equity held by homeowners grew by $26,300 over the last twelve months alone. That means the gap between the net worth of homeowners and renters has probably widened even further over the last year. Some might argue the difference in net worth may be due to homeowners normally having larger incomes than renters and therefore the ability to save more money. However, a study by First American shows homeowners have greater net worth than renters regardless of their income level. See other graph below for their findings. Others may think homeowners are older and that’s why they have a greater net worth. However, a Joint Center for Housing Studies of Harvard University report on homeowners and renters over the age of 65 reveals: The ability to build equity puts homeowners far ahead of renters in terms of household wealththe median owner age 65 and over had home equity of $143,500 and net wealth of $319,200. By comparison, the net wealth of the same-age renter was just $6,700. Homeowners 65 and older have 47.6 times greater net worth than renters. Bottom Line The idea of homeownership as a direct way to build your net worth has met the test of time. Contact us today if you’re ready to take steps toward becoming a #homeowner.

If your house is feeling a little cramped with the addition of adult children or aging parents, it might be time to consider a move-up into a multigenerational home that better suits your changing needs. With benefits that include a combined homebuying budget and shared caregiving duties, an increasing number of households are discovering the value of a multigenerational home. With such high demand for houses today, now is a great time to #sell so you can upgrade to a multigenerational home that may better suit your evolving needs.

Some Buyers Prefer Smaller Homes Over the past year, we’ve had plenty of opportunities to reflect on what we consider most important in our lives. The place we call home is one of the biggest things many of us are reevaluating. George Ratiu, Senior Economist at realtor.com, shares:...Continue reading