Purchasing a home is one way to have control over your housing. But homeownership is also a wealth-building superpower. Pay off the mortgage, and the loan balance shrinks. Month by month, the home becomes a source of value that can grow with the real estate market.
At some point, you might want to tap into that value, to fund other goals. As a homeowner, you can consider a home equity loan (HEL) or home equity line of credit (HELOC).
Home sellers are staying away from the market in droves this year. Millions fewer new listings hit the spring market. Zillow reports that the February 2023 volume of listings is down 23% year over year.
The missing sellers are sending a message to the market. Look how comfortable we are with our current mortgages!
Most would prefer not to sacrifice this comfort to buy another home with a less comfortable loan. Trading up to one of today’s mortgages could easily add hundreds, even $1,000 or more to their monthly mortgage payments.
In case you were wondering, that’s where most homeowners are this season.
Single women are a force to be reckoned with in residential real estate.
Most real estate marketing photos show couples and families. Understandably, considering that the National Association of REALTORS® says couples do buy the bulk of homes for sale.
But single women, NAR says, buy 17% of the homes. That’s big. Solo men, in comparison, buy just 9%.
Women, who couldn’t even apply for home loans without male co-signers until 1974, now own about 13% of U.S. homes bought as primary residences. The stats clearly show the high convictions of women in the role of real estate in their overall wellbeing.
“I am meeting young people who make $78,000 and they cannot find a home. They cannot bid (against investors). They don’t have the money…Who wants to pay $3,000 a month for their first home? Nobody. It’s unsustainable.”
—Dina Neal, a state senator in Nevada, quoted in the Nevada Current.
We all know the stories of investors elbowing out ordinary home buyers. Corporate buyers really revved up after Covid took hold and real estate prices soared. Especially in Nevada. The nonprofit Stateline, examining statistics from CoreLogic, found that investor-buyers snapped up about one in four Nevada listings by 2021. Only Georgia and Arizona beat out Nevada on the score of how much real estate is going into the portfolios of corporate real estate investors.
Now, it looks like policy makers are ready to push back. State Senator Dina Neal of North Las Vegas is sponsoring Senate Bill 395 to rein in the large, corporate buyers.
It’s legal to buy a house at the age of majority. That special number is 18 years old — with a few exceptions. People reach legal adulthood at 19 in Alabama and Nebraska. And Mississippi residents are late bloomers—they stop being minors at age 21.
Legal majority means you’re old enough to apply for mortgages, sign (or even co-sign) binding contracts, and close real estate deals.
But it usually takes quite a few years after the age of majority to build the credit profile that works for a mortgage.
Setting up an LLC for an investment property is simple, and not terribly time-consuming. Doing it well does take research, attention, and professional support. But it may be worthwhile.
Here are some basic considerations to have on your radar if you wonder whether forming an LLC could be a worthwhile goal. This is not legal or financial advice — just a checklist to help guide your own due diligence.
Climate disruption has caused more extreme weather. As we’ve noted before, the impacts of out-of-whack weather systems are making their mark on real estate.
Results of these extremes include intensified stormwater management challenges all over the continent, as unusually heavy storms inundate buildings. Of course, engineers design stormwater systems to handle and redirect the water. These systems, when they work well, head off pollution and flooding. But many areas are finding the need to update their infrastructure.
So, new stormwater fees are taking effect in many U.S. cities and towns. Here’s what we’re watching, in Q&A format so it’s quick and easy to find specific answers.