08/10/06
HOMEOWNERSHIP = THE GOOD LIFE
Over the years there have been countless studies relative
to the social benefits of homeownership. Members of the West Michigan
Lakeshore Association of REALTORS have long known that homeownership
is an important part of life in America and that the benefits are enormous.
Few emotions can match what is felt when a first-time buyer gets the
keys to their home and walks over the threshold for the very first time,
or the feeling of satisfaction that arises when a homeowner steps up
into a larger family home to better serve the needs of the family.
Recently, the National Association of REALTORS (NAR)
completed a systematic review of many summaries of academic research
that make a strong case for public policies that promote homeownership.
According to WMLAR President, Tom Speet, “homeownership is an unbeatable
way to provide the kind of stable housing that leads to a wide variety
of household benefits and, by extension, social benefits for the community.”
Among those benefits:
Higher educational performance and better behavior
of children
Lower community crime rates
Lessened welfare dependency among households
More household participation in civic affairs
Better household health
For information on you how can attain the dream of homeownership for
the first time, or to move on up to that bigger next home, contact a
member of the West Michigan Lakeshore Association of REALTORS.
TO BUY OR NOT TO BUY?
Its been previously reported by the West Michigan
Lakeshore Association of REALTORS that this is a fine time to buy a
home here in west Michigan. Sometimes, homeseekers debate whether they
should rent or buy. The REALTOR Association points out that renting
can often cost significantly more on an annual basis than owning a home.
A newly released consumer education brochure from the National Association
of REALTORS challenges certain assumptions about renting versus buying
and helps REALTORS evaluate with their clients and customers whether
homeownership is right for them.
"Housing is a good investment, and owning
a home makes great sense for a lot of current renters but many would-be
homeowners are reluctant to take that first step, according the NAR
President, Tom Stevens. Given their experience with homebuyer concerns
and insight into local markets, REALTORS can counsel consumers about
their options and provide the information and support people need to
begin their journey toward homeownership."
The Federal Reserve Board estimates that homeowners
have a net worth of nearly 36 times more than that of renters. Over
the past 10 years, the cost of rental housing in the United States has
increased an average of 3 percent per year; average rents are projected
to rise 4.1 percent this year alone. With a 3 percent annual increase,
a current rental payment of $1,000 per month would increase every year
and amount to $137,567 after 10 years, with no wealth accumulation.
In contrast, a $210,000 home purchased today with a downpayment of $10,000
and a 30 year fixed rate mortgage at 6.5% would cost a steady $1,100
per month and yield a net worth of $138,521 after 10 years, assuming
a historic annual appreciation rate of 4.5%. The CEO of the West Michigan
Lakeshore Association, Dale Zahn says, "The decision to become
a homeowner involves many factors, some financial, some personal and
certainly emotional. Our REALTOR members in west Michigan help thousands
of people every year and look forward to assisting many more in today's
market with plenty of housing options available."
