Is It Time for Young Families to Buy a Home?

We have reported that almost six million adults between the ages of 25 to 34 are currently living with their parents. That number reflects an almost 50% increase since 2003. These young adults are now being advised to jump into homeownership.

Who are the people selling them on the American Dream? Their parents! It seems that parents of some adult children are strongly suggesting that their children take advantage of the low cost of homeownership available today. Some moms and dads are helping financially and are even co-signing for the mortgage. Middle age parents who have owned a home understand its true value. A home has always been a good long term financial investment. However, homeownership also has many other benefits.

In Fannie Mae’s most recent National Housing Survey, they asked the question directly: Is this a major reason to buy a home?

The study broke up the answers into financial and non-financial reasons. The top four reasons and six of thetop ten reasons were NON-FINANCIAL. The top four are below:

  1. It means having a good place to raise children and provide a good education.
  2. You have a physical structure where you and your family feel safe.
  3. It allows you to have more space for your family.
  4. It gives you control over what you do with your living space (renovations & updates).

Should this surprise us? Aren’t these the same reasons our parents bought their home? Aren’t these the same reasons we purchased our home? These are the same reasons parents have suggested their children buy a home. They want the same things for their grandchildren that they believed to be important for their children.

And today, the cost of homeownership is at all time lows:

J.P. Morgan

“The numbers on housing have an important message for American families today, and particularly younger families setting out on life’s great adventure: Five years ago, at the peak of the home-buying euphoria, it was emphatically a time to rent. Today, when home ownership is depreciated more than ever before, the numbers tell us it is a time to buy.”

MSNBC.com

“[S]omeone who plans on staying put for seven years would come out ahead by about $9,000 if they bought a median-priced home rather than being a tenant in a median-priced rental.”

HUD

“Homes today are more affordable for average families than they have been since 1971. Median-income families today have nearly double the funds needed to purchase the average home.”

Bottom Line

Now that the economy is beginning to show signs of stabilizing, people are getting back to the core values that families have always embraced. Homeownership is definitely high on that list. And today, from a financial standpoint, it may be the opportunity of a lifetime.

 This Article Was Provided by The KCM Blog www.kcmblog.com
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Featured Area: Candler Park and Inman Park

The Candler Park and Inman Park neighborhoods are located in Intown Atlanta, about 5 minutes east of downtown and just south of Ponce De Leon Avenue. Each neighborhood is proudly labeled one of Atlanta’s first suburbs and both are listed on the National Register of Historic Places. Candler Park and Inman Park are family-friendly neighborhoods with a focus on walkability and livability. Candler/Inman Park is home to many talented people, great shops, bars, and everything eclectic. Nestled right in the neighborhood, Wisteria Restaurant serves up southern hospitality and contemporary southern cuisine along with an award winning wine and spirits list. Also located around the corner is La Fonda Latina, which evokes a carnival mood with their brightly painted furniture and walls. During the last full weekend in April each year, Inman Park proudly presents a Neighborhood Festival widely regarded as Atlanta’s most spirited and eclectic.

Contact me for all of your Intown real estate needs. 678.983.7987

Cary Blumenfeld

http://www.cary.blumenfeld.harrynorman.com

Come Paint at Sips N Strokes!

Paint the “Super Pets” this Friday night at Sips N Strokes Toco Hills!

CLICK HERE to see the full calendar

Sips N Strokes Toco Hills

3019 North Druid Hills Road N.E.
Atlanta, GA 30329
Phone: 404-901-1099

Brookhaven Renovation Part 2

Today we dug really deep and managed to finish gutting the bathroom. It turned out to be a pretty difficult task as there were some obstacles we faced while breaking down the walls and the flooring. The first issue we encountered was the shower drain falling through the sub flooring and into the crawlspace. The wood had become so warped and damaged due to water and old age that when we pulled up the surrounding floor, it just broke off completely. We encountered a few surprises along the way, such as the patched window that was located in the same place the old vinyl shower insert had been. The wiring we found throughout the bathroom had obviously not been changed since when the house was built, circa 1940. This is evident in the prehistoric electrical configuration we found behind where the sink used to be. The main drain pipe supplying the house had been hacked into numerous other times, whether it was renovation or just fixing problems, it became a problem for us. The pipe had been vented correctly, but you can see where contractors had cut beams almost in half trying to correct spacing issues, rather then fixing the problem correctly. If you take a look at the overhead pictures, you can see where the vent is still located. We realized that the vent had been covered in insulation and was actually a pretty major fire hazard. Also due to the insulation coverage, there was no circulation in the bathroom, cause a massive amount of mold to develop throughout the entire bathroom. I consider us lucky because I truly felt as though we were going to find leaking pipes, and worst case scenario, a leaking roof, but all it turned out to be was an insulation smothered and covered fan. Pure Luck. We got the entire sub flooring up and realized that the drain pipe servicing the sink had been slowly leaking. It ended up not being a big deal because we had decided not to keep the old tile due to the preexisting warping that told me there was water under it in the first place. Stay tuned for more updates as I take you through the complete renovation process of the Brookhaven Property.

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Cary Daniel Blumenfeld

Harry Norman, Realtors

http://www.cary.blumenfeld.harrynorman.com

Brookhaven Renovation: Part 1

We have begun renovating our investment property in Brookhaven, the house was built in the 1940s and has definitely been showing its age recently. The first task is tackling the mold infested master bath. After a tumultuous bout with the mold spreading constantly in the bathroom, we decided to completely gut it and find out what the true problem is.

I was kicked out of the festivities once the moldy insulation began to show its ugly face. A few surprises came about, but nothing too serious yet.

Today at the tile store we explored aisle after aisle on the search for the perfect complementary pieces. We are installing wall tiles, shower floor tiles and separate floor tiles. We also had some fun while on the shopping trip.

Cary Daniel Blumenfeld

Harry Norman, Realtors

http://www.cary.blumenfeld.harrynorman.com

Fannie Mae HomePath® Buyer Incentive

HomePath® Buyer Incentive

Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through June 30, 2011.

The HomePath property buyer must meet the following qualifications to be eligible:

  • Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer in order to be eligible.
  • The initial offer must be submitted on or after April 11, 2011 and close by June 30, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  • The sale must close on or before June 30, 2011. No exceptions will be made to this deadline.
  • Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  • Buyer must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
  • If a buyer’s total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

**Note: The deadline is approaching fast. Traditional financing deadlines may exceed the deadline. Cash purchases are most likely to clear the deadline.

 

Cary Daniel Blumenfeld

Harry Norman, Realtors

http://www.cary.blumenfeld.harrynorman.com

Dwellology

Check out this blog post from NYC Matters … Click Here to see their full blog

The history of properties—homes intrigues me.  The unexplainable psychology of why people feel a kinship with a certain piece a real estate fascinates me, even more. At times, when I accompany a buyer or even a renter to view a property, for the first time, I become witness to their instant, vocal-certainty that, “This is the One,” as they open the unit’s door.

I, too, have had such a conviction when owning and renting a home.  I just knew—before viewing the rest of the dwelling, This-is-the-One.  Most recently, in 2009, my children asked me if we could move—to a larger apartment. Since our lease was about to end, I agreed, on the condition that they did all of the leg-work.  I gave them a list of must-haves: three bedrooms, two full bathrooms, washer/dryer within the unit, as well as our monthly budget.  I scheduled the appointments for them, and then, they went-a-hunting for our new, larger home.  The hunt lasted two hours before they called to inform me, “We’ve found ‘The One,’ Mom.” Umm, I thought, that’s interesting.

The One, happened to be the smallest of the apartments that I had scheduled for them to see, and it was on the top floor of a walk-up building (at the time we lived in an elevator-building).  As to why my teens would want to walk three flights-up to enter this possible new home, I had no idea.  I reminded them that they would have to carry the groceries up those three flights–every week, carry the trash down three flights of stairs–every day, and the apartment was basically the same size as the unit we were currently living in, not larger.  “We know.” Okay, I thought. So,  I went to see The One.

After I hiked-up three flights, and opened the front door, I understood their conviction—that inner, unexplainable pulling, telling me, “This-is-the-One.”  As to how my oversized furniture was going to fit into the small living room, I did not know; but I wanted the apartment, just as my teens, wanted it.   It just felt right.  And yet, it was a mystery, to me.

Then last summer, as I was exiting my building, I noticed a couple, standing in front of it, looking up and conversing amongst themselves, so I interrupted them, asking if they needed help with something.  The woman, who appeared to be in her sixties, informed me that she used to live in the building as a child.  Her father purchased it in the 1940’s.  They rented the first floor to tenants, resided on the second and third floor, and then a few years later, her aunt and uncle moved into the fourth floor unit.  I told them I lived on the fourth floor, and then, asked about her aunt and uncle.  To my astonishment, the woman informed me that her aunt was a once opera singer, who taught at Curtis Institute of Music in Philadelphia, and because her husband fell ill, they moved to be closer to her family.  Her aunt continued to teach music from the fourth floor apartment, for where I now lived.  Upon hearing this, I stood, stunned for a few seconds before I replied, “I used to be an opera singer, and I used to teach music—private violin and piano lessons to kids from my home—a long, long time ago—in Ohio.”  After we parted ways, I wondered if this was the reason for that unexplainable kinship I’d felt when entering my soon-to-be-home back in 2009.

Over the years, I’ve dwelled upon such unexplainable kinships to properties—per my own customers in real estate and those who are not my customers. I’m just intrigued by it all—all of those histories, linking strangers to the same home.  So much so, that in my free-time, away from real estate broker duties, I study deeds—recorded real estate documents of transfers, Google the owners, at times, read biographies, trying to find a link–owner to owner, of why such a place is The One for all of them.

I call this methodology—a kind of genealogy of homes, so to speak: Dwellology.

I dwell on dwellings.

My dream job, outside of Manhattan real estate broker, would be to research and write—professionally, unraveling these mysterious kinships, not just here in NYC, but around the world; and create a television show similar to, “Know Who You Are,”  with the more appropriate title, “Know Where You Dwell.” (This is all just a rambling day-dream, not necessarily a goal, dear reader.)

Do you really know about where you dwell?

If so, I’d love to hear about it…

 

Cary Daniel Blumenfeld

Harry Norman, Realtors

http://www.cary.blumenfeld.harrynorman.com