Despite the financial toll the recent financial crisis has had on Americans, renters continue to hold homeownership in high esteem, and it remains a goal for the majority of them, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) “2013 Renter Survey.”
Nearly three-quarters of renters rated homeownership as “important,” and more than half of renters (52 percent) said they plan to buy a home in the future, as nearly all see the advantages of owning versus renting.
“It’s encouraging that the majority of renters still believe buying a home is a good investment, even after the adverse effects of the Great Recession,” said C.A.R. President Kevin Brown. “Renters clearly see the benefits of owning a home, citing building equity, freedom to do what they want with their home, pride of ownership, stability, and tax deductions as the top advantages of homeownership.”
This is the first time C.A.R. has conducted its Renters Survey. The survey was conducted by telephone to 800 home renters statewide from April 26-May 25, 2013. The survey was also conducted online to 875 home renters statewide in August 2013. Demographic profiles of the two sets of respondents varied some, with the most significant difference being their age. The median age of online respondents was 39 and was 45 for telephone respondents.
While almost half of all respondents believed that gaining equity and investing for their future and their children’s future was an advantage of homeownership, online respondents were twice as likely to carry that belief. Online respondents were also three times as likely to believe in freedom gained from homeownership and were twice as likely to take pride and feel satisfaction from owning something of their own.
There are other interesting differences between online and telephone respondents. Among online respondents to the survey, 33 percent indicated having outstanding student loans, with 84 percent averaging less than $10,000 of student loan debt. Fourteen percent of telephone respondents had outstanding debt, with 17 percent owing more than $50,000.
Additionally, telephone respondents are more stationary and are less likely to move in the near future. Meanwhile, more than one-third (35 percent) of online respondents plan to move within the next couple of years. Online respondents, for various reasons, are also more likely to see significant increases in their rents, with 17 percent indicating their most recent rent increase was more than 20 percent.
Twenty-six percent previously owned a primary residence, and 6 percent currently own real estate. Of those who previously owned a home, the reasons for selling include: Needed to move for family reasons (24 percent), foreclosure (14 percent), needed to move for work (13 percent), short sale (11 percent), and bankruptcy (3 percent).
The home-buying experience can be challenging for home-buyers because of the detailed process and the involvement of so many outside parties. Do you know if you’re truly ready to purchase a home? Realtor.com shares 10 Steps to Home Ownership.
1. Decide what you want, and if you are ready. Whether you are a first-time home buyer or entering the marketplace as a repeat buyer, you need to ask why you want to buy.
2. Get a Realtor. Buying and selling real estate is a complex matter. In this maze of forms, financing, inspections, marketing, pricing and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local REALTORS® who serve your area.
3. Get Pre-approved for a Loan. Contact your local Bay Equity loan officer and pre-qualify for a loan today!
4.. Look at Homes. Millions of new and existing homes are sold each year. There’s no shortage of housing options, but with so many choices the challenge becomes finding the property which best meets your needs.
5. Choose a Home. There’s no doubt that choosing a home is a big decision and you want to do it right.
6. Get Funding. Often the cost of real estate financing is routinely greater than the original purchase price of a home (after including interest and closing costs). Because financing is so important, buyers should have as much information as possible regarding mortgage options and costs.
7. Make an Offer. This is where your Realtor comes in handy. While much attention is spent on offering prices, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value for buyers — or additional costs. Terms are extremely important and should be carefully reviewed.
8. Get Insurance. The essential idea behind various forms of real estate insurance is to protect owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.
9. Close the Loan. Closing is a brief process where all of the necessary paperwork needed to complete the transaction is signed. Closing is typically held in an office setting, sometimes with both buyer and seller at the same table, sometimes with each party completing their papers separately.
10. What’s Next? Move in, make your house your own, and enjoy your new purchase!
use your own, and enjoy your new purchase!
One of the major advantages to building a new home is the fact that you have more flexibility in choosing a floor plan. With so many options to choose from, here are some things you should think about ahead of time in order to ensure you make the right decision.
Think about your Lifestyle
Your home should be a reflection of you, which is why your floor plan should easily fit your lifestyle. If you entertain often, you may want to consider an open floor plan that would allow your guests to mingle with one another. You could also need a home office that’s located some distance away from your living room in order to ensure it’s peaceful and quite. Begin by making a list of your needs so that you can talk with California new homebuilders about them, as this will allow you to see floor plans that would meet your requirements.
Consider Future Changes
Are you likely to take in an aging parent or need to make room for an adult child to move home? If so, you could want to include an in-law suite to your floor plan. Likewise, if there’s a chance someone in your family could need to use a walker or wheelchair soon, you may want to go ahead and make your new home accessible. Buyers are holding onto their homes longer than ever these days, which means your new residence should be versatile enough to see you through a number of life stages without needing excessive modifications.
What size do you need?
The size of home you choose can largely determine the floor plan, as some rooms may need to be smaller or have entries relocated in order to make them practical. An experienced builder will be able to take your list of requirements and then determine the best possible layout within the size you specify. In fact, a contractor could actually come up with several unique possibilities so that you could come up the choice that suits you best.
Here at Trumark Homes, we have a number of floor plans for homes of varying sizes. Contact us today to find the one that’s right for you so you can begin enjoying your dream home as quickly as possible.