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      Blog :: 03-2019

      How to Put Your Housing Cost to Work for You

      How to Put Your Housing Cost to Work for You | MyKCM

      There has been a lot written about the benefits of homeownership. One benefit that continues to rise to the top is the added wealth homeowners gain simply by paying their mortgage while their home increases in value over time.

      The National Association of Realtors (NAR) recently broke down the equity gained from price appreciation and principal payments in their Economists Outlook Blog. Homeowners who purchased their homes five years ago have already gained almost $80,000 in equity over that time with 80% of the gains coming from price appreciation.

      For a homeowner who purchased their home 30 years ago, they have gained nearly $250,000 in equity with 70% coming from price increases. The full results can be seen in the chart below.

      How to Put Your Housing Cost to Work for You | MyKCM

      According to the Home Price Expectation Survey, a family who purchased a median priced home this January can expect to gain more than $42,000 over the next five years simply from price appreciation alone.

      Bottom Line

      Your home is one of the only investments you can live inside as you pay it off over time. If you are ready to use your housing costs to build wealth, let’s get together to discuss how to make your dream a reality.

      Homeownership is a Cornerstone of the American Dream

      Homeownership is a Cornerstone of the American Dream |MyKCM

      “The rumors of my death are greatly exaggerated.”

      The famous quote attributed to Mark Twain can apply to homeownership in the United States today. During the housing bubble of the last decade, the homeownership rate soared to over sixty-nine percent. After the crash, that percentage continued to fall for the next ten years.

      That led to speculation that homeownership was no longer seen as a major component of the American Dream. That belief became so widespread that the term “renters’ society” began to be used by some to define American consumers.

      However, the latest report by the Census Bureau on homeownership shows that over the last two years, the percentage of homeowners has increased in each of the last eight quarters.

      Homeownership is a Cornerstone of the American Dream |MyKCM

      Going forward…

      It appears the homeownership rate will continue to increase.

      The 2019 Aspiring Home Buyers Profile recently released by the National Association of Realtors revealed that 84% of non-owners want to own a home in the future. That percentage increased from 73% earlier last year.

      Bottom Line

      In the United States, the concept of homeownership as part of the American Dream is very much alive and well

      Compass Contemplations for Wednesday

      WELCOME, WELCOME to Alain Pinel Realtors who over the past 30 years have become leaders in the Bay Area, known for their luxury offering and strong culture. 

      DID YOU KNOW? More than 50% of the executives recently surveyed by KPMG said Silicon Valley will cease to dominate global tech innovation within the next 4 years, as New York, Boston, Beijing, London and other cities continue their evolution into tech innovation powerhouses, citing factors that include an expansion of tech investing in cities and regions outside of San Jose, Palo Alto and Menlo Park, Calif. Their top pick for the next leading source of technology innovation was New York—up from No. 3 in 2018—followed by Beijing, Tokyo and London. Other U.S. cities that ranked in the top 10 were Boston and Austin, Texas. Washington, D.C., placed 13th. 23% named the U.S. as having the biggest global impact on technology, down from 34% in a similar survey last year. (WSJ)

       

      DID YOU KNOW?  Speak to any developer or builder and they will let you know how their costs have risen in the past 12 months: American consumers have been saddled with $69 billion in added costs because of the tariffs the U.S. imposed in 2018, including on $250 billion on Chinese imports as well as levies on steel and aluminum, according to a study released by a quartet of economists working on a National Science Foundation grant. (WSJ)

       

      DID YOU KNOW? About 63% of the world’s wealthiest said they grew richer in 2018, thanks in part to stock market gains and global economic growth. These individuals also expect their wealth to increase over the next year. Confidence was highest in the U.S., where 80% of individuals worth $30 million and more expect to be better off over the next year. Over 47,000 people in the USA are worth $30 million plus. (WSJ) 

       

      DID YOU KNOW?  I have personally never witnessed more creative photography angles than those being used to photograph 220 Central Park South - the uber-tower that houses the USA's most expensive penthouse sale:  all are either blocking out - or photo-shopping out - it's next door neighbor that looms several hundred feet taller.....

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