Page 10 - June 2021 Issue.indd

DOLLARS AND SENSE by Tolbert Rowe

Preparing for Home Ownership

eciding to purchase your With demand for housing so high, to the bottom line, for reinvestment or
first home is right up there interest rates so low and the prices profi t.

with getting married and of houses continuing to increase, the
So, if a person needs to live somewhere
Dhaving children in the life $64,000 question becomes, “is buying
other than with family I think the best

altering decisions a person can make. a home in this inflated market a good
choice is to buy a home, if you are
Preparing for homeownership is the investment for a fi rst-time home buyer?”
properly prepared and ready for the
most important step you can take in Or should they rent or hang in there
responsibilities of owning your home.
your financial life and is one that is not living with parents or family until the

Owning a home is the best way to create
taken lightly. Having reliable income market settles down?
wealth for yourself and the sooner you
now and in the future is the foundation
There is no denying that most young can take advantage of the opportunity
necessary to begin the journey toward
adults would prefer to have a place to call to own the better.
homeownership.
their own. As much as the love of family
If you purchase your first home in today’s

Low interest rates, flexible working is always there, the time comes when
market you must consider it a long-term
conditions and limited housing young adults need to leave the nest, not
investment. Thinking you can buy a
inventory has driven housing prices only for their sanity and well-being, but
home today and watch it appreciate 10%
through the roof…no pun intended. for that of their parents as well.
or more over the next several years,
Sales of previously owned homes surged

The lack of aff ordable housing is made sell it and take a chunk of equity and
14% in 2020 to their highest level in 14

more challenging by an influx of people purchase a bigger and better home is
years. New household growth in the
moving to our area to take advantage of not a prudent strategy, unless you are
United States has increased from 124
our lifestyle and lower housing costs. able to make a sizable down payment.
million in February 2020 to 126 million
The ability to work remotely has made Most first-time home buyers have barely

in March 2021.
this option more viable, even for those enough to cover closing costs, let alone
52% of young adults, age 18-29 as defi ned who are more interested in renting. funds for a sizeable down payment.
by the US Census Bureau were living
It is predicted that as our economy In today’s real estate market there are
with parents or family in September
recovers 30% of the workforce will be more buyers than sellers, making it a
of 2020, and this is the predominant
required, or at a minimum given the seller’s market. There are no “great deals”

age group of those creating a new
option, to work from home. Employers to be had. You are considered lucky if
household, whether buying or renting.
have found that many employees are you have a “deal” at all. Properly priced
Demand for housing, both to purchase
more productive when working from properties are being shown within hours
and to rent, is predicted to be strong well
home than at a central location. Every of when the listing goes active. Realtors
into 2022 as the economy continues to
dollar that a business does not spend in have found success in “pre-listing”
improve and recover from the impact of
office space for employees goes directly properties by notification that a listing

the coronavirus shutdown.
is “coming soon”, creating interest in the
home before the For Sale sign is planted
in the yard. Within days of going active
there are multiple showings and many
“Your Mortgage Consultant Since 1985”
and multiple off ers.
Purchase or Refinance
Sellers expect realtors to get the highest
and best price for their home. The
challenge for fi rst time home buyers in
this market is accepting the fact that the
final sale price agreed to by the seller is

115 E Dover St. Ste 3 - Easton, MD going to be more than the asking, or list
price. When your realtor advises you
tolbert@baycapitalmortgage.com C. Tolbert Rowe, to make your highest and best off er, be
www.baycapitalmortgage.com NMLS Vice President/Lending
182844 prepared that you may be competing
with three, four, or even more offers.
410-819-3005 / cell 410-310-3520 The most I have seen on a home was 17.

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