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1862 Mortgage Offers Home Affordable Refinance Program

Wednesday, February 29th, 2012

A new financing package is being offered to help homeowners who have been unable to get traditional refinancing because the value of their home has declined.

The new Home Affordable Refinance Program (HARP) assists homeowners who have a higher loan balance than the current value of their home, yet allows refinancing into lower mortgage interest rates.

“This is a great opportunity for homeowners who have not been able to refinance and take advantage of current low rates,” said Jane Schneider, President of 1862 Mortgage, a participating lender. “I encourage those individuals to see if they qualify for this great new product.”

The loan must be owned or guaranteed by FreddieMac or FannieMae and the homeowner must have a good credit history. At this time, the new mortgage balance may not exceed 125% of the home’s current value.

To see if you qualify, contact Jane Schneider at 1862 Mortgage or any 1862 Mortgage Loan Officer for more information at 866.441.1862 or Info@1862Mortgage.com.

1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency.  For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.

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Is It Time for Young Families to Buy a Home?

Wednesday, February 22nd, 2012
Ruhl&Ruhl Realtors Young Family

Ruhl&Ruhl Realtors believes now is the 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 the top 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.

For the most up to date information on the housing market.  Keep checking RuhlHomes.com.

Courtesy of KCM Blog.com

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Where Are Rents Headed?

Tuesday, February 14th, 2012

People are delaying the decision to buy a home because they are not sure where prices are headed. If they buy and prices continue to soften, they feel that they will not have purchased at the optimal moment. They reason that, if they sit and wait, they can’t be hurt. This thinking assumes that a non-decision comes without consequence.

The normal retort to this thinking by people bullish on real estate is that prices may soon turn to the positive or that interest rates will start heading upward. Buy now before the cost of buying increases! Today, we want to look at this from a different angle. We want to alert our readers that their housing expense is about to increase if they continue to rent.

Currently, in most parts of the country, buying is less expensive than renting. Plus, purchasers can lock in their housing expense for the next thirty years by buying now. They will get a sensational price and a record low interest rate. What will happen if they continue to rent?

The Alternative to Buying

If a family continues to rent, they are looking at a housing expense which will rise with the market. Rental costs increase by 3% a year historically. But today’s rental market favors the landlord to a greater degree. Below is a graph of how rental prices have increased recently and where they are projected to go over the next few years based on a report from Marcus & Millichap.

 

Bottom Line

Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. Check with a local real estate professional to determine the best option for you and your family.

Visit RuhlHomes.com for the most up to date information on the housing market and to search active properties in the surrounding area.

Blog provided by: KCM Blog

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New Construction Inventory Falling

Friday, February 10th, 2012

Across the region served by Ruhl&Ruhl REALTORS, new home sales dropped by an average of nearly 14% (see chart below for more detail) while Ruhl&Ruhl REALTORS experienced a company-wide increase of over 6% in unit sales for the year.  Price level preferences were consistent with sales in the Quad Cities market, but the rest of the region expressed a much stronger preference for ranch style homes; at over 90% of sales in most areas. Inventory levels across the region fell by nearly 30%, compared to last year.   

The Quad Cities Area Realtor Association’s Multiple Listing Service sales and inventory figures for new homes in the Quad Cities have been compiled and the overall results for 2011 reflect a decrease in both sales and year-end inventory levels. 

Inventory of New Construction at the end of 2011 dropped 16% from a year ago, with available new houses down 29%.  Inventory of available condos is at the same level as this time last year.  Scott County is home to 79% of the 114 new homes listed on the MLS.  Overall unit sales in the market dropped by 20% when compared with 2010, with new house sales down 28% and new condo sales down 1%.  Scott County experienced a 29% decrease in houses and a 3% decrease in condos for a combined drop of 22%.  Rock Island County saw an 18% drop in houses and a 9% increase in condos for a net decrease of 4%. 

Ranch style houses represented 48% of sales.  Of the combined total of 217 new construction home sales reported by the MLS; 136 (63%) were houses and 81 (37%) were condos.  Scott County reported 196 (90%) of the total sales for both counties.  The most active price range for new houses remained from $200,000 to $300,000, followed by $300,000 to $400,000.  These two ranges together represented nearly 57% of new house sales in 2011, but when compared with 2010 results, they also combined for 75% of the total sales decline in 2011.  In 2010, they represented 62% of house sales.  Condo sales were dominated by sales below the $175,000 level with 65% of sales falling under that point.

A family-owned company since 1862, Ruhl&Ruhl REALTORS has grown to more than 275 sales associates, 58 employees and eleven offices, selling more than 4,300 homes in eastern Iowa, western Illinois and southwestern Wisconsin. The company has residential sales offices in Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa and Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through 1862 Mortgage.

For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

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Ruhl&Ruhl REALTORS Celebrates Sales Growth in 2011

Wednesday, February 8th, 2012

Caroline Ruhl, President of Ruhl&Ruhl REALTORS, congratulated her sales associates and staff on an amazing 2011. “While business was down in most of our markets and at most competing real estate companies, business was up at Ruhl&Ruhl REALTORS!”

 

Ruhl credited her company’s success to her extraordinary people:  “The Ruhl&Ruhl difference is truly found in the compassion, expertise and commitment of our people, from agents to staff to management to loan officers.  You out-worked and out-smarted and out-serviced the competition.  At the end of the day, it always comes down to having the best people.  Thank you for your wonderful service, your hard work and your loyalty.”

The company also celebrated their 150th birthday.  The Ruhl family has been helping other families in the region since 1862.  “With our 4th and 5th generations of family ownership and leadership, we look forward to serving the people and communities we love for many generations to come,” commented Caroline Ruhl.

The company celebrated at an awards brunch at the Waterfront Convention Center in Bettendorf. They honored and recognized 173 award winners for their 2011 achievements.

 1.            Growth in Number of Properties Sold

Ruhl&Ruhl REALTORS sold 4,360 properties in 2011, as either listing agent or selling agent. 

This was 6.8% more transactions than in 2010. 

 In the Quad Cities MLS (Multiple Listing Service), 2% fewer properties were sold in 2011 than in 2010.

2.            Sales Volume Up 7.3%

Ruhl&Ruhl REALTORS’ sales volume in 2011 was $593,082,327, 7.3% higher than sales volume in 2010.

Residential sales volume was down 4% in the Quad Cities MLS.

 3.            Properties Listed Up 4.3%

Ruhl&Ruhl REALTORS sales associates listed 3,317 properties for sale in 2011, 4.3% more than they listed in 2010.

4.            More Great Sales Associates and Staff

While the number of agents went down in the 12 Boards of Realtors/MLS’s that the company belongs to, Ruhl&Ruhl REALTORS added a net of 24 sales associates, growing our agent base from 251 as of December 31, 2010 to 275 agents as of December 31, 2011.  In addition, 58 dedicated employees work for the company.

5.            Revenue Up 9.5%

 Revenue in a real estate company is primarily gross commission income, or GCI. Ruhl&Ruhl REALTORS’ 2011 GCI was up 9.5% over 2010.

 6.            29.4% of Ruhl Buyers Used 1862 Mortgage

 1862 Mortgage is Ruhl&Ruhl REALTORS’ in-house mortgage company. 29.4% of Ruhl’s buyers with financing used 1862 Mortgage during 2011.

 7.            Gains in Market Share

Ruhl&Ruhl REALTORS had 36.74% of the Quad Cities residential market in 2011, up from 33.85% in 2010. Their largest competitor, Mel Foster Co., saw market share fall from 37.44% to 34.46%, making Ruhl&Ruhl REALTORS the largest residential broker in the Quad Cities.  Market share in the Iowa Quad Cities grew from 37.5% to 41.05% for Ruhl&Ruhl REALTORS.  In the Illinois Quad Cities, market share grew from 26.4% to 27.6%.

In the Muscatine MLS, Ruhl&Ruhl REALTORS’ market share grew from 36% in 2010 to 39% in 2011. 

8.            Per Agent Productivity Among Best in the Nation

On average, Ruhl agents sold 15.1 properties per agent, as either listing or selling agents. This places Ruhl agents among the most productive in the country. The National Association of Realtors reports an average of 7 sales per agent nationally.

 9.            New Construction Sales Up 6.1%

Ruhl&Ruhl REALTORS sold 243 new construction homes or condos in 2011, up from 229 in 2010. New construction sales volume was $71,271,090 with an average price of $293,297.  New construction sales were down 20% in the Quad Cities.

 10.          Outlook for 2012

Caroline Ruhl expects 2012 to be an even better year, both for the regional real estate market, and for Ruhl&Ruhl REALTORS.

“If January, 2012 is any indication, it’s going to be a great year!  New business pended in January was up 47% in sales volume and 34% in number of properties sold at Ruhl&Ruhl REALTORS.  And revenue (closed gross commission income) was up 81% based on 69% more properties sold,” said Ruhl.

“Why is this the busiest winter market in years?  For starters, spring like weather in January works wonders for people’s attitudes and interest in looking at real estate.  Then factor in the lowest interest rates in history – 3.875% for 30 years, no points and 3.375% for 15 years, no points.  And finally some good news on the unemployment front, so buyer confidence is improving.  We’re actually seeing multiple offers again and a shortage of listings in some price ranges and locations.  My advice is refinance if you haven’t already done so and invest in residential real estate.  We see strong growth potential in our property values and tremendous demand for rentals.”


Ruhl&Ruhl REALTORS Congratulates 2011 Award Winners

Ruhl&Ruhl REALTORS honored and recognized 173 award winners for their 2011 achievements at the Waterfront Convention Center on Friday morning, February 3, 2012.  The top honors were awarded to:

Top Residential Associate of the Year: Quadruple Diamond Club – Jon Loquist, Moline Office

Top Excellence in Service Award: Melissa Wegener, Davenport Office

Extraordinary Production Award: Janet Munck, Clinton Office

New Associate of the Year: Craig Newcomb, Bettendorf Office

Top Associate of the Year – Farm Division: Ken Paper, Davenport Office

Employee of the Year: Sally Atwell, Executive Assistant, Corporate Office

Top 1862 Mortgage Associate of the Year: Ray McDevitt, Bettendorf Office

Top Insurance Referral Agent: Rick Weipert, Bettendorf Office

There is a complete list of all award winners on Ruhl&Ruhl’s website at
www.RuhlHomes.com/Agent-Achievements.

A family-owned company since 1862, Ruhl&Ruhl REALTORS has grown to more than 275 sales associates, 58 employees and eleven offices, selling more than 4,300 homes in eastern Iowa, western Illinois and southwestern Wisconsin. The company has residential sales offices in  Bettendorf, Burlington, Cedar Rapids, Clinton, Davenport, DeWitt, Dubuque, Iowa City, Maquoketa and Muscatine, Iowa; and in Moline, Illinois. In addition to residential sales, the company offers services in relocation, property management, real estate investments, new home sales, land development, farm sales, senior services, home vendor services, insurance services through the Nelson Brothers Agency and mortgage services through 1862 Mortgage.

For more information on Ruhl&Ruhl, visit their website at www.RuhlHomes.com.

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Iowa housing market stable

Wednesday, January 25th, 2012

The Iowa Association of Realtors is reporting a glimmer of positive news in its annual 2011 Housing Trends Report, out this month.

It says home sales were up statewide in December, for the fifth consecutive month, and steady throughout 2011.

Rob Cook is a realtor for Ruhl&Ruhl REALTORS in Dubuque, a real estate blogger and self-proclaimed “numbers guy.”

He pulled statistics from the Federal Housing Finance Agency (FHFA), showing Dubuque is number two in the nation when it comes to high rates of house appreciation.

Those numbers show the average home in Dubuque appreciated 2.46 percent in one year, through Sept. 2011, and 8.06 percent over the course of five years. Bismark, N.D., by the way, took top marks, with a 15.99 percent five-year average appreciation.

In Dubuque, Cook said, “our average sale price right now is about $155,000, give or take, and we’ve sold just shy of 800 homes in each of the last three years in the Dubuque city: zip codes 52001, 52002, 52003.”

A map of the US from the FHFA shows each state’s average home value appreciation over the course of 12 months, from the third quarter of 2010 to the third quarter of 2011.

“The whole state’s doing relatively well compared to the rest of the country,” Cook said.

Iowa is only one of four states that didn’t experience depreciating home values. The average Iowa home over the course of that period went up 1.3 percent in value, according to the FHFA. The average Nebraska house appreciated 0.5 percent, Wyoming saw a 2.9 percent increase and North Dakota came in first place, with a 5.4 percent increase.

“When you buy a house, buy a car, buy a boat, there’s always a risk that it’s going to depreciate or not appreciate like you had planned,” Cook said.

Iowa, he said, on average, has a stable housing market.

Mel Graves is a realtor with Brissey in Dubuque and secretary and treasurer of the Dubuque Board of Realtors.

He pointed out 2011 was the first year without any tax credit incentives for home buyers, “so this is a pure year, this is just market-driven,” he said.

Graves said he has noticed a slight increase in consumer confidence.

“It seems to me that people are now beginning to say, ‘I need to make that decision I’ve been holding off on, I am comfortable that my job’s going to be there, and I’m going to go ahead,’” Graves said. “That’s significant. When they can do that, then they can go ahead and make some plans.”

He said insurance rates continue to be low, which is encouraging for buyers.

The total number of home sales in Iowa for 2011 increased 0.4 percent from 2010.

Regardless of state or national housing market numbers, however, Cook suggests buyers and sellers look at their own particular market.

“They need to be fully aware of what’s going on in their market and not pay attention so much to the national news, you know, as far as, you know, both real estate thing and the economy overall,” Cook said. “It’s a factor, but, you know, it’s kind of like what they say with the realtor ads, you know, ‘All real estate is local.’”

The Iowa Association of Realtors said, as of December, the average days on the market for a house in Iowa was 112. That’s the same as it was in 2010, according to the association.

Ruhl&Ruhl REALTORS completely supports Rob’s statement and so do the numbers! Check out our latest Facts&Trends edition coming out the first week of February.  If you would like to recieve Facts&Trends please visit RuhlHomes.com.

Article provided by: KWWL.com

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America’s Top 10 States For Business in 2011

Friday, January 20th, 2012

Let’s face it, in these economically trying times going to a state that is conducive for conducting business is vitally important. If you are looking for work it does not make a great deal of sense going to a state that hinders a businesses ability to succeed.

Likewise, buying a house in a good business environment makes a lot more sense than doing so where businesses will be struggling. So if you are thinking of moving to a state that is favorable for business this list by CNBC is a very smart tool to use.

Virginia came in as the top state. With it’s pro-business state house and proximity to Washington DC, where growth in government spending has created it’s own jobs engine, Virginia is for business lovers. Texas is in second place, with southern states Georgia, North Carolina, and Colorado rounding out the top 5. The only northeast member of the list Massachusetts comes in 6th owing mainly to it’s educated workforce.

The remaining states on our top 10 list are heartland states; Minnesota, Utah, Iowa, and Nebraska. The worst state in the country is Rhode Island with Alaska not far behind.

So if you are starting a business, looking for a job, or interested in investing in real estate, check out this list of the …

Top 10 States for Business in America for 2011

  1. Virginia
  2. Texas
  3. North Carolina
  4. Georgia
  5. Colorado
  6. Massachusetts 
  7. Minnesota
  8. Utah
  9. Iowa
  10. Nebraska

Keep checking RuhlHomes.com for the most up to date information on the housing market.

Originally Published by: RealEstateBloggers.com

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Funds Available for Military Homebuyers in Illinois

Wednesday, January 18th, 2012

A new financing package is being offered to help all qualified Illinois veterans, active military personnel, reservists and Illinois National Guard Members with the purchase of a home.

The financing package, Welcome Home Heroes, through the Illinois Housing Development Authority provides qualified veterans or active reservists a $10,000 forgivable loan over two years for down payment and closing cost assistance, 30-year fixed rate mortgage that has an affordable interest rate and an optional mortgage credit certificate to reduce federal income tax liability.

“This is a great program that all service personnel should take advantage of,” said Jane Schneider, President of 1862 Mortgage, an IHDA approved lender offering the package. “Time is of the essence, as only $10 Million total is available.”

The Welcome Home Heroes financing package is designed to assist qualified Illinois veterans, who do not need to be first time homebuyers, and active military personnel, reservists and Illinois National Guard members, who must be first time homebuyers.  All buyers must qualify based on income and purchase price limits, and the home must be purchased as their primary residence within the state of Illinois.

 Interested buyers please contact 1862 Mortgage loan officer, McKenzie Mathews, for additional information at 309.743.8060 or McKenzie.Mathews@1862Mortgage.com.

 1862 Mortgage has partnered with Ruhl&Ruhl REALTORS to offer a convenient one-stop experience for both home buying and home financing needs nationwide. 1862 Mortgage is a DBA (Doing Business As) of Shelter Mortgage, an operating subsidiary of Guaranty Bank. As part of a strong and stable bank, 1862 Mortgage offers the promise of longevity and security along with a commitment to service excellence.

A family-owned company since 1862, Ruhl&Ruhl REALTORS annually sells nearly 3,800 homes in eastern Iowa, western Illinois and southwestern Wisconsin and is the largest privately-owned real estate company in Iowa. Headquartered in Davenport, Iowa, the company has 280 sales associates and 50 employees based in 11 sales. In addition to residential sales, Ruhl&Ruhl REALTORS offers services in relocation, new home sales, farm and land sales, senior services, real estate investment, mortgage services through 1862 Mortgage and insurance services through the Nelson Brothers Agency.  For more information on Ruhl&Ruhl REALTORS, visit their website at www.RuhlHomes.com.

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Comparing Real Estate To Other Investments

Thursday, January 5th, 2012

Since the subject of comparing real estate to other investments has come up, via Keeping Current Matter’s article in Real Estate Magazine.  Ruhl&Ruhl Realtors would like to take a closer look. There are two major advantages to investing in a home of your own rather than another option:

You Can’t Live in Your IRA

When you buy your own home you are not taking available dollars away from another investment. You are replacing one housing expense (rent) which has no potential for a return on investment with another (mortgage payment) that does give you an opportunity for a return. We realize that there has been research showing that over the last 30 years renting has been less expensive than owning. That research also says that if you invested the entire difference between the rent payment and mortgage payment you may have done better financially.  There are two challenges with this conclusion:

  1. Today, in the vast majority of the country, renting is actually more expensive than owning a home.
  2. History has proven that tenants DO NOT invest the difference in their rent and mortgage payments.

Today, study after study shows that owning a home is no more expensive than renting a home. However, even if this wasn’t the case, history shows that owning a home creates greater wealth.

Paying a mortgage creates what financial experts call ‘forced savings’. The Joint Center for Housing Studies at Harvard University released a study earlier this year titled America’s Rental Housing: Meeting Challenges, Building on Opportunities. In the study, they actually quantified the difference in family wealth between renters and homeowners:

“[R]enters have only a fraction of the net wealth of owners. Near the peak of the housing bubble in 2007, the median net wealth of homeowners was $234,600—about 46 times the $5,100 median for renters. Even if homeowner wealth fell back to 1995 levels, it would still be 27.5 times the median for renters.”

There Are Tremendous Tax Advantages to Investing in a Home

There is no doubt that selling an investment such as gold is easier than selling your home. However, this liquidity comes at a price. The price is called capital gains. That is the tax you pay on any financial gain you receive from the investment. This tax doesn’t apply the same way when you sell your primary residence:

Theresa Palagonia, a CPA and the Accounting Manager for the firm G.S. Garritano & Associates, was good enough to explain the Home Sale Exclusion Rules:

“You may qualify to exclude from your income all or part of any gain from the sale of your main home. 

Maximum Exclusion

You can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true:

  • You meet the ownership test.
  • You meet the use test.
  • During the 2 year period ending on the date of the sale, you did not exclude gain from the sale of another home.

If you and another person owned the home jointly but file separate returns, each of you can exclude up to $250,000 of gain from the sale of your interest in the home if each of you meets the three conditions listed above.

You may be able to exclude up to $500,000 of the gain on the sale of your main home if you are married and file a joint return and meet the requirements. (Special rules apply for joint returns.)

Ownership and Use Tests

During the 5 year period ending on the date of the sale, you must have:

  • Owned the home for at least 2 years, and
  • Lived in the home as your main home for at least 2 years

Certain exceptions exist in which you may qualify for the exclusion without satisfying the tests listed.”

Bottom Line

Every investment has pros and cons. That is why there is such an assortment of great opportunities. Real Estate has been, is and always will be one of those opportunities.

Keep checking RuhlHomes.com for the most up to date information on the housing market.

Information and Stats provided by: KCM Magazine

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One in Five Baby Boomers Gifting or Loaning Money to Children or Grandchildren to Help Buy Homes

Wednesday, December 28th, 2011

A national survey commissioned by Better Homes and Gardens® Real Estate has found that baby boomers are part of a growing trend in which they are helping their children or grandchildren become home buyers.  According to the survey, one in five baby boomers have already gifted, loaned or co-signed a loan to support their children or grandchildren in purchasing a home, and more than two-thirds of baby boomers want to provide this type of support in the future.

“With historically low interest rates and competitive listing prices, now is a great time to invest in real estate for those in a position to do so.  However, in today’s economy saving money for a down payment can be a struggle for young adults.  Baby boomers are a unique generation that has driven the economy for the past 30 years.  Our data shows that they are using what they’ve earned and what they’ve learned to invest in the future and help their children and grandchildren realize the American Dream of Homeownership”, notes Sherry Chris, CEO of Better Homes and Gardens® Real Estate, LLC.

Aside from the good investment rationale, baby boomer respondents cited that the willingness to provide financial support to their children and/or grandchildren was out of love.  By providing financial support to assist in the home buying process, respondents stated that they could ensure their children and/or grandchildren would benefit from their estate and fulfill a large part of achieving the American dream.

Key findings from the baby boomer survey include:                                              

  • One in five baby boomers have already gifted, loaned or co-signed a loan to their children or grandchildren for a down payment on a home.
  • Looking ahead, one in 10 baby boomers say they will “defiantly” provide their children or grandchildren with financial support for a down payment on a home, and at last half hope to do so.
    • In total, more than two-thirds (68%) of all baby boomers said they want to provide future financial support for their children or grandchildren to purchase a home.
    • Those who have already provided past support are also most confident that they will do so again.
    • Highest interest in providing support is reported among younger (age 45-54), more affluent (household income of $75,000+) baby boomers who have at least one adult child (age 18-34).
    • Baby boomers are driven to provide financial support primarily by their belief in the overall investment value for them and/or their children or grandchildren, and the role homeownership plays in fulfilling the American dream.
    • Older (age 55+) and more affluent ($100,000+ household income) baby boomers are more likely than their younger or less affluent counterparts to have previously provided financial support.
    • Across prior support and future interest, baby boomers show more interest in “gifting” or loaning money; they are least interested in co-signing loans.

 

Again, the importance of homeownership goes much further than the economy; it is still all about establishing and maintaining that American dream.

To read further on this topic please visit the Better Homes and Gardens® real estate blog and for the most current information on the housing market, keep checking RuhlHomes.com.

Some information and stats provided by Better Homes and Gardens®.

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