Tag Archives: renting

Ameritech Financial on Renting Versus Buying a Home and the Impact on Student Loans

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Rohnert, CA – June 29, 2018 (PRNewswire) In 2015, a study of 1,427 adults revealed 41 percent of college-educated Americans with student loans have postponed buying a home because of their debt. However, being able to rent or buy a home does not have to depend on student loan debt. Ameritech Financial, a document preparation company that helps federal student loan borrowers apply for repayment programs, can assist borrowers in applying to reduce their student loan payments and help free up room in their budget for other financial goals.

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A recent study from Zillow reported that student debt has an insignificant effect on your probability of homeownership, as long as you graduate with at least a bachelor’s degree. Jamie Anderson, a staff writer at Zillow, writes about a scenario based on a 33-year-old married couple with children. Let’s say this couple has a master’s degree and no student loan debt; the probability of them owning a home is at 80 percent. Now, give the couple $50,000 in student loan debt and the probability of homeownership drops only 5 percent. What about when it comes to renting?

“Renting versus buying is a hot topic today, and it is not only based on our nation’s economy,” says Tom Knickerbocker, Executive Vice President of Ameritech Financial. “People are unsure about their debt and focus on a narrative surrounding rising loan amounts and stagnant income, and this is why looking into an income-driven repayment plan can be so necessary.” According to Anderson, “If there was a clear relation between student debt and homeownership, we would expect to see more renter households. But we don’t. For households with degrees, the proportion of buyers to renters remains relatively constant at varying levels of student debt.”

While the numbers suggest that buying rates are not down too far for student loan borrowers, individuals may still hesitate to take the leap to homeownership. Those who worry that their student loan payments are too high to support a mortgage payment may wish to look into applying for federal income-driven repayment plans that base their monthly payments on income and family size.

“Nobody should feel like they have to choose between renting, buying, or paying off student loans,” says Knickerbocker. “At Ameritech Financial we help our clients look into repayment options so they can understand their situation and apply for a program that makes sense for them.”

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional Customer Service.

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To learn more about Ameritech Financial, please contact:

Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
media@ameritechfinancial.com

Better off Renting? BH&J Buy vs. Rent Index Shows Renters Create More Wealth than Buyers in Many U.S. Housing Markets

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Boca Raton, FL – June 6, 2018 (PRNewswire-USNewswire) With housing markets around the U.S. nearing the peak in their cycles, renters who reinvest their money have an increasingly better chance at creating wealth than individuals who purchase a home, according to the latest national index produced by Florida Atlantic University and Florida International University faculty.

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This marginal move in the Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index shows an increased possibility of significant price retractions in many metro areas around the country, while other markets’ pricing can be expected to remain stable based on their index scores.

“On the heels of information concerning slowing housing starts, rising mortgage rates, decreased demand and unsustainable price increases, these numbers provide additional evidence that housing markets around the country are slowing, resulting in many to opt for renting,” said Ken Johnson, Ph.D., a real estate economist and one of the index’s creators in FAU’s College of Business.

Of the 23 separate metro areas in the BH&J Index, many are nearing the top of their current housing cycle, meaning they are above their long-term pricing trend. These cities include Atlanta, Denver, Dallas, Honolulu, Houston, Kansas City, Los Angeles, Miami, Minneapolis, Pittsburgh, Portland, San Diego, San Francisco, Seattle and St. Louis.

Other cities are below their long-term pricing trend — meaning buying and building equity is the superior option — including Boston, Chicago, Cincinnati, Cleveland, Detroit, Milwaukee, New York and Philadelphia.

The biggest contributor to the rising cost of ownership is rising house prices, said Eli Beracha, Ph.D., co-creator of the index and associate professor in the Hollo School of Real Estate at FIU.

“The current scores driving the markets in the direction of renting and reinvesting appear to be the results of higher mortgage rates, increase in returns, on average, in the stock market, and the cost of ownership, which includes your mortgage payment, taxes, insurance, maintenance, etc.,” Beracha said. “All of these costs are rising faster than the cost of renting a comparable property. Therefore, renters who take the money they’re saving each month and reinvest it are going to build wealth faster than those who buy a home, on average.”

The BH&J Index is published quarterly and is produced two months after the end of the quarter.

Rising Rents Push Millennials to Become Homeowners

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– Realtor.com® survey reveals who’s looking to buy and what they want

– Forty-four percent of all respondents are looking for a three-bedroom home; 93 percent want at least two bathrooms

– Twenty-three percent of millennials reported rising rent as a trigger for their purchase

– More than 20 percent of 55+ buyers said privacy was the top goal for their purchase; 17 percent of millennials said fulfilling family needs

Santa Clara, CA – March 30, 2018 (PRNewswire) This year, the typical spring buyer is on the hunt for a three bedroom, two bathroom home with a garage and up-to-date kitchen, according to a new survey released today from realtor.com®, a leading online real estate destination. The survey also revealed family needs and rising rents are motivating millennials to get into the market, while 55+ buyers are looking for privacy and comfort in their new home.

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“Although record-low inventory and high prices make this housing market unique, some classic features still top most shoppers’ wish lists,” said Danielle Hale, chief economist for realtor.com®. “At the same time, we found some clear differences in priorities. For instance, older buyers are concerned with privacy and being able to age comfortably, while millennials place more emphasis on family needs, stability, and personal expression.”

Based on online survey of more than 1,000 active buyers conducted in early March by Toluna Research, the survey provides insight into both the most sought after homes as well as the motivations underpinning what shoppers are looking for.

Majority of buyers want space, multiple bathrooms, and a garage
The survey found many commonalities among homebuyers of all ages. In fact, 44 percent of all respondents said they are looking for a three-bedroom home and 93 percent of respondents want at least two bathrooms. Additionally, 27 percent of all buyers rate a garage as one of the most important home features, ahead of an updated kitchen, 24 percent, and open floor plan, 20 percent.

Older Buyers Want Privacy & Comfort; Millennials Favor Family & Self-Expression
According to the survey, more than 20 percent of buyers 55 years and older said that privacy – having a space solely of their own – was their main goal for purchasing a home. That was followed by their motivation for physical comforts at 18 percent and stability, at 15 percent.

By contrast, family needs took precedence for younger buyers. Fulfilling family needs took the top spot for millennial buyers, at 17 percent, followed by stability at 14 percent and personal expression at 13 percent. Only 12 percent of buyers younger than 55 cited privacy as their chief priority. Only 9 percent of 35- to 54-year-old buyers and 6 percent of 55+ cited personal expression as a main goal for purchasing a home.

For Millennials, the Rent is Too High
Twenty-three percent of buyers between 18 and 34 years old reported rising rent as a trigger for their desire to purchase a home – more than any other option. This corresponds with steep increases in rents across the country in recent years, especially in many high-cost urban areas that have become magnets for millennials. HUD data shows that rents were up in 85 of the top 100 metro areas, including 9 metros where rents were up by double-digit percent from a year ago.

Millennials Like Contemporary and Colonial Homes; Older Buyers Prefer Ranches
Among millennials who expressed a home-style preference – 11 percent didn’t – contemporary and colonial homes took the top spots, each favored by 10 percent of respondents. On the other hand, ranches are the most popular home style for buyers 55 and older, favored by 28 percent, followed distantly by contemporary homes at 12 percent. Only 6 percent of millennials favor ranch homes.

For the full results, please visit: www.realtor.com.

Information about realtor.com®’s 2017 home buyer preference survey is available here: news.move.com

About realtor.com®

Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

Contact:

Lexie Puckett Holbert
lexie.puckett@move.com