Tag Archives: family

All The Single Ladies . . . Buy Houses

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house-insurance-419058_1920

Realtor.com quote me in More Single Women Hunt for Homes, Not Husbands. It reads, in part,

Alayna Tagariello Francis had always assumed she’d marry first, then buy a home. But when she found herself footloose, free, and definably single in her early 30s, she decided to make a clean break from tradition: She started home shopping for one.

“After dating for a long time in New York City, I really didn’t know if I was going to meet anyone,” she says. “I didn’t want to keep throwing away money on rent or fail to have an investment because I was waiting to get married.”

So in 2006, Francis bought a one-bedroom in Manhattan for $400,000—and was surprised by how good it felt to accomplish this milestone without help.

“To buy a home without a husband or boyfriend wasn’t my plan,” she says, “but it gave me an immense sense of pride.”

It’s no secret that both men and women are tying the knot later in life. A generation ago, statistics from the Census Bureau showed that men and women rushed to the altar in their early 20s; now, the median age for a first-time marriage has crept into the late 20s—and that’s if they marry at all.

The surprise is that even though today’s women still make 21% less than men, more single women than men are now choosing to charge ahead and invest in a home of their own. It’s changing the face of homeownership in America.

And while that decision to buy can help build wealth and ensure financial stability, plenty of women are finding the road from renter to owner is filled with unforeseen obstacles—and plenty of soul-searching.

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Why women shouldn’t wait

But then again, few of us have fully operational Ouija boards we can pull out of storage to pinpoint exactly when our ideal significant other will arrive on the scene. So putting house hunting on pause is something fewer women are willing to do.

“Women today don’t sit around and wait for Prince Charming,” says Wendy Flynn, a Realtor® in College Station, TX, who has helped numerous single women buy homes. After all, Flynn points out, “The time frame for meeting your dream man, getting married, and having kids—well, that’s a pretty long timeline.” So even if you do meet The One a day after closing on your home, “you could sell your home in a few years and still make a profit—or at the worst, probably break even.” If you buy right, that is.

That said, women who do want to marry and have kids as soon as possible will want to eye their potential home purchase with that in mind. Is the new place big enough for a family? Or, if you think you’ll sell and move into a larger place once you’re hitched, how easy will it be to sell your original home—or are you allowed to rent it out?

And if you marry or a partner moves in, make sure to consult a lawyer if you want your partner to share homeownership along with you.

“You definitely should not assume that your spouse’s home is transferred automatically to you once you get married,” says David Reiss, an urban law professor at Brooklyn Law School.

Down Payment Help

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Shimer College

The Dallas Morning News quoted me in Asking for Help with Down Payment Can Often Be Difficult. It reads, in part,

How do you ask a question when no one wants to talk about the subject?

Often, it’s quite clumsily, without much effort at sparking an honest exchange.

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Before asking, hopeful buyers should investigate options, said David Reiss, a real estate professor at The Brooklyn Law School.

“You would want to press your lenders to identify all first-time homebuyer programs you might be eligible for,” Reiss suggested.

The Federal Housing Administration offers loans with low down payments, and many state housing finance agencies offer low or no-down loans to eligible buyers, he noted.

In any case, said Reiss, “It would be helpful to know your options when speaking with family members about a gift.

“They might be willing to give a smaller gift for an FHA mortgage, or they might be willing to make a larger gift if they see that it would result in lower monthly payments for your,” Reiss said.

“And the mere fact you did this type of research is evidence that you are a financially responsible adult,” he concluded.

Home and Marriage

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The Pug Father

TheStreet.com quoted me in First-Time Homebuyers Often Wait to Buy House After Marriage. It reads, in part,

The number of people purchasing their first home, especially Millennials, could be impacted negatively by shifting demographics as the median age for marriage is rising.

A recent survey by NeighborWorks America, the Washington, D.C.-based affordable housing organization, found that 43% the respondents said they intended to buy a home when they “got married or moved in with a life partner.” The median age for a first marriage has risen to 29.3 years old for men and 27 years old for women, according to the U.S. Census Bureau. In 2000, men first got married at 26.8 years old while the median age for women was 25.1 years old.

Other respondents said they would wait to buy a home when other changes occurred, with 22% who will purchase one when they have children and 18% who are still seeking their first full-time job.

Many Millennials are delaying the purchase of a home because not only are they waiting until they are older to get married, a large percentage are also saddled with a large amount of student loans. The survey also demonstrated that 57% respondents admitted that student loans were either “very much” or “somewhat” of an obstacle, a rising concern compared to 49% who expressed this sentiment in 2014.

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“The state of the economy has interfered with their ability to maintain a steady income and this has likely delayed marriage,” said David Reiss, a law professor at Brooklyn Law School. “As a result, they are less likely to become homeowners.”

What’s more, the lack of job security in the current economy has dampened many people’s enthusiasm to own a home.

“Buying a home is a big commitment to your future self and your family: ‘I will make that mortgage payment come hell or high water,’” he said. “Fewer people are going to want to make that commitment if the job market does not give them a reasonable basis to believe that they can live up to it.”

Friday’s Government Reports Roundup

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  • HUD’s Office of Policy Development and Research released paper, which describes its “Bridge to Family Self-Sufficiency” Program. The program is intended to determine if low-income families in public housing improve their overall stability, with the right support.
  • HUD released public, Affirmatively Furthering Fair Housing, which is intended to more efficiently further the purposes and policies of the Fair Housing Act.

Myths About Money

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Chase.com quoted me in 5 Myths About Your Money. It opens,

There’s no shortage of money advice out there, but each person’s financial situation is unique. So there are times when conventional wisdom can be just plain unhelpful.

With that in mind, here are five money myths that experts say deserve to be reconsidered.

Myth #1: Your Home Is Primarily an Investment

A house can be an excellent investment, but David Reiss, professor of law and research director of the Center for Urban Business Entrepreneurship at Brooklyn Law School in New York, cautions against thinking of it only that way.

After all, he says, the housing market can be hard to predict, so it’s better to make decisions based on your own needs. You’re not just owning the house; you’re living in it.

“Make decisions about buying, remodeling, and refinancing your home because it makes sense for you and your family,” says Reiss. “If you make decisions based upon your guesses about the future and about what other people will do, there is a good chance that you will end up frustrated.”

Should you upgrade that bathroom? Is it solely an investment decision? Or is there also value in improving your quality of life?