Tag Archives: American Dream

NOW is the Time to Buy a Home!


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Now is the perfect time to buy a home!  Inventory is still high and rates are still low.  Buying a home is the American Dream, and it’s the right time to wake up and speak with a financial specialist and a professional real estate agent, me.  I also have terrific mortgage partners, if you don’t have one.  🙂

Naysayers Agree.. Buy Now!

Here’s a great article from The KCM Crew and their blog post, entitled “Even the Naysayers are Saying to Buy Now!”  Read what they blogged below:

Rent or Own?

Business School professors Eli Beracha of East Carolina University and Ken H. Johnson of Florida International University have done extensive research on which makes more sense financially: to rent or own a home. They published, Lessons from Over 30 Years of Buy versus Rent Decisions: Is the American Dream Always Wise?  In their paper, the professors do not dispute the social benefits of homeownership:

“Home ownership is touted as the “American Dream”. It is credited with enhancing wealth, increasing civic pride, improving self-esteem, crime prevention, child development, and better educational outcomes, among other benefits. This paper does not dispute any of these claims.”

What the professors were proposing is that homeownership is not a better investment strategy than renting. The first of the two major findings was:

“After setting the holding period to the average American’s tenure in a residence, renting (not buying) proves to be the superior investment strategy over most of the study period… Individuals, on average, were better off in economic terms to have rented for most of the years in the study period. This first result is strongly dependent upon fiscally disciplined individuals that, without fail, reinvest any residual savings from renting.”

Historically, people do not actually reinvest savings “without fail”.  Check here for the findings of a recent study from The Joint Center for Housing Studies at Harvard.

The second major finding says it all. According to both professors Beracha and Johnson, NOW IS THE TIME TO BUY!

“(F)undamental drivers now appear to be in place that favor homeownership over renting in the near term future…

The second finding might seem unwise to many given the recent crash in the real estate markets around the country. However, rent-to-price ratios now seem to be in place along with other fundamental drivers that favor ownership over renting.”

They conclude their research paper with this sentence:

“Conditions (historically low mortgage rates and relatively low rent-to-price ratios) now seem in place to favor future purchases.”

Bottom Line

Two researchers set out to prove that homeownership is not a good financial decision. After completing that research, they have determined that now is the time to buy. What more needs to be said?

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Got Credit? Why Shoud I Have It?


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Why?

There’s a great need to build credit in this country, especially if you’re considering buying a home or making other large purchases.  If you don’t have credit or if you need to rebuild it with credit repair, I hope this post will be a great reference point.  To prove credit worthiness, consumers and young people should build their credit over time to qualify for larger loans in the future and to also show that they are responsible debt payers.  In other words, if you don’t have credit, lenders won’t know if you’re a good customer.  When you prove your credit worthiness, the result is high credit scores.

 Who?

Who needs to have credit?   Everyone of legal age, especially young adults who are beginning to have more financial responsibilities and  U.S. immigrants who have no credit history at all need to establish credit.  When the time arises, such as a major need or emergency, solid credit will help you be able to qualify for what you need.  You certainly need to have solid credit to buy a home.  It’s the American Dream and the single most biggest purchase you will make, so build it!

How?

It is actually pretty easy to build credit.  Try one of the following ideas:

  • Ask your bank or credit union about a secured credit card.  You can make a deposit to your account and have a credit limit in the amount of your deposit.  The bank takes little risk and you build credit slowly (avoid Secured Credit Card Problems).
  • Use a co-signer on your first few credit accounts.  Lenders will consider the co-signer’s existing credit.  The co-signer essentially ‘vouches’ for you while you build credit.  Note that this is a big responsibility – you can cause major headaches for the co-signer if you don’t pay as agreed (see How Co-Signing Works for details).
  • Use retailer programs for modestly large purchases like furniture.  For example, you may buy a television on the “$40/Month Payment Plan”.  Gas station cards may work as well.  These programs can be easier to qualify for and they certainly help you build credit.  Be sure that the retailer will report your loan to the major credit reporting companies.
  • Get a credit card with any reputable institution that will give you one.  Again, you have to make sure they’ll report your timely payments to the credit reporting companies.  Of course, you have to always pay at least the minimum before the due date.

Please, please be careful after you start to build your credit.  It can lead to trouble!  Make wise decisions when it comes to purchases and “enticing” credit card deals.  Credit card companies, banks, and retail institutions may inundate you with offers so please use good judgement.  Also, monitor your credit reports for correct information and to remove any errors.  However, in case you do get into trouble, there are ways to improve it and get your life back on track.  In my opinion, these days, credit is like a life-line so in a future post, I will discuss repairing credit and other related information.  Thanks for reading my thoughts.


Storms? What about the kids…


Large, violent tornadoes can cause catastrophi...

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Natural Disasters Can Cause Anxiety in Children

A little over a week ago, terrible tornadoes hit all over the state of North Carolina.  Many of them affected the Triangle area, even my very own neighborhood.  Friends and family were displaced, lost homes, had minor to major damage, but most of all, in my opinion, the greatest impact was on the children in each household.

Where am I going with this?  Know this quote? “A house is built with boards and beams; a home is made with love and dreams.”  Well, home ownership is the American dream, and we buy with the intent to stay in our home for a very long time with our loved ones ~ our family, our children.  Sometimes, natural disasters, just like the ones we had in our area a week ago, affect our home, but can be traumatic to those we love.

I’m a mother of three children, 2 girls (Lorin and Logan) and a boy (Jonathan), all under the age 12.  Naturally, in my household just the mention of the word “storm” sends them into a frenzy.  They get clingy, nervous, and very anxious.  Usually, two of them (if not all) end up in my bed. Like I said earlier, when a storm is mentioned on the news, my middle girl becomes a nervous wreck.  “Is it coming here?  When?  Watch or warning?  Lightning or just rain?”  We try our very best to distract her with games and chit chat, but at the same time, remind her of the noises she may hear.  That helps her a lot!

What about when you can’t prepare your family for a tornado or storm? You can help your children through the emotional distresses after natural disasters by remaining as calm as possible and reassuring them that everything will be alright.  Kinda hard to do, I know!  We were hit too, but, fortunately, we were spared from damage to our home.  However, it’s a day my kids and husband will never, ever forget.  I won’t either!!  The sounds, the wind, the flying debris, the pressure from the wind was terrifying!

In the confusion and frustration of repairing and rebuilding, please remember to pay attention to distresses in your kids as well.  Some signs to look for include thumb-sucking, bed-wetting, nightmares,  fear of the dark, loss of appetite, and so on.  As parents, by nature we put our children first, but please don’t forget about yourself and seek the support you need.

That’s all for this blog.  I truly hope that you’ve found it helpful.  Thanks for your support of our future ~ our children.


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