27
Dec
By First Rate Financial Group
Real Estate

4 Reasons Why Home Ownership Is Better Than Renting

4 Reasons Why Home Ownership Is Better Than RentingAre you trying to decide if you should rent or buy? There are many reasons why home ownership is better than renting. Here are just a few to consider when you’re making your decision.

1. Stability For Your Family

When you own your home, the life of your family will be more stable. If you have children, this is a an even more valuable benefit. Your kids will be able to settle down into the routine of school and extracurricular activities. They’ll be able to make lifelong friends in the neighborhood. You and your spouse will be able to feel a strong sense of community and belonging.

2. Personalization

Owning a home is better than renting because you can personalize and customize your living environment. In many rentals, you can’t even paint the walls if you want to.

When you own, you not only can paint walls whatever color you want; you can knock them down if you like! You spend so much time at home, being able to make stamp your personality on it is a huge benefit!

3. Peace And Quiet

When compared to renting an apartment, there is a lot more peace and quiet in your own home. In an apartment, walls are shared. Often, there isn’t a lot of insulation inside the walls, either. It’s likely you’ll be able to hear your neighbors, their kids or their barking dogs. When you own your home, you’ll be able to enjoy the peace and quiet you deserve.

4. Outdoor Property

When you own your home, you may have access to outdoor space in addition to your house. That property is yours to do as you wish. You could make an outdoor living area, plant a garden, install a pool or erect a badminton set. The outdoor property around your house certainly adds to the satisfaction of owning your home.

It’s likely that these four benefits will give you some reasons to pursue home ownership. Chances are you’ll never want to go back to renting again!

When you’re ready to begin the search for your next home, contact a trusted mortgage professional in your area to get your financing pre-approved!

26
Dec
By First Rate Financial Group
Real Estate

FOMC Raises Key Rate, Forecasts 2 Rate Hikes in 2019

FOMC Raises Key Rate, Forecasts 2 Rate Hikes in 2019During its post-meeting statement, the Federal Open Market Committee of the Federal Reserve announced that its target range for the Fed’s key interest rate would increase one quarter percent to 2.25 to 2.50 percent. While this rate hike was not expected by the Executive branch, it met analyst expectations.

FOMC said in its customary post-meeting statement that members expect to make two interest rate hikes in 2019 as compared to three rate hikes in 2018 and the Committee’s original forecast of three rate hikes in 2019. Given current economic conditions, the Fed forecasted only one rate hike for 2020.

Hawks And Doves: Federal Reserve Leaders Differ On Interest Rate Projections

Six FOMC members indicated support for three rate hikes in 2019 and the FOMC statement cited a need for future interest rate hikes while some economists expected that no mention of potential rate hikes would be included in the statement. Fed Chair Jerome Powell said, “Policy at this point does not need to be accommodative. It can move to neutral.”

FOMC’s statement cited “cross currents” impacting the economy, but expects “solid growth next year, declining unemployment a healthy economy.” The Fed specifically listed strengths in labor markets, household spending and a healthy economy influenced the committee’s decision to raise the Fed’s benchmark interest rate range.

Recent volatility in global affairs and the economy prompted FOMC to say that they would be reviewing ongoing global economic and financial developments and assess their implications for the global economic outlook.

Fed Chair Jerome Powell: “Fed Is About To Embark On A Delicate Balancing Act“

Chairman Powell said that current economic conditions have helped the Fed meet its dual mandate of maintaining maximum employment and stable economic growth, for which the Fed has set a benchmark of two percent annual growth for inflation. Current inflation is lower than expected and unemployment is near record lows. The Fed faces balancing interest rate increases with closely monitoring economic “cross currents”.

Chairman Powell said the Fed expects the median rate of economic growth to slow to 2.30 percent in 2019 as compared to 2018’s rate of 3.00 percent. The National Unemployment rate is expected to fall from its current rate of 3.70 percent to 3.50 percent by the end of 2019. Mr. Powell said that no course of action is predetermined and that Fed leaders will monitor economic and global developments on an ongoing basis.

 

21
Dec
By First Rate Financial Group
Real Estate

Big Cities vs. Secondary Markets: Where to Buy?

Big Cities vs. Secondary Markets Where to BuyAtlanta, Charlotte, New York and Los Angeles are always on the real estate radar because of big ticket sales and good media coverage. The secondary markets – those markets without the celebrity undertones – may actually be better deals. With the price of borrowing money rising and occupation rates dropping in primary markets, places like Nashville and Birmingham are looking better to investors.

Where Are the Secondary Markets?

A secondary market is generally defined as a mid size or large city that has recorded an uptick in growth in the immediate past. They do not have quite the economic clout or media presence of a primary market, although they may rival each other in terms of population.

Generally, the influx of new attention for a secondary market will be from young professionals. These are people who are upwardly mobile and seeking new forms of skilled employment. This is what has driven the markets of cities like San Antonio, San Jose, San Diego, Phoenix and Philadelphia to new heights in recent years.

What Do Experts Think?

Experts believe that primary markets have topped out for the time being. With occupancy rates dropping from highs in the lower 90 percentiles, primary markets are just too saturated for their own good. Landlords in these areas are more unwilling to lower rents in these areas, because there are usually more high income earners established there who want to stay in the area to keep a legacy job or maintain a family.

Rising real estate prices and interest rates also put the primary housing market out of the reach of many outsiders. Researchers have found that doing real estate business in a secondary market can provide an investor with a 16% premium. The cost of real estate itself is around 38% lower. So are the costs of maintaining a property (energy costs 22% lower; labor costs 14% lower).

The New Primary Markets?

With respect to income, secondary market housing prices are up to 45% more affordable. Individuals notice this, and so do commercial investors and developers. This is why the mad rush to cities like Phoenix and San Diego will be red hot for the next few years, say investors, even in relation to established cities like Los Angeles and New York.

No matter where you are looking to purchase your new home, it is essential that you rely on your trusted mortgage professional to explore your financing options. Finding out how much you can afford can be a key element in deciding which market could be the best fit for you.