Huntington Beach Real Estate News

TO PEOPLE…

1. Home owners are happier and healthier and enjoy a greater feeling of control over their lives.

2. Owning a home is one of the best ways to build long-term wealth. Historically, a home owner’s net worth has ranged from 31 to 46 times that of a renter.

3. Home owners are free to redecorate, renovate, and modify their homes as they wish.

4. Most home owners enjoy stable housing costs—a fixed-rate mortgage payment might not change for 15 to 30 years while rent typically increases 3% a year.

5. Home owners can typically deduct mortgage interest and property taxes on their federal individual income tax return.

TO COMMUNITIES…

1. People who own homes vote more, volunteer more and contribute more to their neighborhoods.

2. Home owners do not move as frequently as renters, providing more neighborhood stability. In turn, this stability helps reduce crime and supports neighborhood upkeep.

3. Children of home owners do better in school, stay in school longer, are more likely to participate in organized activities and spend less time in front of the television.

TO AMERICA...

1. 67% of American households are owner-occupied. America is a nation of home owners.

2. Home owners pay 80 to 90% of federal individual income taxes, contributing to federal programs that benefit all Americans.

3. Every home purchased pumps more than $60,000 into the economy for furniture, home improvements and related items.

4. Housing accounts for more than 15% of the national Gross Domestic Product, a key driver of our national economy.

For these reasons and more, home ownership is the American Dream!

· In the past 12 years, the net worth of the typical home owner has ranged between 31 and 46 times that of the net worth of the typical renter.

· Home owner equity is a substantial component of home owner wealth. The Federal Reserve's Survey of Consumer Finances, conducted once every three years, provides a snapshot of family income and net worth along with basic demographic details and more detailed information on where families keep the wealth they have accumulated.

· The most recent survey, concluded in 2007, offers a picture of the situation before home price declines and the tumbling equities market hit household balance sheets. At that time, median home owners had well over $200,000 in net worth or 46 times that of the median renter who had just over $5,000. Furthermore, $200,000 was the median value of owners’ homes.

· Looking at aggregate data, the National Association of Realtors® estimated the impact for renter and home owner households through mid-2010 taking home price and stock market performance into account. The result suggests that despite declines in equity and housing markets, homeowners have a net worth orders of magnitude greater than renters.

· How has the recovery of the stock market and a sluggish housing market affected owners and renters? For the first time ever, the Federal Reserve resurveyed the 2007 participants in 2009 to directly measure how the crisis and recession affected their finances. These results are expected later this year.

Thank you,

Alan Adamo
Westline Real Estate
(714) 726-5429
www.westlinerealestate.com