BOA Report: Homeownership Makes People Happy -- the timeless importance of owning your own home

by Diana Fahmie

I'm not sure about anyone else, but growing up as a young child in the 70's and 80's, I was a huge "Little House on the Prairie" fan. I watched the show, I read the books, I was obsessed. . . So, what does this have to do with the new Bank of America report on how homeownership makes people happy?!

The 2019 Fall Homebuyer Insights Report found some interesting facts about today's homeowners -- facts that, I believe apply to all homeowners throughout the ages. Including back to Walnut Grove, Minnesota in the 1870's.

Here are some fast facts from the recently published report:

• 93% of the homeowners surveyed say they are happier owning vs. renting

• 79% of those surveyed say homeownership makes them a better person

• 76% of respondents said since buying a home they have pursued activities such as landscaping/gardening and cooking/baking

• 67% say their relationships with family and friends has changed and that homeownership has given them a sense of pride and allowed them to bring the entire family under one roof

In addition to those facts from the Bank of America Report, here are some other benefits of owning vs. renting right 'now':

• Rental rates are subject to market fluctuations and landlord whims - As a homeowner your mortgage payments will never change [30 yr fixed mortgage]

• South Florida rental rates have been extremely high in the past 5 years beginning with private equity groups like the Blackstone Group [which went public in 2017] purchasing of almost 100,000 single family homes plus other rental properties in major city markets across the U.S. This started back in 2012. . . they systematically raised rental rates from Miami to Fort Lauderdale and beyond. The average price of a 3/2 townhouse in a descent area in 2012 was $1400-1500 per month. The same townhouse today is renting for $1850-2400 per month depending on finishes.

• Renting helps you help the landlord pay off his/her investment - As a homeowner a portion of your mortgage payments go to 'you' in the form of principal payment - which means, each month you own more of your own property

• When you purchase your home, you can customize it, making it your own, you don't need to ask permission of anyone to change the paint color or your kitchen!

• With an FHA loan, you do not have to have perfect credit, you can purchase with as little as 3.5% down, downpayment can come in the form of a 'gift' from family, and sellers are permitted to pay up to 6% of buyers' closing costs! Many times, the amount of out of pocket money required to purchase with an FHA mortgage is very close to the amount of money you would put down on a rental - first, last, and security deposit. The current loan limit for an FHA loan in Miami-Dade or Broward County is $356,500

• If you are a US Veteran, you can purchase with a VA Loan with 0% down, the seller can pay up to 6% closing costs, and the loan limits are higher than FHA, $484,350 - the same for conforming conventional loans!

• Buying with a jumbo loan - anything over $484,350 has never been more affordable - there are several programs offering as little as 10% down, with interest rates rivaling conventional loan rates!

Are you thinking of buying your first home, investment property, or vacation home here in South Florida? If so, I would love the opportunity to help you! Feel free to reach out anytime via phone, text, or email! Feel free to start your own home search on my website BuySellwithDiana.com

Diana Fahmie PA

Realtor Associate

Coldwell Banker RE

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