One of the best ways to build your family’s financial future is through homeownership. Recent data from the Federal Reserve indicates the net worth of a homeowner is over 40 times greater than that of a renter. Maybe it’s time to start thinking about buying a home. Every three years the Survey of Consumer Finances shows the breakdown of how owning a home helps build financial security. In the graph below, we see that the average net worth of homeowners continues to grow, while the net worth of renters tends to hold fairly steady and be significantly lower than that of homeowners. The gap betwe ..read more

The 30-year fixed mortgage rate has been bouncing between 6% and 7% this year. If you’ve been on the fence about whether to buy a home or not, it’s helpful to know exactly how a 1%, or even a 0.5%, mortgage rate shift affects your purchasing power. The chart below helps show the general relationship between mortgage rates and a typical monthly mortgage payment: Even a 0.5% change can have a big impact on your monthly payment. And since rates have been moving between 6% and 7% for a while now, you can see how it impacts your purchasing power as rates go down. As you can see, a 1% change i ..read more

Buying a second home is a big step, but one with personal and financial rewards. Perhaps the most obvious is — it’s a place to holiday. Owning a vacation home beats staying in a tiny hotel room, spares the hassle of having to make reservations, or worrying about the cost of rental rates and restaurant prices each time you want to take a trip. And over the long term, a vacation home can provide many other financial benefits. You build wealth as the home appreciates in value, and if you choose to rent the home when not using it, it can also provide a lucrative passive income stream. Wh ..read more

If the phrase “hard money loan” makes you think of quick and easy business deals that end in “cold, hard cash,” you’re not too far off the mark. However, just because this type of loan offers fast financing doesn’t mean it’s a good, safe option for everyone. So, what are hard money loans and should you be wary of them? Let’s examine what you should look out for and also consider the pros and cons of hard money loans. Hard money loans may not be difficult to get, but they can be expensive. Despite the cost, they’re an essential tool for investors. Knowing when to use hard money and how to ..read more

The Central Ohio Housing Market Remains Strong While some housing markets are experiencing price declines, home prices in Central Ohio continue to rise. Columbus, Ohio, was ranked 14th by Realtor.com® in its Top-100 Housing Forecast for 2023, based on several critical factors such as affordability at the median income level, combined sales, and price change year-over-year. Overheated metro areas such as Boise, Idaho and Austin, Texas have seen a 4% and 3% decrease, respectively, in home values over the last six months. In Columbus, growth in home values has slowed, but the market sti ..read more

To understand where Central Ohio home prices are heading, we look at four key things: supply, demand, affordability and credit availability. While the first two components don’t tend to change quickly, affordability and credit availability can move very rapidly. And that’s exactly what we’re seeing now. The upshot is that because the overwhelming number of homeowners are on fixed-rate mortgages, and because home equity is still high, most people are insulated from the coming shock. But this insulation comes with a cost, the “lock-in effect. Current homeowners, in order to sell their home in mo ..read more

Columbus Ranks 5th On Realtor.com’s Hottest, Most Afford Housing Markets Columbus received national recognition in September as one of the hottest, and healthiest housing markets in the country. And despite rising interest rates, Central Ohio homes buyers are still reeling in benefits with home prices that are well below the national median.  The Capital City ranked fifth on Realtor.com’s hottest housing markets list for September. It’s no surprise our midwest city ranks as one of the hottest housing markets, Columbus is still a more affordable place to live compared to many cities t ..read more

A new trend in home buying shows women are ditching the traditional custom that marriage should precede homeownership.  In 2021, single women made up 19% of homebuyers, while single men accounted for only 9% of homebuyers. Since 2010, there has been a 30% increase in the number of single women purchasing homes.  While this trend is encouraging in terms of women’s increasing financial independence, and the opportunity it presents to chip away at the gender wealth gap (given homeownership’s role in wealth building), women still face greater challenges to homeowner t ..read more

A new Ohio law substantially changes the landscape for real property tax valuation challenges in the state. In general, it substantially curtails school districts’ rights to initiate and appeal property tax valuation challenges. Governor DeWine signed the bill on April 21, 2022. It became effective on July 19, 2022, and affects valuation complaints that relate to tax year 2022 valuations. The following bullet points summarize the law’s significant changes. Each situation is different and may vary based on a variety of factors. Readers are encouraged to contact their tax attorney to seek advic ..read more

Many renters feel buying a home is an impossible dream. But consider this: A landlord expects to make a profit after paying the mortgage, taxes, insurance, repairs and other expenses. The landlord’s only income for the rental property is the rent paid by the tenants. As time goes on, and the value of the property appreciates, rents rise and their profit margin grows. If you want more control over your monthly expenses (avoiding future rent increases), and more importantly a share in the profits, buying is the choice for you. If you’d prefer to continue putting money in your landlord’s pocket a ..read more