Real Estate: A major financial undertaking | Financial Literacy for Class 6 PDF Download

Home ownership

• For many people, buying a home is the biggest purchase they will ever make. Unfortunately, more and more people find themselves forced to put off this purchase. Student loan debt, underemployment, rising home prices and stringent mortgage standards prevent people from buying their own homes until later in life.
• Before signing a mortgage, make sure to calculate all costs and leave some savings untouched for after you buy. Home ownership often comes with a slew of added expenses like taxes, insurance costs, emergencies and necessary repairs. You want to have more than enough to barely make it by. Often getting approval for a decent mortgage rate requires waiting a few more years to save up for a larger down payment.
• The planning stage before buying a house is lengthy. Prospective buyers work hard to get to a place where they can find their permanent home. The process is long and involved, demanding most people to build up their credit scores, save up for a down payment, commit to a stable job location, earn an income that qualifies for a large enough mortgage, choose a good realtor, find a suitable place to live, find a home inspector than have an offer accepted.

Home Ownership in the United States

• The average home buyer searches 10 weeks and views 10 homes.
• The median price of a single-family home in 2018 was $261,600.
• The average price of a new single-family home in 2018 was $299,400.
• In April of 2014, home ownership for all ages fell to 64.8 percent, the lowest it’s been since 1995.