Have you heard of "Home Funds"?

Forget Wedding Gifts — Many Brides and Grooms Are Now Asking Guests to Contribute to Home-Buying Funds Instead Nearly 20% of couples registered on The Knot are asking for assistance with a down payment. The days of gifting a toaster or silverware set to newlyweds may soon be gone! Instead, more brides and grooms are asking wedding guests to help them buy a home with down payment contributions as a part of their wedding registry, according to analysis from Zillow Home Loans and The Knot. Since 2018, the number of couples who have listed "home funds" on their registry has jumped 55%, with 20% of couples registered on The Knot asking for assistance with their down payments, according to a release from Zillow. Esther Lee, deputy editor of The Knot, said that home funds made up "one of the most popular wedding registry cash funds" on the site last year. "Amid rising interest rates and historic highs for down payments, this particular wedding contribution helps newlyweds reach another meaningful life milestone: homeownership," she said. According to the analysis, the rise comes as many as half of homebuyers are now shopping for their first home. It takes an estimated 12 years to save up for a downpayment — a number that was just 9 years before the pandemic. Zillow also notes that the typical monthly mortgage payment has doubled in that timeframe. Between 2018 and 2022, "first-time buyers were at least twice as likely to report putting gift funds toward their down payment," per the release, with 43% of them reporting in 2023 that they were using gift funds from loved ones toward the purchase. "Young couples may be eschewing convention when it comes to their weddings, but they still aspire to achieve the age-old American dream of homeownership," Amanda Pendleton of Zillow Home Loans said. "That dream, however, can feel out of reach without the right support. For couples who choose to add down payment funds to their registry, it's important that they also work with a qualified loan officer to understand what they can afford and what loan options fit their situation."  "First-time buyers often think a 20% down payment is required, but that's not always the case. Some may qualify for a down payment as low as 3%, which will change their savings timeline and monthly payment dramatically." "While guests prefer to give cash gifts for celebratory treats, like a sunset honeymoon dinner, milestone gifting is a profoundly thoughtful and significant trend we're seeing among couples planning on The Knot."  

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Why Real Estate is a good investment at all times

  https://www.entrepreneur.com/     Whether you’re a business owner or concerned about your personal finances, you’ve likely been tuned in to current news about the economic status of the country. There’s been a lot of talk about recessions and at-risk investments in the past few months. Whether we’re in one, about to enter one, or far away from one, your best bet to prepare for another economic downturn is to acquire information.   The state of the economy affects the job market, businesses, and your investments. Of course, you can’t control many of these aspects. However, you can make informed decisions about where you choose to invest your hard-earned money. So, where should you keep your money when the dark clouds begin to hover over the investment world? Let’s take a look at one of the best choices.   Those who experienced the housing-sparked financial crisis of the late 2000s might find it surprising to see this one on the list. Still, people will always require a place to live. Real estate offers many different strategies, two of which are particularly worthwhile to consider here. Rental Properties Rental properties come with the responsibility of upkeeping livable conditions for tenants. However, they also come with the unique advantage of providing someone with a home and securing consistent income. They are a unique investment that can be more personal if you choose to do so. You could become a friendly neighborhood landlord, or you could hire a property manager to oversee day-to-day operations. There’s a lot of flexibility with this investment because you can see returns by just having one property or by having multiple. Something to consider to help keep track of all your investment properties is an SREO (schedule of real estate owned). This is a list of all the rental properties that an investor has full or partial ownership of. Owning a rental property offers numerous advantages during downturns, even if the overall price of the property remains flat or falls. Similar to defensive stock investments, rental properties are often best when they’re long-term investments. A properly purchased and managed rental will pay you money each month, ensuring an income for you or your portfolio. This extra cash is especially valuable during recessionary periods when you might need it yourself or want to take advantage of buying opportunities. Rental properties also offer tax advantages. For example, the ability to deduct costs related to operating and maintaining them. These deductions, along with on-paper expenses like depreciation, can help reduce the taxes you owe on your primary income. Property is also one of the few investments that you can pass on to future generations if you choose to do so. There’s only so much land and real estate available. Consequently, it’s almost always a smart investment to buy some. Property Flipping Flipping houses or other properties can be an excellent investment for times when the economy seems unsettled. These periods may lead more homeowners to sell their homes or existing ones to accept less than they would have otherwise. Both situations are perfect for flippers, who can then secure the property they need at a reasonable price. After making some updates to the home’s systems and aesthetics, flippers can then sell it for a premium to would-be owners looking for a turnkey property. The profits made from property flipping can be substantial; some individuals even use it to prepare for retirement. Many of the costs to flip a property come from updating appliances and modernizing certain features. Avoid foundational issues, plumbing problems, and electrical or termite damage because it will have a higher cost to fix. Unfortunately, real estate can require quite a bit of capital, at least to get started. If you can’t scrape together the five to six figures needed to pull off a flip in cash, you can always explore options like fix and flip loans. These unique loans are often short-term and interest-only, allowing flippers to invest relatively little money, knowing they’ll pay off the loan when the property sells. Naturally, these should be used with caution to ensure you don’t get stuck with a loan for a house that won’t sell.         ReplyForward      

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