Multigenerational Trend Counters Downsizing Wave
Downsizing has gotten a lot of attention as Baby Boomers—many of whom have become empty-nesters—discover that they don’t need the space, expense, and elbow grease required to keep up the family property. But there is a counter-trend that could well explain the popularity (and desirability) of many big ol’ Rehoboth Beach, DE homes. It’s a multigenerational thing.
It was to be expected that multigenerational family households became more numerous following the Great Recession. After all, when jobs became scarce, incomes stagnated, and foreclosure rates skyrocketed, the idea of moving back home with mom and dad became a practical necessity for many Rehoboth Beach, DE families.
Enter the term “multigenerational family living.” It’s defined as the inclusion of two or more adult generations—or including grandparents and grandchildren under 25 years of age—in a single residence. That lifestyle choice had been steadily declining from 21% in 1950 to 12% thirty years later. But beginning in 1980, that trend reversed—sharply so, during the economic turmoil of 2007-2009. Although that rapid increase has since slowed, today it is still on the rise.
According to the U.S. Census Bureau, 51.5 million Americans lived in multigenerational households in 2009 (that’s 17% of the entire population). Compare that with the latest count from Pew Research, which registered 60.6 million (19%) in 2014.
Pew explains part of the trend as a cultural phenomenon stemming from the growing diversity of the U.S. population. Cultural preferences among some Asian and Hispanic groups—as well as with some foreign-born Americans—tilt toward multigenerational living. But in recent years, young adults make up the age group “most likely” to add to the trend. Previously, the elderly had led the way, but by 2014, for young adults aged 18 through 34, living with parents surpassed other living arrangements for the first time ever.
- Written by Jimmie Bachand
For Rehoboth Beach, DE House Buyers, 6 Horrifying Halloween Plot Twists
Unless you are among those who are currently focused on the search for a new Rehoboth Beach, DE house, this week’s Halloween celebration has probably captured a goodly bit of your attention. As Halloween night draws near, most other Rehoboth Beach, DE residents find themselves preparing kids’ costumes, carving suitably horrifying jack o lanterns, stocking up on goodies for the onslaught of the costumed throngs, or, alternatively, making plans for going dark convincingly enough to avoid the wrath of the trick-or-treaters. But actively engaged house hunters can be forgiven if they’ve been preoccupied with their more urgent real estate pursuit.
That doesn’t seem fair, so in order to preserve the spirit of Halloween week for house buyers, here is a theme-appropriate tale with half a dozen shriek-producing plot twist endings:
(Turn down the lights).
Imagine an innocent couple—after an uneventful series of house showings, they finally find the home of their dreams! They apply for the home loan; all they have to do is await approval…
It’s a dark and stormy night. Now the phone rings! It’s the bank; the phone is on speaker as we hear the bone-chilling voice that says:
1. “Is it true that you just changed jobs two weeks ago?”
2. “Soooo, last Tuesday you decided to buy a bunch of furniture for the new house—on credit?”
3. “That big one-time deposit into your bank account. It came from…where, exactly?”
4. “Looks like you forget to list that personal loan balance of $12,315?”
5. “I see you bought a very nice car last week. Very. Nice.”
6. “Eight credit inquiries in the past two months? Really—eight?”
- Written by Jimmie Bachand
The Delicate Art of Considerate Rehoboth Beach, DE Rent Increases
Inflation has been barely noticeable for quite a while, but as Rehoboth Beach, DE shoppers have begun to notice how it’s been creeping up lately. For Rehoboth Beach, DE landlords, that triggers a subject that directly impacts the profitability of their real estate investment.
Managing rent increases properly—and communicating them in a manner calculated to preserve your tenants’ goodwill—is a subject estate author Kevin Ortner writes about in Realtor Magazine. A few of his insights:
· Raise rents on a regular schedule—usually, this will come at each lease renewal period (or when the agreement specifies)—but for month-to-month situations, once a year is recommended. Small increments on an annual basis are more predictable (and agreeable) than “catch up” raises scheduled less frequently.
· Be competitive. The “sweet spot” you are looking for is the best price you can get for your rental—which is also actually “how much tenants are willing to pay.” That’s subject to compliance with Rehoboth Beach, DE and local laws in accordance with the terms of your lease. Research by starting with a look at the Bureau of Labor Statistics’ annual calculation of Shelter Cost Changes—most recently, 3.4% at the end of August. The national trends are good to know but are not as significant as the more important data: the rates similar Rehoboth Beach, DE rentals are currently advertising.
· Give extra notice. You’re required to abide by the law and your lease, but when you give tenants more time, it makes any raise less burdensome. If the raise is competitive, tenants will have ample time to shop around and see that it’s reasonable.
· Work to keep good tenants happy. The most successful landlords frequently take their best tenants’ situations into consideration. If you decide to cut them some slack as a way of cultivating the relationship, you might even do what Ortner suggests: “show them what the rent increase was going to be”—but with that number crossed out and a smaller one in its place. You should also have determined the operating cost rises behind the rent increase, and be willing to share those facts.
- Written by Jimmie Bachand
Rehoboth Beach, DE Real Estate Acronyms Include These Puzzlers
Buyers and sellers are more well-informed than ever before due to easy access to online Rehoboth Beach, DE real estate sites (like mine—and BTW, thanks for stopping by!). Given the advent of constantly updated listing data and the abundance of accompanying commentary and analysis, it’s no surprise that the level of real estate sophistication is significantly higher than it was even just a few years ago. It also means that more members of the general public are likely to find themselves in the puzzling presence of some real estate alphabet soup that haunts realms formerly visited only by real estate and mortgage industry professionals.
True: it’s easy to query Google to decipher acronyms like “DHSC.” But then you’ll have to wade through red herrings like “Doctor of Health Sciences” and “Defense and Homeland Security Consortium”—or even Deployment Health Surveillance Capability (that’s from Munich, Germany, but it’s listed as a possibility). Real estate’s “DHSC” is short for Direct Home Selling Costs”—meaning the combined selling expenses (carrying costs, loss on sale, repairs and improvements, commission, closing costs, etc.) all lumped together in one succinct 4-letter package.
Here are some common real estate-related acronyms you may come across from time to time:
HUD/RESPA—The statement you get at the closing table which spells out all the monies paid out and received: short for “Housing and Urban Development/Real Estate Settlement Procedures Act.”
PMI—The kind of insurance borrowers pay for home loans of more than 80% of the property’s value: short for “Private Mortgage Insurance.”
TOM-When a listing is taken off the market because of illness, travel, repairs, etc.: “Temporarily Off Market.”
PITI—the four parts that make up monthly mortgage payments: “Principal, Interest, Taxes, Insurance.”
IDX—the technical term used in connection with real estate search sites that display the parts of Multiple Listing Service information that’s marked for public access: “Internet Data Exchange.”
APR—the by-now familiar term which takes all of the costs of generating a loan and combines them into a single percentage number: “Annual Percentage Rate.”
- Written by Jimmie Bachand