Ellen Geller Kamaras
A recent study titled, “More stressful than a wedding: first time buyers share the shocks of homeownership” was released by Nationwide, an insurance and financial services company. 1,009 adults were surveyed who purchased their first home within the last year. While eight in ten respondents still value homeownership, more than 50 percent reported that they now view success differently. For them, success means living within their means, growing retirement savings, and maintaining freedom and flexibility rather than focusing purely on ownership and real estate size.
Buying a home is one of the biggest decisions one can make, both financially and emotionally. It is one of life’s most stressful events, along with landing one’s first job, planning a wedding, or finding one’s life partner. Buying a home can trigger both anxiety and excitement because it combines a significant financial investment with a major life transition.
Guidelines
The first step is determining how much you can afford. 1) How much do you have available for a down payment and closing costs? 2) How much can you afford to borrow? and 3) How much can you comfortably pay monthly for other costs, such as property taxes, insurance, utilities, maintenance, and repairs?
Next, research the type of home and location you desire. Tour open houses and search online to determine what is available within your price range. Make a list of “must-haves” and “nice-to-haves,” then decide where you can compromise and what are your dealbreakers. Visit the neighborhood at different times – during the week, rush hour, and on weekends – to get a realistic feel for what it is like.
Consider whether you will need more space in the future and whether the neighborhood has good schools. Also determine whether there are restrictions regarding future renovations or additions.
Young Buyers
Today’s younger buyers, particularly young families, often prioritize kid-friendly features. Open-concept floor plans make it easier to supervise children while working or cooking. Large backyards with clear sightlines, safe and walkable streets with sidewalks, and flat lots that are easier for children to bike on are all appealing. Many young parents also want multipurpose rooms where they can keep an eye on toddlers, as well as a dedicated space for remote work.
Young home buyers frequently prefer move-in-ready houses that do not require major and expensive repairs. Energy-efficient heating and lower utility costs are also important. Some may prefer a smaller house in a desirable neighborhood rather than a larger home farther away.
Prices are higher and inventory remains low, so today’s young home buyers increasingly look for their “forever homes,” rather than viewing their first purchase as a steppingstone. More than 60 percent reportedly view their first house as their “forever home.” They want homes they can “grow into” over the next ten to fifteen years.
Today’s buyers also emphasize proximity over commuting. Nearby daycare centers, good school districts, playgrounds, shopping, fitness centers, and other amenities may be more important than being close to downtown or the workplace.
The Challenge for Young Jewish Couples
Unfortunately, many young couples are having difficulty affording the communities where their parents or grandparents were able to buy homes and put down roots.
When considering a neighborhood, young Jewish couples may ask: Will we make friends here? Are there families similar to us in observance and at the same stage of life? Can we afford the tuition? Are there schools, shuls, kosher options, and other Jewish resources nearby? Can we build a community and raise our family here for the next 10 to 20 years?
Young couples may consider newer or growing Jewish communities, nearby towns and suburbs with lower purchase prices, or smaller homes that allow them to remain within a community that meets their religious and family needs.
For today’s Jewish home buyer, the American Dream may no longer be defined simply by owning the biggest or most expensive home. Increasingly, it means finding a home and community that provide financial security, family stability, meaningful relationships, and the opportunity to put down roots while living within one’s means.
A Nerve-Wracking Experience
A recent Nationwide survey found that 71 percent of first-time home buyers find the process of buying a home more stressful than landing their first job. Almost 60 percent rate that it is worse than planning a wedding, and 56 percent find it more anxiety-inducing than dating.