Homeownership can have a HUGE impact on Net Worth and Wealth.
The Federal Reserve found that in 2019, homeowners had 40x MORE net worth than Renters.
Homeowners median net worth, $255,000 vs. Renters median net worth, $6,300
A mortgage can act as a mandatory savings account that builds equity over time, but rent has no return on investment. Add in the appreciation in value of your home and you have a formula for generating wealth.
The San Diego Union-Tribute interviewed local experts on “Building Wealth in 2024”. The experts, Dick Pfister and Danny Michael, had the following advice:
Concerned about capital gains?
Consider a 1031/721 exchange allowing you to exchange your “existing real estate for ownership in a large institutionally managed Real Estate Investment Trust (REIT).”
Need to complete a home renovation, but don’t want to pay high Home Equity Loan interest?
Consider other funding options: a 401(k) loan, a 0% credit promotion for balance transfers (be sure to pay off before the end of the 0% interest), or use investments with “capital losses to offset capital gains.”
“With mortgage rates finally easing, many California cities are expected to see home sales rebound significantly next year, according to a forecast from Realtor.com.“
Homeownership offers significant financial advantages, with homeowners experiencing an average wealth increase of 1,469% compared to renters, excluding home equity. Selling a home allows homeowners to benefit from accumulated equity, even if the mortgage is not fully paid off, resulting in a variable monetary return based on ownership duration and mortgage type. Paying off a mortgage completely leads to a mortgage-free lifestyle, reducing living costs and providing support for a comfortable retirement. To navigate the homebuying process effectively, it’s crucial to consider factors such as down-payment requirements, financing options, and price range based on debt-to-income capabilities, enabling informed decisions and avoiding costly mistakes.
Everyone loves a clean kitchen. Believe it or not, however, your kitchen countertops can be the most unclean parts of your house. It’s true: they are used to prepare raw and cooked food, they get splashed from dirty sink water and they have all manner of things dropped and spilled on them. While some of this unseen mess is harmless, common bacteria like listeria, salmonella and E. coli are not.
You may know that a cutting board has to be cleaned after it is used to cut up raw chicken or other meat, and that dirty dish sponges can be full of unhealthy germs. Anti-bacterial sprays and thorough cleaning with soap and water all help make kitchens more hygienic, but what else can you do? A good choice is to look for kitchen countertops that are made with more hygienic materials. If you are planning a kitchen remodel, you will want to make this a priority.
Types of Kitchen Countertops
There are more kitchen countertop choices out there than ever, made from wood, concrete, quartz, granite and marble. Southern Living advises homeowners that it is okay to mix and match material types from an aesthetic perspective, as long as you don’t go overboard. Some are scratch-resistant, while others like laminate are not.
Materials like granite and quartz will be more expensive, but are top-recommended materials, if your budget permits. You can cut and chop right on the surfaces of these materials, and they are heat-resistant. They are also more hygienic because they are scratch-resistant and less porous, so you will want to keep this in mind when making your selections.
Less-Hygienic Kitchen Countertops
Laminate countertops are versatile and inexpensive, and you can find them in countless colors and patterns. They are made from plywood or fiberboard, with a thin laminate covering. This material is more prone to scratching and heat, which makes it more susceptible to bacteria and germs.
Another less hygienic kitchen countertop material is wood, even though it can look great in country-style kitchens. You can find countertops made of various woods, like maple, walnut and cherry, made in both small and large pieces. Although wood is eco-friendly, it can also absorb bacteria. Wood kitchen countertops (and cutting boards) should always be disinfected after coming into contact with raw meat.
Kitchen design trends have been pointing towards stone countertops, which are stylish and modern. If you choose stone, it will have to be sealed, because it is porous. Some stone countertops also have finishes that make them non-porous but look more natural than sealants.
Concrete kitchen countertops have also come into the spotlight, and you can find them popping up on design sites and in homes. They do not look like traditional concrete; instead, they have interesting textures and colors. If the surface has cracks and pits, though, these imperfections can encourage bacteria growth. Like the look of concrete? Be sure that the countertop is finished and sealed to make it more hygienic.
More-Hygienic Kitchen Countertops
Quartz kitchen countertops are also popular in modern kitchens. Quartz is made from engineered rock chips and dust that are bound with resin, and the material is non-porous. It is less expensive than granite and stone, but it has the same kind of durability and beauty.
Granite is one of the hardest materials on the planet, and it also has a high resistance to scratches, heat and bacteria. Homeowners like granite because it has depth, rich colors and attractive patterns. It does not necessarily require sealing, but many companies recommend doing so.
Perhaps the most hygienic countertops are those made of stainless steel, and this is why they are found in commercial kitchens. They are manufactured in single sheets and known for their outstanding antibacterial qualities.
How to Clean Hygienic Kitchen Countertops
Even when the countertop material is more hygienic, it still needs to be properly cleaned. Granite countertops can be wiped down with warm soapy water or a mild bleach solution. You can remove stains with a baking soda/water paste or diluted bleach or ammonia. Do not use abrasive cleaners or scrubbers, and rinse the surface thoroughly.
Clean quartz countertops in much the same way, but do not use any bleach. Wipe up stains immediately, and use Windex or another surface cleaner for dried-on messes. Also avoid using anything abrasive, as it can damage the countertops. You can cut and chop on quartz or granite, but there is nothing wrong with using a good cutting board. Just remember to clean it well.
The City of Chula Vista recently passed the Tenant Protection Ordinance (TPO) affecting both Tenants and Landlords beginning March 1, 2023.
The TPO, in general, gives tenants of multi-family/multi-unit properties additional protections from landlord harassment and no-fault lease terminations/evictions. These protections include limitations on landlords to terminate leases and relocation assistance and/or credited to tenants upon notice of termination for allowable no-fault reasons. The TPO also defines harassment and stipulates fines and punishments for offending landlords.
The TPO by default applies to ALL properties, however, single family homes NOT owned by a corporation can be exempted.
Number of Chula Vista Sales Lowest in Nearly 20 Years
The fourth quarter of 2022 ended with the lowest number of sales in many areas of Chula Vista in the last 20 years. In the 91914 zip code, there were only 11 sales of single-family detached homes From October 1 through December 31, 2022 according to data collected from the California Regional Multiple Listing Service.
High interest rates can be blamed for decreased buyer demand as well as the low inventory of homes for sale. With many homeowners sitting on sub-3% interest rate loans, prospective move-up and downsizing buyers just don’t see the logic in selling now. Who would want to pay interest rates that could be more than double what they have on their existing mortgages? This freeze will likely take a while to thaw out since rates will likely not be improving significantly in the coming months. For at least the next few months, we will likely continue to see lower-than-normal numbers of transactions and little further downward pressure on prices.
On the bright side, 2023 is starting off with more stability than we have seen in recent years! Furthermore, the Mortgage Bankers Association reported a 7% increase in mortgage applications from the prior week. Mortgage rates have declined for the third week in a row.
This is good news for both potential buyers and sellers.
If you have questions about today’s current market, contact your trusted BHGRE Clarity Real Estate Agent.
For more information about homes for sale in San Diego County visit: BHGREClarity.com
– Peter Carlseen, Broker, BHGRE Clarity, DRE#01441961