Real Estate Search Direct

When searching for affordable housing, it can mean many different things depending on your personal budget and minimum standards.  It can also mean different things depending on your goals. 

What do you call affordable housing?

Affordable housing to some, may be a small apartment in a bad neighborhood.  To others, it may be a nice house with an ocean view.

Homer Buyer has his own idea of affordability.  When Homer was in graduate school, he went out for lunch at McDonald’s one day.  He stepped up to the counter to order. He was expecting to see someone younger than himself working behind the counter.

Instead he saw a man with gray hair, and bifocal glasses.  He didn’t know how old the man was, but he guessed almost 70.  Homer ordered his meal and sat down to eat, but he was curious about the man who had served him.

Soon, the man took a lunch break and came to the dining room to eat, so Homer went over to him.  He saw the fellow’s name tag said Jacob.  He asked, “Jacob, can I join you for lunch?”

The man replied, “Call me Jake, and have a seat.”  They talked over lunch and Homer found out that the man had retired two years ago from a 40 year career as an engineer.  Being a computer science major, Homer felt this hit close to home.

Jake had been a company man.  He worked for Enron and it’s parent companies for most of his career and had counted on his stock options for retirement.  In 2001, when the Enron Scandal was uncovered, Jake found out his stock was worthless and he was out of a job.

He was able to get a job at a lower salary for the next 5 years, but the company had a forced retirement policy at age 65.  So Jake had only 5 years to save for retirement.

Jake had rented his home for his whole life.  The company had relocated him frequently wherever they needed him, so he never felt like settling down.  Jake moved to a small apartment in a senior community to save money when he realized he had no retirement savings and only 5 years left to work.

When Jake retired at 65 he had saved $200,000.  He hoped to live another 30 years, but even with social security benefits, he knew $200,000 wouldn’t last.  Social Security barely covered his rent.  But who hires 65 year old men?

Jake spent a year looking for engineering jobs without luck.  So finally he ended up working at McDonald’s hoping to stretch his retirement to last a few more years.

At that moment, Homer realized he could not afford to depend on social security after retirement.  He also could not afford to depend on a company retirement plan.  He was determined to start building his net worth and retirement savings as soon as he finished his degree.

After some reflection and research Homer decided he could not afford to be a renter any longer than necessary.  He realized that to start building wealth, he could not afford to spend a third of his income with nothing to show for it at the end of the month.  He could not afford to pay rent.

Homer decided as soon as he finished his degree and got a job, he would start looking to buy a house.

Buying a house is often a beginning step to personal wealth.  Buying a house helps in the following ways:

• Paying down your mortgage will build equity and net worth.
• Rent has no value at the end of the month.
• Mortgage interest provides a considerable income tax deduction.
• Home ownership builds a sense of community, stability, security and responsibility.
• The mindset of a homeowner is more compatible with building wealth.
• Real estate may decrease in value at times, but over the long term it will appreciate in value.

To begin your search for a home go to the Real Estate Search Direct Search for Properties page.  There you will find resources to search properties and contact a real estate agent.

Allen Davis
RealEstateSearchDirect.com