Your Western Montana Living Resource. It’s time to start living the Montana Way.
We are your Western Montana Real Estate specialists. With office locations in Missoula, Hamilton, Polson, Kalispell, Meadow Lake, Libby, Deer Lodge and the Southgate Mall in Missoula.Lambros Real Estate ERA Phone: 406-532-9200 Toll Free: 888.735.sold Fax: 406-532-9330 www.lambrosera.com
By Geoff Williams Published on November 18, 2014 to USNews.com
Your neighborhood is probably missing something.
You may feel it lacks sidewalks or stop signs, but what it probably doesn’t have many of are millennials, a generation that generally includes those born between 1981 and 1996, according to the Pew Research Center.
At least, the statistics tell us there aren’t as many young homeowners as there used to be. Thirty-six percent of American homeowners are 35 and younger, the lowest on record since 1982, when the census’s Housing Vacancy Survey began tracking homeownership by age. Those age 65 and older have a much higher rate of homeownership – 80 percent – but that’s expected. The longer you live, the more time you’ve had to save and buy a house.
If you’re in your 20s or early 30s and aren’t a homeowner but wish you were, you may wonder what happened. Have you been doing something wrong? Are you stuck in your apartment or your parents’ basement forever?
No – and probably not. Here are just some of the reasons you’re probably not having much luck getting a mortgage.
You have a lot of student loans. There are numerous factors pushing against millennials’ plans for homeownership, including the economic hangover from the recession, but student loans are a major obstacle. Even if a lender doesn’t see your massive student loan debt as something that could prevent you from making a mortgage payment, plenty of potential homeowners do.
“Most of us can’t [buy a house] because of student loans and stagnant wages. If you’re having to pay $400 a month to Sallie Mae, how are you supposed to save for a home?” asks Rachael Nichol, a 26-year-old social media manager in Atlanta who did buy a house last August.
Student loans have so far kept Michael McGinn from buying a home. “I’m 28 and haven’t purchased a house yet because my fiancee has over $100,000 in student loan debt from nursing school,” says McGinn, who works in public relations in New York City. “We will keep renting an apartment for at least the next five years until she pays it off. We figure we’ll be able to secure a lower interest rate once that debt is off the books, and the extra time will allow us to increase our savings for a down payment.”
You lack a credit history. Lenders may see you as a risk if you have no credit history, says Alex Vercheski, a real estate agent with Keller Williams Realty of Greensboro, in North Carolina.
“The best way to help yourself early on to be able to buy a home is to establish credit, as this is one of the biggest factors a mortgage company looks at,” Vercheski says. “Get a credit card as soon as you turn 18 and start establishing credit.”
Keep in mind that the Credit CARD Act of 2009 made it difficult for anyone under 21 to get a credit card. It’s not impossible, but you’d need to show proof of sufficient income to cover the credit obligations or get a parent or guardian to cosign your account.
And, of course, you need to be careful when using a credit card to establish credit. Too much credit card debt can make mortgage lenders wary. Millennials, on average, have less credit card debt than older generations, according to Experian’s 2013 State of Credit Report. Millennials hold an average of $2,682 in credit card debt, compared with the average Generation X and baby boomer credit card debt of more than $5,000. But the average millennial is two to four times more likely to make a late payment than the older generations.
3011 American Way | Missoula, MT 59808
406.532.9200 | 888.735.SOLD (7653)
The owners of Missoula’s South Crossing redevelopment project announced three new tenants this week, each related to the food industry.
Kraig Erickson, manager of leasing and development for the Woodbury Corp., said MacKenzie River Pizza Co. has broken ground on its new restaurant, to be located on South Reserve Street.
Noodles & Company and Jimmy John’s also plan to open restaurants in the development’s last remaining lot off Brooks Street.
“My wife grew up here and I used to coach at the university,” said Lance Robinson, owner of MacKenzie River. “We have a lot of friends who live over there on the south side of town who don’t drive to our current restaurant, so we thought this would be a good location.”
MacKenzie River already has two restaurants in Missoula, one located downtown, the other on North Reserve.
Aging office buildings constructed more than 20 or 25 years ago face stiff competition from newer models that feature more amenities, smart technology, modern designs and energy efficiency. These days, in order to remain competitive, older buildings need much more than a facelift or a lighting retrofit.
Owners of older properties oftentimes need to rethink their relevance and find ways to reposition in a new environment. “Awakening” these aging assets was one of the topics discussed at the CoreNet Global North American Summit last week in Washington, D.C. The aging inventory of office buildings in Central Business Districts (CBDs) across the country puts the issue front and center for property owners.
In primary markets, the vast majority of office buildings were built prior to 1990—before the Internet, smartphones, green building practices and “smart” building automation.
“Those technological changes have really redefined the way that [companies] engage with these assets,” says John Clegg, a principal at Page, anand engineering firm based in Washington, D.C.
Many older office buildings have difficulty competing with new class-A properties and tend to slide into the class-B or even class-C territory. That decline translates into lower rents, and in some cases, lower occupancies. The big question is how to best revitalize those properties to maximize their value potential.
“What we’re really talking about is how to get smarter about an asset. How do you find value that you might not know is there?” notes Jamie Flatt, an associate principal at Page.
Making the necessary improvements could translate into hundreds of millions of additional dollars in rental revenue per year, notes Flatt. “So, there is huge potential if owners are willing to rethink what these assets are and shift their prospective goal market,” she says.
ERA Lambros Real Estate
3011 American Way
Missoula, MT 59808
ERA Lambros would like to congratulate Tory Dailey, Ed Coffman, Barb Riley, Cheryl Smith, Rod Delaney, Tillie Marshall and Kim Maclay on earning Top Producer for the month of October! Visit any of our offices in western Montana for the most professional and knowledgeable real estate agents in the business.
Bruno Friia, CEO of ERA Lambros Real Estate, was featured in the Sunday Missoulian on October 19th, 2014. He shared his insights on the current real estate market in Western Montana and his experience in the real estate industry these for the past three decades.
Read the full article here – Missoulian 10.19.14
ERA Lambros would like to congratulate Rick Meisinger, Bill McQuirk, Barb Riley, Carolyn Weisbecker, Kerry Munro Mann and Jim Cockriel on earning Top Producer for the month of September! Visit any of our offices in western Montana for the most professional and knowledgeable real estate agents in the business.