Good Monday morning, Stay safe out there today with slick conditions expected.
Today I talk about What equity can do for homeownership and how that can be used to either buy a new home or enable homeowners to help future generations. The Federal Reserve, in an addendum to their recent Survey of Consumer Finances explains:
“There are numerous ways families can transmit wealth and resources across generations. Families can directly transfer their wealth to the next generation in the form of a bequest. They can also provide the next generation with inter vivos transfers (gifts), for example, providing down payment support to enable a home purchase or a substantial wedding gift.”
The Federal Reserve also explains another way wealth (including the additional net worth generated by an increase in home equity) can benefit future generations:
“In addition to direct transfers or gifts, families can make investments in their children that indirectly increase their wealth. For example, families can invest in their children’s educational success by paying for college or private schools, which can in turn increase their children’s ability to accumulate wealth.”
I also discuss Veronika Bondarenko article in Inman News regarding the Rent Price increase across the county rose above 2% for the first time since the pandemic started. The largest increase happened this past month in Phoenix, AZ where there is a high number of young professionals moving there for work. Rents in the City rose by 5.8% while Arizona's Tucson and North Carolina's Charlotte followed close at 4.8% and 4%, respectively.
In my final segment, I talk about an article from Jennifer Somers about The State of The Restaurant Industry. It is estimated that 100,000 restaurants will close in 2020. $240 billion in industry losses are projected. Folks we have to do everything we can to support our local restaurants in Smithville, MO. Staying local and buying local will help these restaurants survive.
