Rx For Angst-Ridden Long-Term Renters

Marilyn Kennedy Melia

As the share of 40-something Americans who haven’t been able to buy a home increases, so do their feelings of frustration and failure.

But objectively, they are probably being too hard on themselves, says Seattle-based financial therapist Kate Dorman. (A financial therapist is a professional who “looks at how our feelings, beliefs, values, upbringing, etc. impact our financial behaviors,” she explains.)

“Even with rising incomes, buying a home is nowhere near as affordable for young adults today when compared to thirty years ago,” Dor- man notes.

“ ere is such a shortage of housing for sale, let alone reasonably priced housing, that some young adults are exiting the space altogether,” adds Lindsay Bryan-Podvin, financial therapist at mindmoneybalance.com.

So, what’s the anecdote for frustrated would-be homeowners?

“To reach a home buying goal,” says Dorman, “it’s first necessary to explore exactly why you want to own.” She sees clients who feel they “should” own, if their friends are buying or because their parents were already established owners at their age. But those aren’t compelling reasons to stick to the tough work of savings for a down payment and strengthening your financial profile to more easily buy, says Dorman. However, renters who “plan to live in one place for an extended period of time,” and are confident that buying is the right decision for them do have a compelling goal, Dorman adds.

Still, most Americans build the bulk of their wealth by buying a home and slowly paying off the mortgage.

So, what should renters creeping into middle-age do to establish financial security?

“It’s important to save, period,” says Janneke Ratcliffe of the nonprofit Urban Institute.

Since data shows that renters don’t build comparable savings as homeowners, it makes financial sense to make buying a priority whenever you plan to stick in one location long enough to likely profit from ownership, she adds.

Moreover, says Ratcliffe, buying isn’t always a colossal financial challenge. Putting just five percent down is possible, and she suggests visiting downpaymentresource. com, which lists opportunities for down payment grants.

3503 W 4th Street

Anacortes

$625,000

MLS #2055887

Open House

4/22 & 4/23 from 12-2

Situated on a quiet Anacortes street just a block from the Anacortes Community Forest Lands.

Single level, beautifully maintained, move-in ready home has so many recent upgrades it might as well be new!

OPEN

Eddleman REALTOR

Call/text: 360-333-4048

Geri