President's Message

Homeownership Remains a Key Part of the American Dream

By Don DiNovi

Don DiNovi

There’s been a lot of talk in the news lately about Millennials delaying marriage, kids and homeownership. So it would be easy to think that perhaps the traditional American dream of owning home is slowly dying. In fact, the opposite is true: Research shows that homeownership remains a goal for the vast majority of American renters. A recent survey by Freddie Mac revealed that 91% of renters believe homeownership is something of which to be proud. And, younger renters are making plans to buy homes in the near future. In fact, nearly half of renters in the 25-to-34 age bracket – and nearly 60% of renters ages 35 to 44 – indicate that they plan to buy a home in the next three years.

Benefits of Homeownership: These would-be buyers recognize the many benefits to homeownership, including the fact that homeownership is a primary source of net worth for many Americans, and is an important step in accumulating personal financial assets over the long term.

In fact, 90% of the survey respondents said that being able to pass their home on to their children is one of the top three benefits of homeownership. Although property values have declined in many markets, Americans have more than $10.8 trillion of equity in their homes, and for most families, home equity represents the largest share of net worth.

Overcoming Obstacles to Homeownership: Qualifying for a mortgage and saving up for a downpayment remain primary obstacles to homeownership. To help address these concerns, Fannie Mae and Freddie Mac – through the Federal Housing Administration (FHA) – recently announced new low-downpayment mortgage programs geared primarily toward the first-time home buyer market.

These lenders will now offer mortgages with 3% downpayments, allowing more creditworthy borrowers who lack the funds for a large downpayment to obtain a home mortgage. To ensure that the financing process goes smoothly, buyers should consider pre-qualifying for a mortgage and having a financing commitment in place before shopping for a new home. Buyers also may find that some home builders have arranged favorable financing for their customers or offer financial incentives.

Recent analysis by the National Association of Home Builders reveals that financial concerns remain front of mind for many first-time home buyers. In fact, Millennial home buyers – those in the 18-to-33 age bracket – are more likely to let financial reasons influence their house choice, while older generations consider the right size most often. And the homes Millennials buy are smaller, older and less expensive than homes bought by older generations. That’s not surprising, since Millennials also are more likely than older generations to finance home purchases through current income than accumulated wealth, according to the NAHB analysis of the 2013 American Housing Survey.

So, while Millennials may be taking a little longer than previous generations to reach some of these traditional milestones, their goal of building their own American Dream remains strong.

Learn more about the benefits of homeownership, contact Kathleen M. Kurpiel, executive vice president of the Builders and Remodelers Association of Northern New Jersey kathleen@brannj.org

Presidents Notes: Special thanks to associate members Richard Gaynor of Middleton & Company and Kara Kaczynski, Esq. of Scarinci Hollenbeck for presenting a very informative member education seminar, Put the Law on Your Side 2, on June 16^th at Scarinci Hollenbeck in Lyndhurst. All members and guests took valuable information back to their companies regarding contract language and the law as it relates to building industry-related businesses.

I hope to see everyone at our upcoming fall event, Texas Hold Em Night, on September 18^th. See details below to register.

Regards,

Don


Pella Windows

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In the News!

Statement from NAHB Chairman Tom Woods on Filing Suit Against EPA, Corps on Waters of the U.S. Rule (click here)

Construction Job Openings Increase in May (click here)

For Builders, Labor/Subcontractor Shortage Intensifies (click here)

Member Announcements

Premier Partner Member to Member Discount—VAN NATTA MECHANCIAL

Contractors utilizing Van Natta Mechanical for the first time for plumbing, heating, air conditioning, electrical, or spray foam insulation, for contract work, will have 1% donation made to BRANNJ in the contractors name, to be used at the discretion of BRANNJ. Invoices will be billed out in gross and contract payments must be made within terms of agreement for donation to be valid. Rebate is also valid for referrals to customers that translates into contract work. Offer is valid from Sept 1, 2015 – August 30, 2016.

Members Doing Business With Members. Before and After Photos from Builder member, Belvedere Building and Contracting, who work with fellow members Van Natta Mechanical and Ulrich on many projects in the Northern, NJ housing market.

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Take your family and friends to see Titanic, The Musical, starring BRANNJ Premier Partner, John Cioletti of Reno’s Appliance! Be sure to come out to see a great show and support your fellow associate member.

Save the Date!

Friday, September 18^th ~ Texas Hold Em Night. Join us for this annual fall favorite event whether you choose to play or just attend for dinner and networking. Great marketing opportunities to sponsor for Northern NJ building industry professionals. 6:00pm

Texas Hold 'em Registration forms (click here)

Texas Hold 'em Sponsorship forms (click here)

Tuesday, October 13^th~ Joint Networking/Educational Meeting with National Kitchen & Bath Association (NKBA) at the new PIRCH Showroom @Garden state Plaza, Paramus. 6:30pm Social Hour, Food & Networking; 7:30pm-8:30pmSpeaker: Danny Wood of Sandler Training, “Networking—It’s a Contact Sport!”

(0.1 NKBA CEU)

Thursday, November 19^th~ Reno’s Annual Pre-Holiday Industry Networking Party. Bring your business cards to this annual building industry networking extravaganza at the beautiful Reno’s Showroom in Paterson. Make new connections with peers from several industry associations as you enjoy Reno’s outstanding hospitality with delicious food, beverages, music, prizes and much more! 5:30pm-8:30pm.

Thursday, December 3^rd~ Annual Winter Showcase Tabletop & Beefsteak Event.

** NEW VENUE THIS YEAR** The Brownstone, A Historic Landmark, in Paterson, NJ. Don’t miss this annual favorite event as you mix and mingle with builders and associate vendors at THE Northern, NJ mini-tradeshow. Then…enjoy a delicious traditional Beefsteak dinner and play in the bread-building contest for the charity of your choice. The Brownstone is famous for its Beefsteak, so be sure to attend to enjoy great food, great business opportunities and participate in a great event to assist with a local charity at this festive time of year.