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3 reasons Americans should buy their first home before turning 35

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Photo: Robert Clark

Today, young Americans are delaying major life events, like home buying, longer than previous generations and that could end up costing Millennials down the road.

According to a new study by DC think tank the Urban Institute, delaying home buying by even a few years significantly reduce the wealth that Millennials generate over their lifetime.

“The findings suggest that the longer-term consequences of delaying homeownership should also be taken into account by today’s young adults, who are less likely to be homeowners than young adults from previous generations,” reads the study.

Most of today’s older homeowners bought their first home before they were 35, and over a quarter before they were 25, whereas only 37 percent of household heads ages 25 to 34 and 13 percent of those ages 18 to 24 owned a home in 2016.

And while the dynamics of the housing and financial markets have changed dramatically over the last thirty years, the advantages of early buying have not.

1. More bang for the buck

Those homeowners who bought their first home between ages 25 and 34 have the greatest housing wealth by their sixties.

At age 60 or 61, their median home equity (in 2015 inflation-adjusted dollars) is close to $150,000 —  compared to just over $76,000 for those who bought between the ages of 35 and 44 and just under $44,000 for those who bought after age 45.

“Ten years of appreciation alone can make a big difference,” reads the study.

2. Less is sometimes more

Homeowners who bought their houses before age 25 have a median home equity of $130,000, which is less than if they bought just a few years later. But, in this case, less sometimes turns out to actually be more.

“The youngest buyers have lower incomes, are less educated, and buy lower-priced homes. The median first-home value for these buyers is less than $70,000, while the median first-home value is around $125,000 for the other three groups,” reads the report.

So even though these homeowners ended up with less median equity, they ended up having the largest return on their investment. The bottom line is, those who bought houses before age 25 got the biggest bang for their buck.

3. Debt-free later in life

For those who bought their first homes when they were younger, greater home equity came from steady home price appreciation over their tenure and paying down their mortgage debt.

And, those owners who bought their first home between ages 25 to 34 lived in more expensive houses in their sixties than those who bought earlier (or later) — their median house value at age 60 (or 61) is $240,000.

Unsurprisingly, homeowners who purchased their home before 25 have lower median house values when they are older but also have lower mortgage debt because they have owned their home longer.

The bottom line is that the rewards of homeownership are long-term and younger Americans should start thinking about — and preparing — as early as possible for their golden years.

“As people age into retirement, they rely more heavily on their wealth rather than their income to support their lifestyles. Today’s young adults are failing to build housing wealth, the largest single source of wealth, at the same rate as previous generations,” reads the study.

Urban Institute used the Panel Study of Income Dynamics (PSID), a dataset that has followed US individuals since 1968, and used data for Americans who reached age 60 between 2003 and 2015. (The PSID switched to a biannual survey in 1997, so it used information at age 61 for those who were not surveyed at age 60.)

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7 Real Estate Industry Leaders To Follow Going Into 2021

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The world of real estate includes many aspects, like development, investment, selling, marketing and more. It’s a cutthroat industry that’s always on the move and doesn’t take breaks for anyone, which can make it challenging to get settled and scale a venture. With the proper commitment and hard work, though, any goal can be achieved.

A handful of individuals who get involved with real estate usually start on one path, then end up on another. An example would be when a real estate agent starts branching out into investing and flipping houses for themselves. There are so many different ways to generate income from real estate, it’s an endless supply of opportunities.

It can be risky to try your luck in the industry. It’s not a cheap venture by any means, and lots of people even face bankruptcy, but with the proper precautions and skills, anyone can thrive. There’s not even an age limit for real estate; you can get your license for it as early as 18 in most places. After that, it’s up to you to seize the moment and make big deals.

For today’s list, we have gathered the seven real estate industry leaders who you’ll want to keep an eye on in 2021. Their dedication and hard work speaks for itself, so let’s get into it.

Ricky Carruth

Ricky started selling real estate when he was twenty years old. It was 2002. He made a million dollars before the age of twenty-three and lost it all in the 2008 market crash. He then had to go back to roofing houses, went bankrupt and worked on an oil rig. During that time, Ricky read one hundred books, and realized this business is about people (not money). Ricky created the phrase “Relationships over Transactions”. He has showcased that every relationship you create with someone in your market, regardless if they buy or sell today or not, is worth 10-20 deals to you over the life of your career. Eventually, he got back in real estate in 2008. By 2014, he was selling 100 deals a year as a single agent and became the #1 REMAX agent in Alabama.

In 2017, he wrote two books and started coaching agents for free. Now he is one of the top coaches and speakers in the industry trying to help reduce the failure rate while still closing over 100 deals a year. Despite the pandemic, 2020 looks to be Ricky’s best year in real estate so far.

To connect with Ricky you can check out his Instagram @rickycarruth and he is known to answer every one of his Instagram DM’s.

Annetta Powell

Annetta Powell is a serial entrepreneur, a published author and the queen of building wealth and having multiple streams of income.  Annetta Powell became a big name in the world of real estate when she realized at the age of 25 that she wasn’t going to reach millionaire status by living paycheck to paycheck. She made an executive decision to ditch her blue-collar position as a materials coordinator with Johnson Controls, and take the reins to secure a promising financial future.

She purchased her first real estate property for $18,000 and turned a profit of $24,000. Since 2002, she has purchased, renovated, and sold more than 600 properties, totaling $50 million in sales. Just as things were really looking up, Annetta found herself under investigation for real estate fraud in September 2008. She was later indicted in November 2011 for Mortgage Fraud for assisting buyers with down payment money to purchase investment properties. In December 2014, she was sentenced to 24 months in prison and served her time at Alderson Federal Prison, which is known as “Camp Cupcake” where Martha Stewart served her prison sentence.

She now owns five tax franchises, known as the Tax Experts, a luxury party bus company and she continues to still build wealth in real estate.

Annetta is living proof that no obstacle is too big to overcome … that setbacks are merely setups for a comeback. She inspires others to persevere and has the real-world knowledge to help others minimize risk and achieve their entrepreneurial goals. To connect with Annetta you can check out her Instagram: @annettapowell.

Kent Clothier

Kent Clothier, is the founder of Real Estate Worldwide, where Kent focuses most of his time showing tens of thousands of other entrepreneurs how to break out in the real estate industry by building an active income stream, which they will then quickly diversify into passive investments. Kent’s family also owns one of the largest “turn-key” real estate investment companies in the US, REINation.

Born and raised in Dallas, Texas, Kent followed in the footsteps of his entrepreneur father. And at the age of twenty-three, he was running an multi-million-dollar business where he would purchase truckloads of groceries and flip them for higher prices across the country. By thirty, Kent led a team that had brought the company to $1.8 billion a year in the same industry. But all of that went away when he left the business in 2000, and for the next couple years, Kent struggled with losing everything and even having to go bankrupt.

In 2003 Kent turned to real estate, bought and flipped his first property, and quickly found an interest in the industry. A few years later, in 2006, he formed REWW to show other entrepreneurs how they could also benefit from real estate investing. He and his family used their knowledge and skills from previous ventures to scale the software and education businesses, as well as the investing business that is now flipping over 800 homes a year.

To connect with Kent, you can check out his Instagram: @KentClothier.

Robby Clark

Actor turned real estate investor Robby Clark has worked hard in the last seven years to create a scalable business model. Within that time, the entrepreneur has created three different companies, including a meal service company, and a landscaping business, all of which are based in Ontario, Canada. However, his focus is now strictly on his real estate venture.

Having gained success as a child actor, Robby lived comfortably until he eventually went bankrupt at twenty-two due to a lack of financial education. He decided to work on himself, and after extensive research on business & real estate, he took a swing at it himself.

Robby’s portfolio has grown to over 100 properties, with more being added at a regular rate. He has taken an interest in depressed and inadequate housing, where he employs members of the community to help revive the small cities and create a better living situation. Robby oversees and runs several management companies that are focused on their mission of providing adequate housing across Ontario.

To connect with Robby you can check out his Instagram: @robbywclark.

Dylan Suitor

Dylan Suitor is a top real estate agent within his city in Ontario, Canada. Having started his first business venture at eighteen, he quickly realized his love for sales, which is what pushed him in the direction of real estate investing. Dylan acquired his real estate license, and after his first transaction, he knew he found the career he wanted to spend the rest of his life working on and scaling. Four years later and he’s grown a team that consists of sixteen agents and support staff.

On top of rising to the top in his city, Dylan has also the top units sold at Keller Williams Signature. Through his speaking engagements that bring in attendance of 600+ people, Dylan offers his advice on becoming an entrepreneur and how to generate passive income for yourself with real estate investing.

To connect with Dylan you can check out his website here.

Steve Bailey

For the last sixteen years, Steve Bailey has been a successful real estate Broker, with over $1 Billion in total sales. Most of his career was with RE/MAX, where he founded, grew and mentored a group of over twenty Agents and achieved being the #9 team in North America and #24 across the entire network. Steve now works for the Kitchener location of Beverly-Hills based luxury real estate company, The Agency.

Steve was born in British Columbia, Canada after his parents emigrated from the United Kingdom due to his father’s work in an executive position within Scotiabank. Eventually the family moved back to England, before returning to Canada and then relocating to Puerto Rico. Ultimately Steve and his sister moved back to Canada to continue their education at Appleby College in Oakville after which Steve pursued an Honours Business Degree at Wilfrid Laurier. From there, a full-time award winning career in retail sales was the catalyst for change.

Once his family started growing, Steve began looking for a new home, and after an unsatisfying encounter with a local agent, he decided to pursue a career in real estate. After completing all the required courses, Steve obtained his real estate license in 2004. Over the years, he has earned the trust and recommendation of several celebrities including Shark Tank’s Barbara Corcoran, John Tesh, Gary LeVox of Rascal Flatts, and HGTV’s Scott McGillivray.

To connect with Steve you can check out his Instagram @soldbybailey.

Nick Blatin

Twenty-five year old Nick Blatin is a partner of Private Money Solutions, a direct hard money lending company that gives short term loans to wealthy individuals and uses their real estate as collateral. He began his journey into the real estate industry once he realized his passion for sales, and by the age of twenty-three, he was named the Number One Agent Under 25, with over $47 million in sales at the time.

Nick was born and raised in Los Angeles after his parents fled Russia to escape war and anti-semitism. Growing up, Nick was heavily involved in sports, eventually settling on mixed martial arts, which he thrived in. At seventeen, he was expelled from high school, which is when he decided to leave the MMA scene and focus on starting a business. Nick created a mobile car wash company, an energy drink company, a jewelry company, and a direct sales makeup and beauty company, all of which failed. However, the direct sales company left an impression on Nick, and he knew that’s what he wanted to focus on.

Nick’s aunt and uncle sat him down one day to talk to him about his dreams, where they suggested he focus on selling something worth a lot of money, like real estate. That’s all it took, and now has led Nick to his latest venture, Private Money Solutions. Now his company is loaning out $12 Million a month, with goals of reaching $15 Million by the end of 2020. Another interesting success within Nick’s life is that he appeared on the 12th season finale of Million Dollar Listing LA.

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Canadian fashion designer indicted on sex trafficking charges, according to US prosecutors

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New York (CNN Business)A Finnish-Canadian designer was arrested in Canada Monday, after he was indicted in the United States for allegedly using his fashion business as a “façade of legitimacy” in order to conceal sex trafficking and other illegal activity, federal prosecutors allege.The indictment, which was filed on Nov. 23 but not unsealed until Tuesday, charges Peter Nygard with nine counts including sex trafficking and racketeering charges, and alleges that between 1995 and 2020, Nygard and other employees allegedly used modeling and other fashion industry jobs to “lure victims into Nygard’s orbit and keep them there.”Victims were then “forcibly sexually assaulted, drugged, and/or coerced into sexual contact with Nygard,” the indictment claims. Many of the alleged victims were underaged girls who came from disadvantaged backgrounds or had a history of abuse.Nygard was arrested on Monday by Canadian authorities and is in custody in Winnipeg.He is awaiting bail and extradition proceedings, according to a press release from Royal Canadian Mounted Police. He was chairman of Nygard International until February, when he stepped down after his offices were raided by US authorities.A Canadian provisional arrest request revealed the “long term” investigation by US authorities into Nygard included interviews with “more than two dozen” alleged victims, and that he had at least 40 different corporate entities organized around the world — and that they maintain numerous assets including real estate, yachts and other property in multiple countries.Ken Frydman, a spokesman for Peter Nygard, had no comment when contacted by CNN on Tuesday. Frydman previously told CNN after Nygard’s company offices in New York City and California were raided that the allegations were false and intended to damage Nygard and his businesses.close dialog

CNN Business Nightcap

We read all day so you don’t have to.Get our nightly newsletter for all the top business stories you need to know.Sign Me UpBy subscribing you agree to ourprivacy policy.“Nygard welcomes the federal investigation and expects his name to be cleared,” Frydman said in a statement to CNN in February.According to Nygard International’s now-removed website, he was known for his “fast to market” clothing that uses an electronic system to quickly move clothes from being designed to stores.The indictment, unsealed Tuesday, mentions “at least dozens of adult and minor-aged females” who are alleged victims of Nygard, and prosecutors are asking any other victims to come forward.

FBI raids fashion mogul Peter Nygard's NY office after he was accused of sex assault and sex trafficking

FBI raids fashion mogul Peter Nygard’s NY office after he was accused of sex assault and sex traffickingProsecutors said Nygard and some of his employees used fraud, force and coercion to cause the victims to engage in commercial sex, and allegedly maintained adult and minor female victims “for Nygard’s sexual gratification and, on occasion, the gratification of Nygard’s personal friends and business associates.””Nygard maintained control over his victims through threats, promises to grant or withhold modeling opportunities and other career advancement, granting and withholding of financial support and by other coercive means including constant surveillance, restrictions of movement and physical isolation,” the indictment said.”Pamper parties” were gatherings allegedly paid for with Nygard’s business funds that offered free food, drinks and spa services, and prosecutors allege they were another way that Nygard and some of his employees recruited victims, the indictment claims. Some of his employees screened attendees for their physical appearance “to confirm that they would appeal to Nygard before allowing them onto Nygard property,” the indictment claims.Parties often happened at his private island in the Bahamas, but prosecutors allege Nygard engaged in sexual assault and sex trafficking in the United States, Bahamas, Canada and elsewhere, often using his employees and company funds to “intimidate, threaten and corruptly persuade” people who alleged wrongdoing, the indictment said.The allegations in the indictment match claims that victims have publicly made in lawsuits filed by attorneys Greg Gutzler and Lisa Haba, who told CNN that more than 100 victims have come forward with allegations of abuse since they filed a suit on behalf of 10 anonymous women against him in February.”It really has been an international human trafficking ring of a magnitude we’ve never seen,” Lisa Haba told CNN in a March interview, months before Nygard’s arrest and indictment.Haba and Gutzler said they have spoken to former employees who worked for Nygard and told them about their roles in luring, drugging and paying alleged victims of the designer.”They were company employees, and they were employed merely to effectuate the sex trafficking ring. That was what their job was,” Gutzler told CNN in March.After news of Nygard’s arrest, Gutzler said in a statement to CNN that the team representing victims hopes Nygard’s accomplices and co-conspirators are brought to justice.”On behalf of the dozens of survivors of decades-long abuse, we are encouraged that a small measure of justice for Peter Nygard is finally developing,” Gutzler’s statement said. “We are relieved that some measure of accountability is hopefully forthcoming, but we would be remiss if we did not state that this is something that should have been done decades ago.”

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This Big Bank Sees Housing Prices Taking a Big Hit in 2021

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Canada’s housing market remarkably broke records in 2020. When everybody expected the feared and seemingly fabled housing market crash to occur, the housing market has rallied amid the pandemic. While it may make some investors think that the housing price decline predicted by experts is no longer in the picture, one big bank sees the opposite happening in 2021.

National Bank of Canada (TSX:NA) recently notified its investors that the financial institution is preparing itself for falling home prices in the near future. A part of the Big Six Banks, NBC notified investors that it revised its outlook on the housing market based on data it analyzed up to October 31.

The bank presented different forecast scenarios and how they could affect housing prices in 2021. Take a closer look at its predictions on housing prices in 2021 and how you should consider preparing for it.

The base case prediction

The base case presented by NBC predicts a modest 5.2% decline in housing prices over the next 12 months. The bank sees unemployment rates at 8.9% in the same period, with the GDP making a 3% climb. The base case scenario presents a surprisingly low decline in housing prices than the predictions made by the Canada Mortgage and Housing Corporation (CMHC).

Optimistic forecast

The bank also has an optimistic scenario and how it could see a slightly lower decline. The bank’s optimistic scenario entails that the GDP grows by 3.7% and unemployment settles down at 8.4% in the next 12 months. Under these conditions, NBC predicts a housing price decline of 1.5% in 2021.

Worst-case scenario forecast

NBC’s worst-case scenario for the housing price decline entails a slight decrease of 0.4% in the GDP along with unemployment rates climbing to 10.4% in the next 12 months. In this scenario, the bank predicts a 9.9% decline in housing prices.

National Bank of Canada’s worst-case scenario for housing prices in 2021 resembles the predictions made by other financial institutions and non-vested risk firms. These are numbers for the national decline. It means that overvalued markets are likely to suffer the most. Undervalued markets may also see a decline but can fare better than the overvalued markets.

Preparing for the housing price decline could entail reconsidering real estate investments and moving to more reliable assets. The National Bank of Canada is the sixth-largest bank in the country. It does not have an immense international presence. In fact, 62% of its revenue comes from Quebec alone. However, the financial institution has expanded its operations to the rest of Canada in recent years.

As a relatively smaller bank, National Bank can implement changes and adopt new strategies faster than the rest of the Big Six Banks. It is also the best growth stock in the banking sector. It is trading for $72.40 per share with a juicy 3.88% dividend yield at writing.

Foolish takeaway

The possibility of a housing price decline and a second market crash is real. However, we might not see either of them until 2021. If you fear a significant housing price decline and its effects on your capital, I would suggest reallocating your funds.

Consider investing in stocks that can weather the short- to medium-term volatility well and provide you with significant long-term returns. I think that the National Bank of Canada could be an outstanding investment for this purpose.

Speaking of outstanding investment alternatives to real estate…

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