10 West Hawaii Real Estate | June 22, 2016 Seventy-one percent of nonhomeowners Most believe student debt delays homeownership repaying their student loans on time believe their debt is stymieing their ability to purchase a home, and slightly over half of all borrowers say they expect to be delayed from buying by more than five years. This is according to a new joint survey on student loan debt and housing released recently by the National Association of Realtors and SALT, a consumer literacy program provided by nonprofit American Student Assistance. The results also revealed that student debt postponed four in 10 borrowers from moving out of a family member’s household after graduating college. Nearly three-quarters of nonhomeowners polled in the survey believe their student loan debt is delaying them from buying a home. Broken down by each generation and debt amount, the percent share is the highest among older millennials approximately aged 26 to 35 (79 percent) and those with $70,000 to $100,000 in total debt. Regardless of the outright amount of student debt, more than half of non-homeowners in each generation report that it’s postponing The survey, which only polled student debt holders current in their repayment, yielded responses from borrowers with varying amounts of debt from mostly a four-year public or private college. Forty-three percent of those polled had between $10,001 and $40,000 in student debt, while 38 percent had $50,000 or more. The most common debt amount was $20,000 to $30,000. Lawrence Yun, NAR chief economist, to light the magnitude student debt is having on the housing market and the budget of even those financially able to make on-time payments. While obtaining likelihood of stable employment and earning enough to buy a home, many graduating with this debt are putting homeownership on the backburner in part because of the multiple years KAILUA KONA KAILUA KONA 3bd/2ba. Great open oor plan! Enjoy the beautiful Kona sunsets from your lanai and cooled mountain & ocean breezes! Harry Hersh, RS $565,000 MLS#295024 it takes to pay off their student loans at an interest rate that’s oftentimes nearly double current mortgage rates. “A majority of non-homeowners in the survey earning over $50,000 a year – which is above the median U.S. qualifying income needed to buy a single-family home – reported that student debt is hurting their ability to save for a down payment,” he said. “Along with rent, a car payment and other large monthly expenses that can squeeze a household’s budget, paying a few hundred dollars every month on a student loan equates to thousands of dollars over several years that could otherwise go towards saving for a home purchase.” Among non-homeowners who believe student debt is delaying their ability to buy, over three-quarters – including over 80 percent of millennials – said their delay is because they can’t save for a down payment. Additionally, 69 percent don’t feel financially secure enough to buy, and 63 percent can’t qualify for a mortgage because of high debt-to-income ratios. KAILUA KONA PAHOA 4bd/2ba. Spacious home has open oor plan w/ vaulted ceilings. A few miles to the ocean. Leilani Estates is clean, green & beautiful! Raleigh Luitjens, RS $350,000 MLS#288211 their ability to buy. says the survey findings bring a college degree increases the KAILUA KONA PAHOA 3bd/2ba. Great single level home located at the end of the road, providing peace & privacy. Enjoy access to area pool & recreation center! Lynn Rumball, RB $239,500 MLS#295575 1bd/1ba. This ocean front complex allows for vacation rentals! Recent upgrades include quartz counter tops & new appliances! Views! Harry Hersh, RS $219,000 MLS#296511 2bd/2ba. Absolute Oceanfront, turnkey furnished at Kona Bali Kai! Watch year round sunsets, sea turtles & breaching whales from lanai! Walter Sinicki, RB $499,999 MLS#294255 WAIKOLOA 2bd/2ba. Stylishly appointed luxury home, situated just steps from the private Ocean Club & Grill. Sunsets, tropical breezes & more! Ken Anderson, RB KAILUA KONA 2bd/2ba. Turnkey furnished condo at Keauhou Kona Surf & Racquet Club! Sliders overlooking wrap around patio with grass lawn! Roxy Van Bockel, RS $365,000 MLS#295318 A little over a majority of those polled (52 percent) expect to be delayed by more than five years from purchasing a home because of repaying their student debt. One in five anticipates being held back three to five years as well as over 60 percent of baby boomers. Not surprisingly, those with higher amounts of student loan debt and those with lower incomes expect to be delayed the longest. Student debt preventing many young adults from leaving the nest Mirroring other recent data on young Americans being more likely to live with their parents than in any other living situations, almost half (46 percent) of young millennials polled currently live with family (both paying and not paying rent). Furthermore, 42 percent of respondents indicated student debt delayed their decision to move out of their family member’s home after college. Highlighting the difficulty many college graduates faced finding employment either before or immediately after the Great Recession, KAILUA KONA CAPTAIN COOK 2bd/1ba. Adorable beach home, just completed & ready for you to enjoy! Ocean, coastline, bay and sunset views are all yours! Lynn Rumball, RB $225,000 MLS#293029 KAILUA KONA 3bd/2ba. Nestled only minutes from the hustle of town, you will nd peace and relaxation within this beautiful upper level retreat! Saul Brecher, RS $329,000 MLS#294224 4bd/3ba. Penthouse Suite on top oor at Kona Bali Kai! Double length lanai! This condo has elegant décor & comes turnkey furnished! Walter Sinicki, RB $749,000 MLS#280921 Each offi ce is independently owned & operated www.Kona.HawaiiMoves.com Kona Offi ce 74-5450 Makala Blvd., Suite 103 808-329-0021 Download our mobile app @: app.c21.com -You’ll love it WAIKOLOA 3bd/2.5ba. Open oor plan & outdoor entertainment area boast 180 degree panorama views! Immaculate residence designed to show Aloha! Ken Anderson, RB $649,000 MLS#296420 HONAUNAU 4bd/4.5ba. Fabulous estate waiting for the right builder/investor to nish it! Located in South Kona, you simply must see this property! Thalia Naidu, RS $929,000 MLS#292649 3bd/3ba. Just minutes from Kona Village & short distance from the ocean. Lower level currently used as a private ohana! A MUST SEE!!! James Wood, RS $599,000 MLS#290892 $949,000 MLS#289984 FOR MORE PHOTOS, LISTINGS & MAPS GO TO: WWW.KONA.HAWAIIMOVES.COM
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