& Albany County Post - The Altamont Enterprise

6B Spring Real Estate Section and Home Buying Guide The Altamont Enterprise – Thursday, May 17, 2012Kitchens and Additions SpecialFull 2 Car Garage 24’ x 24’w/ FREE garage door opener ..................$14,600. 00Wood Garages 24’ x 24’ ...starting at... $8,900. 00Call and ask us about our Complete Home Remodeling Specials!CUSTOM BUILDING1416 Thompsons Lake Rd., East Berne, N.Y. 12059518-872-9702Fully Insured518-588-6060 CellOver 50 Years In Business!RESIDENTIAL & COMMERCIALCONTRACTORSNew Construction * Building* RemodelingElectrical*Excavation* & Site Work*Sealcoating“Building Quality With Integrity”www.vinnick.com• Custom Homes• Sunrooms• Expansions518-861-8688Specializing inNew Homes& AdditionsGive Yourself a New Look For Spring!• Kitchens• Finished Basements• RenovationsWe also build on your lot!439-4663swiftbuilders.comRenovate yourRenovate homeowners yourhomeowners policy.policy.CommentaryStudents, burdened with debt,can’t climb the hill of bills to home ownershipBy Jordan J. MichaelIt’s a great time to buy a house –– interestrates are at an all-time low and so are housingprices –– but young professionals aren’tbuying because they’re being killed by collegeloan debt.The federal government gives out studentloans that follow graduates forever if unpaid.Right now, the nationwide balance of federalstudents loans is $902 billion dollars, withprivate student loans adding another $140billion.Let’s say you make $36,000 annually, buthave a $500 student loan payment everymonth. You’re not getting a house. It’s notrealistic.That’s too bad because there are about fourmillion homes in foreclosure. Inventory is faroutweighing demand.The “millennial” generation is age 21 to 30.Dee Centi Jones of Realty USA said that, fordecades, the median age for a home buyer hasbeen 39. This year, it’s jumped to 45. Homepurchases for the 28-to-35 age group has declined10 percent in the last decade.“The home-buying population is aging,”Jones said. “I haven’t worked with anyoneunable to buy because of student loans and Ibelieve the reason for this is that, by the timepotential buyers start viewing homes, theyhave typically done a lot of research online.They are very educated and aware if theyqualify for a loan or not.”The Federal Housing Adminsitration statesthat a 29/41 qualifying debt-to-income ratio isacceptable for home buyers. This means thatthe borrowers housing cost is no more than29 percent of their income, and their monthlydebt added to the housing cost is no more than41 percent.Two out of three college students take outloans.“Student debt has a huge impact on theability to qualify for a mortgage,” said Jones.“Lenders don’t necessarily view education asa negative, but other factors come into play.There’s a certain amount of skepticism orhesitation stemming from the unstable jobmarket and sluggish economy.”Lauren Meacham, an agent for PrudentialManor Homes, bought her first residencein 1973 at the age of 19. A home being purchasedby someone that young is practicallyunheard of in 2012. If it does happen, thenthat person is either extremely lucky or afamous celebrity.“I haven’t seen a lot of young couples,” Meachamsaid. “People aren’t thinking of houseswhen they get out of college because the loansare horrendous. I think the buying market isgetting older.”Tuition at United States colleges hasswelled by over 900 percent since 1978. TheProject On Student Debt estimated that thestandard college senior in 2009 graduatedwith an outstanding loan of $24,000. However,it’s not atypical for a recent graduate to owe$50,000 or more.Joe Stanco, a Realtor for Caldwell Banker,said that he recently did business with a youngwoman that had an annual salary of $60,000.She was ready for a home, but her college debtwas too huge, so she had to back out.“I’m not seeing buyers in their mid-20s,”Stanco said. “Young buyers are closer to 30years old. People are sitting on the fence becausethey want to check things out.”When high school students are signing upfor college, they should pay more attention tothe actual cost of the education. The price canbe blurred by the excitement and overall joy ofattending college. Freshmen aren’t hammeredwith information about what they’ll owe whenthey graduate.Students are told that they’ll be rewardedfor all the hard work they did in college. Realistically,graduates will be underpaid becausesalaries haven’t grown nearly as much astuition costs. Therefore, young professionalsrent apartments or move back in with theirparents.This affects people who want to sell theirhomes. If the millennial generation isn’t buying,then current sellers can’t move.“Millions of people are underemployed andnot making what they’re worth,” said MikeCappadozy of Homestead Funding Corp. “So,something has to take a hit, and the studentloan goes belly-up. The student payments arethrough the roof.”Cappadozy said that student loans aren’ta big reason why people don’t buy housesbecause the conversation doesn’t even getthat far. “I’ll ask a customer if they’ve triedto consolidate if I see all these loans,” he said.“I try to educate them.”That’s the issue. Young people aren’t eventrying to buy. Houses remain vacant.I owe New England College $14,000, whichis more than half of my current salary. I wanta house, but I can’t have one yet.A college degree may be a ticket to a career,but a post-graduate salary doesn’t permit aproperty of your own.Elaine VanDeCarr, Agent848 Kenwood AvenueSlingerlands, NY 12159ElaineBus:VanDeCarr,518-439-1292Agentelaine.vandecarr.cklr@statefarm.com848 Kenwood AvenueSlingerlands, NY 12159Bus: 518-439-1292elaine.vandecarr.cklr@statefarm.comGreat insurance. 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