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Last changed: February 07. 2003 6:48AM

Home owners: the next generation

The next wave of home ownership is going to a younger market

By Allison Ballard
Staff Writer
allison.ballard@wilmingtonstar.com
At 16, Christian Meighan was basically homeless, moving from home to home of family and friends while he finished high school in South Florida. But last October, at 25, he became a homeowner.

"There's an overwhelming feeling of having a stake in your community," he said. "I feel like I'm now a Wilmingtonian."

Mr. Meighan is part of a new generation of homebuyers, younger people who are taking the plunge because of low-interest rates. The median age of first-time homeowners dropped from 32 in 1999 to 31 in 2001, according to the National Association of Realtors. And it's estimated that there were around 321,000 homes purchased by those 25 and younger in 2001, up from 305,000 the previous year.

"I started realizing I was throwing my money away," Mr. Meighan said. "I wanted to start investing."

Sean Pascoe, who is 25 and engaged to be married, was in a similar situation. He's had a steady job since he graduated from college and didn't think it was wise to continue renting.

"The interest rates are at an all-time low," he said. "I jumped into it. And I think it's well worth it."

He's not the only one who feels that way. One of Mr. Pascoe's co-workers, as well as some of his friends in the Washington, D.C., area – who are all about the same age – also recently purchased houses.

Bobbi Crawford, president of Delta Mortgage in Wilmington, said that about 30 percent of her clients are under 30. Most of them want to put their rent money to better use. After all, $750 in rent, for example, would translate into a payment for a $125,000 home.

Paul Hicks, executive director of the Cape Fear Regional Community Development Corporation, a local nonprofit organization, also has started seeing younger people in his homebuyer education seminars, which is something he provides in an effort toward community improvement.

"Economic development usually involves homeownership and starting a business," he said. "I can tell you when I was growing up, we never thought about being homeowners. We were renters."

But that attitude is starting to change, he said, and people who wouldn't have thought it possible a few years ago are starting to make mortgage payments.

"People act differently when they own their home," Mr. Hicks said. "People generally don't let something they own run down."

Young homebuyers are enjoying tax and investment advantages – and juggling those with the possible disadvantages of the expense and upkeep of owning a home.

As Mr. Hicks said, when you're a homeowner, there's no landlord to call when something goes wrong.

With all of the new housing developments being constructed in and around Wilmington, though, young people can choose new homes that require less upkeep, Ms. Crawford said. But for those who prefer older homes, they should keep repair costs in mind.

For potential young buyers who don't think they can afford a home, there are programs available from banks, Realtors and the government meant to put more people in homes.

To qualify for federal dollars, you need to earn a low to moderate income, Mr. Hicks said.

Often, what Angie Ki of Lumina Realty sees arepotential homebuyers who don't have enough money saved for a down payment or closing costs. As a way to offset those payments, people who have a skill, such as plumbing, do that work on their own home and they are able to put that earned credit toward their houses.

"We work with them to get equity pay," she said.

When Tammy McKittrick, 25, was pregnant with her second child, she and husband Josh knew they'd need a bigger place. With what they would pay in additional rent, they considered buying but didn't really think it would be feasible.

"A year ago, I didn't think there was any chance I'd own a home," said Mr. McKittrick, who is 29.

They moved into their newly built home about a month ago. To help with the closing costs, Mr. McKittrick painted the house's interior and also poured the concrete for the driveway and back patio.

One of the problems that some young homebuyers face, though, is in the tangle of the real estate industry.

Mr. Pascoe was given a book to read that explained terms he would come across in the process. And Mr. Meighan describes his closing as a "whirlwind." He left the offices, after signing lots of papers, a little confused about whether he actually owned the home or not.

"You have to try and find people you can trust," Mr. Pascoe said. "But I knew I was going to be here at least five years. And everyone told me that was a good amount of time to put into a house.

"We're all about location," he said, of his three-bedroom, 1150-square-foot house. "We're close to the beach."

And Mr. Meighan, who was living in an apartment with his mother and seven siblings after his parents immigrated to this country from Belize, considers himself proud to be the owner of a three-bedroom townhouse near the university.

"I'm so excited to own my own home," he said. "I laid my own floor and put up plantation blinds. I've been doing a lot of home work, both literally and figuratively."

Allison Ballard: 343-2376

allison.ballard@wilmingtonstar.com

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From: The Staleys
Date: April 2000

We want you to know how very satisfied we have been with our beach home that you built. It's hard to describe the feelings we experienced when Hurricane Floyd struck…only 8 weeks after we moved into our new home. We almost convinced ourselves to be prepared for missing shingles or siding. To our relief, there was absolutely no damage inside or out.

The way our home withstood the storm was a final confirmation we had worked with an excellent builder. You were very responsive to our questions and needs during construction. The house layout makes excellent use of space, and the attention you give to good lines and livability shows. We appreciated your flexibility - quickly returning phone calls and meeting in person with us. We're pretty picky and you helped us create a special beach home.

Thank you very much. We look forward to many sunny, seaside days.