All Things Real Estate: Is education a steppingstone to homeownership?

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 All Things Real Estate: Is education a steppingstone to homeownership?

Over the years a defining factor for the majority of homebuyers has been location, location and the school district.  This was understandable, especially if you already had or planned on having children in the future.

Today’s high prices of homes, condos and co-ops dictate who has the wherewithal to afford to move to a highly rated school system.  Moreover, the availability and diversification of Special Education programs is another asset to consider when choosing a town.

This is a dilemma for many who want the best education for their children, but may be limited due to high interest rates and prices as well as their defined budgets and qualifications to be approved for a mortgage.

Paying high rents as opposed to buying to be in better schools is a trade-off in reducing your future wealth, but temporarily may be worth it in exchange for a better learning environment and opportunities for your kids.

Unfortunately, those with higher paying jobs or lucrative businesses have an advantage and are in a more beneficial position to purchase and choose better school systems.

The price of public education has escalated over the last decade to an unprecedented average level of $36,523 per student for the 11 school districts in the Town of North Hempstead, up an estimated $1,000 plus from the previous year as  reported in last week’s Blank Slate Media.

Since approximately 65% of your real estate taxes are related to your school taxes, there appears to be no end in site.  The majority of school budgets passed as education is still a priority for voters and their families as the most important and worthwhile facet and commodity of a top-notch community

I need to change direction for a moment to provide some explanation.  My personal and professional opinion: if you are currently residing in a school system that needs improvement, there is only one path that you must take as a homeowner.

It should be an utmost priority for you to be as involved as possible in your schools and the programs they offer that will be of the greatest benefit to your children’s education.  There is power in numbers and the more proactive you are in participating in all meetings with school administrators, the greater the likelihood that changes will occur.

To start, this can be accomplished at home by setting ground rules at an early age as to what you expect of your children as far as doing their daily homework, studying and most important after-school activities to keep them healthier, building strong character qualities and teamwork.

Sacrificing some of their free time and becoming disciplined will assist them in their future development and advancement later on in life.  Consistent conditioning and guidance will reap the rewards in their future endeavors.

Increasing the scholastic scores in math, science and English will raise the statistics and profile of that school.

Hopefully, this will also lead to better grades, going on to higher education and a successful career and/or business.  You as a parent are a critical and crucial component in order to have a successful outcome.

The end result could lead to opportunities that would not normally be available without an education.  A society is stronger and more successful when a family structure is solid and complete.

But what we are experiencing today is a divergence from what is truly needed.  It does start and begin with how the parents guide, teach and bring their children up, while simultaneously, the teachers and the school system also come into play.

This should be somewhat of a seamless process, but it is easier said than done. The bi-product of a quality school district are higher and more stable real estate prices.  There is a correlation between towns having higher home prices and appreciation and their statistically stronger scoring schools.

If you are lucky and fortunate and born with the ability to be creative, have natural talents and ideas that most do not, this will potentially enable you to be successful without any more than a high school or college education.

Although this is not the norm, college may or may not be a necessity for everyone, especially with todays’ exorbitant costs.  Succumbing to student debt for the foreseeable future may not be in the cards for many going forward.

This unfortunately has been a detriment to homeownership.   I believe college is no longer a guarantee for a better job, as there are many educated unemployed people with  Bachelor of Arts and Bachelor of Science degrees.

Today, the bare minimum requirement for many companies is earning a Master’s Degree to get your foot in the door to compete for a higher paying position in corporate America.  Twenty-plus years ago, both my daughter and son, only earned undergraduate degrees.

Fast forward to today when both would have needed a minimum of a Master’s Degree to be considered entrance into their very ambitious professions.  Competition is fierce and even having a Ph.D may soon be the standard to secure a higher paying position.  However, today opting or dropping out of college and becoming an entrepreneur can start with just one single idea as some notable individuals have had.

Mark Zuckerberg of Facebook, Bill Gates of Microsoft, Steve Jobs of Apple, dropped out of Harvard to start their massively successful corporations.

Even Sergey Brin and Larry Page dropped out of their P.hD programs at Stanford University to start Google.  However, Michael Dell of Dell Computers started his company in his college dorm room at the University of Texas.

The bottom line is the higher scoring school district, generally the better the education and the stronger the housing prices will be and the greater appreciation over the long run.

Philip A. Raices is the owner/Broker of Turn Key Real Estate at 3 Grace Ave Suite 180 in Great Neck. For a free 15-minute consultation, value analysis of your home, or to answer any of your questions or concerns he can be reached by cell: (516) 647-4289 or by email: [email protected] or via https://WWW.Li-RealEstate.Com

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