There are many benefits to homeownership. One of the top ones is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.
Don’t Become Trapped
Jonathan Smoke,Chief Economist at realtor.com,reportedon what he calls a“Rental Affordability Crisis.”He warns that,
“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”
In theJoint Center for Housing Studies at Harvard University’s 2015 Report on Rental Housing,they reported that 49% of rental households are cost-burdened, meaning they spend more than 30% of their income on housing. These households struggle to save for a rainy day and pay other bills, such as food and healthcare.
It’s Cheaper to Buy Than Rent
In Smoke’s article, he went on to say,
“Housing is central to the health and well-being of our country and our local communities. In addition, this (rental affordability) crisis threatens the future value of owned housing, as the burdensome level of rents will trap more aspiring owners into a vicious financial cycle in which they cannot save and build a solid credit record to eventually buy a home.”
“While more than 85% of markets have burdensome rents today, it’s perplexing that in more than 75% of the counties across the country, it is actually cheaper to buy than rent a home. So why aren’t those unhappy renters choosing to buy?”
Know Your Options
Perhaps you have already saved enough to buy your first home.HousingWirereportedthat analysts atNomurabelieve:
“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment.
It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)
Many first-time homebuyers who believe that they need a large down payment may beholding themselves backfrom their dream home. As we have reportedbefore, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!
Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Let’s get together to determine if you could qualify for a mortgage now!
Author:Sandra De La Rosa Phone: 480-375-0016 Dated: September 6th 2016 Views: 265 About Sandra: ...
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Ian Toner has been a Real Estate Professional for the past 12 years and takes great pride in helping both buyers and sellers with their Real Estate needs, whether it is helping a family purchase a new home or sell their current house. He graduated from Arizona State University with a degree in Criminal Justice but decided right after college that he wanted to sell Real Estate full time. Ian understands this is one of the biggest decisions of your life and with that he brings professionalism along with a vast understanding of the current market here in the valley. He feels that every person and family deserves 110% at all times and makes sure he is there for them day or night. Growing up with great family values has helped hi m transition into being a great Real Estate Professional and he continues to work as hard as possible to make his clients feel comfortable and at ease with their purchase or sale. If you are looking to buy or sell, contact Ian today!