Careful…Don’t Get Caught in the Rental Trap. There are many benefits to homeownership. One of the top benefits is being able to protect yourself from rising rents by locking in your housing cost for the life of your mortgage.
Don’t Become Trapped
“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 the Joint Center for Housing Studies at Harvard University’s 2016 State of the Nation’s Housing Report, they revealed that “The number of cost-burdened households rose to 21.3 million. Even more troubling, the number with severe burdens (paying more than 50% of income for housing) jumped to a record 11.4 million.” 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. HousingWire reported that analysts at Nomura believe:
“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 be holding themselves back from their dream home. As we have reported before, 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 can qualify for a mortgage now!
US Housing Market Continues Move into ‘Buy Territory’! The index examines the entire US housing market and then isolates 23 major cities for comparison.
If you thought about selling your house this year, now may be the time to do it.
Home Mortgages: Rates Are Up And Requirements Easing. The media has extensively covered the rise in mortgage interest rates since last fall
Millennials Flock to Low Down Payment Programs. Among millennials who purchased homes in January, FHA loans remained popular, making up 35% of all loans closed
Why it’s Important To Hire A REALTOR To Sell Your Home. When a homeowner decides to sell their house, they obviously want the best possible price for it with the least amount of hassles. However, for the majority of sellers, the most important result is getting their homes sold.
Some industry experts are claiming that the housing market may be headed for a slowdown as we proceed through 2017, based on rising home prices and a potential jump in mortgage interest rates.
Spring 2017 – Buying A Home? Be Prepared Fo Bidding Wars. Traditionally, spring is the busiest season for real estate. Buyers come out in force and homeowners list their houses for sale hoping to capitalize on buyer activity.
There are two major misconceptions that we want to address today.
The success of the housing market is strongly tied to the consumer’s confidence in the overall economy. For that reason, we believe 2017 will be a great year for real estate. Here is just a touch of the news coverage on the subject.
California Home Prices Up 6.6% Last Quarter. California outpaced national home price increase of 6.15%.
Considering a Luxury Home? Now’s The Time! If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time…
Things To Consider when Selling Your House – Spring 2017 …Here are five reasons listing your home for sale this spring makes sense.
1. Demand Is Strong
Wishing you the best day of your life. Let’s celebrate like no other. You are the light of my life. Hugs and kisses.
4 Reasons To Buy Your Home This Spring. 1. Prices Will Continue to Rise
CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.9% over the last 12 months.
Best Month and Day to List Your Home? This is a long sight after question in the competitive real estate market place today. Per this study by
Is Your Luck Running Out In Buying A Home? Freddie Mac predicts that interest rates will increase to 4.8% by this time next year…
Which Homes Have Appreciated the Most? Home values have risen dramatically over the last twelve months. The CoreLogic report broke down appreciation even…
The inventory of existing homes for sale in today’s market was recently reported to be at a 3.6-month supply according to the National Association of Realtors