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 thatthey thinkthey’re not qualified orthey thinkthat 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:Marc Joseph Phone: 239-424-8805 Dated: August 31st 2016 Views: 1,171 About Marc: Marc Joseph, Broker / Owner
Our office is the leader and expert in the foreclosure market. As the...
Our office is the leader and expert in the Real Estate market. As the broker for over 24 years in Lee County, I have been interviewed by the following media sources, NPR, Today Show, NBC Nightly News, Wall Street Journal, Washington Post, LA Times, Miami Herald, PBS NewsHour, Time Magazine, Life Magazine, Realty Trac's Foreclosure Report's, ABC Dateline, CNN Court TV, Jay Thomas Show, FGCU Happening Now, Florida Realtor Magazine, Boat Us Magazine, and countless international interviews. All as a result of our extensive market knowledge and proactive approach to selling homes.
We are direct Fannie Mae and Direct Freddie Mac Vendors with offices in Lee County, Pinellas County, Marion County and Duvall County.
We are the REO market leaders and the only company in SW Florida with a Free Foreclosure Tour Bus. We are the experts and have the credentials to back it up. I also hold a REO certification from the prestigious Five Star Institute. This certification is only earned by a select few in our industry that have passed an intensive course and test. With over 24 years of local experience and credentials only one real estate in SW Florida can demonstrate. My company prides itself on customer service and one on one attention. Designations also include the GRI (Graduate of the Real Estate Institute). Former CMA Lic, and a 4 year BS degree from Florida State University. Finally, born here in Lee County I believe in making a proactive difference in our local real estate market.