Why Rent When you can Buy!
Home ownership rates are the
lowest they have been in the last 50 years. Yet, a large portion of Americans
are still renting properties, instead of enjoying a home of their own.
Consumer reports
believe this is an issue because of a buyer's lack of trust in their ability to
purchase. It is still a long-standing notion that a buyer needs 20% towards the
cost of the home in order to move forward, but this isn't true.
With countless down payment assistant programs, and closing cost roll-ins, a
home owner could move in with as little as a few hundred to a
couple thousand dollars. Which is a huge difference in the time it takes to
save up to make the move.
With interest rates at an all-time
low, home ownership in today's market is a great investment. The money saved
over a mortgage's lifespan can result in tens of thousands of dollars, if not hundreds. That's
more money in your pocket today. Don't wait to buy when interest rates soar
again. With low interest rates, that means your monthly mortgage payments are at a significantly lower cost, as well. With such a heated
housing marketing, rental prices are soaring, and statistics are constantly showing
that home ownership can be equivalent to your rental rate each month,
if not less. Why get stuck in a small 2-bedroom apartment, if you can move into
a home a pay a monthly rate that is the same, and get a 3-bedroom house with a
great backyard?
There is also a fear that a home
can keep you "stuck" or "rooted" to one place, without an
easy transition out if you decide to move. Although the future of the housing
market isn't easily predictable from
location to location, you can always discuss with your agent about buying a
home in an area that has a strong turn-over rate when a home hits the market. The equity builds up when it comes time to selling is going to
be far more beneficial, than if you put money into a rental and decided to
move. The money from selling the property can be used to purchase a new home. With renting, there would
be no additional funds to transition into a new place.
Now imagine if you were renting a
home for $2000/month. If your landlord is renting to make a profit, think how
much less you'd be paying on a monthly basis towards your mortgage, if the home was yours.
Then you wouldn't be paying a landlord to profit from you, you'd be paying a
reasonable rate, and get to call the property your own. Discuss with Me and a lender the steps you need to
take towards home ownership, you might be happily surprised about the type of
home you can afford to move into.
