Home ownership rates are the lowest they have been in the last 50 years. A significant portion of Americans is still renting properties, instead of enjoying a home of their own. Consumer reports
Why Rent If You Can Buy
Home ownership rates are the lowest they have been in the last 50 years. A significant portion of Americans is 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 a 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 of thousand dollars. Which is a huge difference in the time it takes to save up to make a 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 consistently showing that home ownership can be equivalent to your rental rate each month, if not less. Why get stuck in a small two bedroom apartment, if you can move into a home a pay a monthly rate that is the same, and get a three bedroom house with a great backyard?
There is also 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 high 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 off of you; you'd be paying a reasonable rate, and get to call the property your own. Discuss with your agent and 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.
For all of your DFW real estate needs: firstname.lastname@example.org
Born and raised in the heart of San Diego, Kimberly studied psychology and business at Southern Methodist University. She fell in love with Texas and prides herself on her vast knowledge of the area, ....
Latest Blog Posts
According to Black Knight Financial Service’s Mortgage Monitor Report, 1.5 million Americans have purchased a home with down payments under than 10% over the last 12 months. This is