One More Reason to Own Your own Home – Skyrocketing Rents
When the real estate bubble burst, millions of Americans, many right here in NYS, found themselves out of their homes, but still needing a roof over their heads. They became renters.
And then, in perfect accord with the laws of supply and demand, rents began to rise.
Now as many as 3 million former homeowners are expected to rebound and become homeowners again within the next five years. In the meantime, investment property owners in many areas can almost name their rental rates – so they do.
Right now, studies are showing that it's 35% cheaper to buy than to rent, and that's not apt to change soon.
If you're renting, you should expect to pay more next year than this year – and even more the next year and the next.
Meanwhile, if you purchase a home with a fixed rate of interest, the only parts of your monthly payment that could go up are the taxes and insurance. As your income rises, your base housing expense will not.
In the panic immediately following the housing crash, banks tightened their policies and most loans required 20% down. But that's changed. If you haven't checked into home ownership lately, you may not be aware that there are once again loan programs offering down payments as low as 3% - and zero percent for veterans. You do still need to have a steady income, a good credit rating, and a minimum of debt – but that protects you as much as it protects the bank.
If you want to own a home, visit a local mortgage broker and find out where you stand.
Do you need a few more reasons to consider owning your own home soon? Here are a few:
Right now, you are buying a house – but it's for your landlord.
You're not building any equity.
You're not getting any Federal income tax deductions for your housing expense.
You're not putting down any roots.
Your landlord could decide not to renew your lease at any time.
Your landlord could fail to make his or her payments – and "your" house or apartment could be foreclosed upon.
You need permission to paint a room or hang a picture. In fact, you can't do much of anything to personalize your space.
You need permission to own a dog or a cat – or to plant a garden.
Every year you wait rents will go up and home prices will go up. And one of these days – interest rates will go up.
Are you ready? Some of the best homes in will be on the market through the winter season, and they're owned by people who are serious about selling! This may be the perfect time to take advantage of 0% down USDA loan!
So call. I'll be happy to put you in touch with a couple of lenders I trust so you can get pre-approved. Then I'd love to take you shopping.
Maryah Mac Donald