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 build 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.
Author:Lynda Western Phone: 602-919-0857 Dated: August 21st 2017 Views: 183 About Lynda: A family oriented person, Lynda has a passion for helping people in unfortunate situations. An Ariz...
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The partners of Re/Max Preferred Choice specialize in both the purchase and sale of residential and commercial real estate, as well as providing property management services. We have been in business since 1996 and have a long history of providing exceptional customer service to our agents.
One of the first decisions that must be made in the home buying p
"Justin Schlegel was referred to me by my Dad. When I asked my dad how he found Justin, he said "he was walking around the neighborhood handing out business cards. You just don't see that kind of hustle from most Realtors®." My parents were selling their home and were extremely impressed with how Justin handled the process.
Justin has since helped my sister sell her home, and helped find my parents a rental also. So, needless to say, when my wife and I were looking for our first home, he was the natural choice. I really like to research as much as I can before making a decision, especially one this important. I actually interviewed about 3 Realtors® before I met with Justin. They always say "everyone and their mom knows a Realtor®" but the problem is, everyone's mom isn't always a good Realtor®. I really wanted to make a well researched purchase, and do my due diligence before making a decision on what Realtor® we trusted our savings and first home purchase with. When I met with Justin I was blown away by his knowledge of the market and the home buying process. He really knew all of the details, and how to use those "tricks of the trade" in our favor.
I was sure my wife and I were not going to be the easiest couple to find a house for. Like most first time home buyers, we wanted a lot more home than we could reasonably afford, and we were up against a hard deadline. Justin was AMAZING! He was able to help us navigate buying our first home flawlessly. We looked through a ton of homes in our price range and Justin was extremely patient with us. Justin was able to find us a beautiful home that checked all of the boxes, really putting in the extra effort. He has continued to impress all of us in my family. We eagerly and confidently recommend him to all of our friends and family.
Anthony & Brittany in Phoenix, on behalf of Justin Schlegel