As rental rates continue to rise nationwide, don’t let yourself get caught in the rental trap. Here are a few key points you need to know.
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There are many benefits to homeownership. One of the top benefits is protecting yourself against rising rental rates by locking in your housing costs for the life of your mortgage.
Don’t get caught in the rental trap. A recent article by Apartment List stated that rental rates are up 2.7% year over year at national levels. Year-over-year growth continues to fall between the 2.1% rate from this time last year and the 3.4% growth rate from October 2015.
The article continued by stating that, despite seasonal slowdown, rents are still up year over year in 89 of the 100 largest cities. Additionally, the Urban Institute revealed that over a quarter of all rentals are spending at least half their income on rent.
Don’t get caught in the rental trap.
It is actually cheaper to buy a home than it is to rent. Nationwide, it is 37.4% more cost effective to buy rather than rent.
A recent nationwide survey found that 80% of millennial renters plan to eventually buy. However, 72% cited affordability as a primary obstacle. Aside from affordability, one in three millennial renters have concerns about their credit scores. Also, many first-time buyers believe they need a down payment of 20%.
This is not truly the case. Still, this belief holds many back from obtaining their dream home. Certain loans allow buyers to afford a home for just 3.5%. So, if you are ready and willing to make the move into homeownership, speak with a professional and find out if you are able.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
