Rents Are On The Rise Dont Get Caught In The Rental Trap

Dated: 12/19/2017

Views: 36


Rents Are on the Rise: Don't Get Caught in the Rental Trap!

Rents Are on the Rise: Don't Get Caught in the Rental Trap! | MyKCM

There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped

A recent article by Apartment List addressed rising rents by stating:

“Rents are up 2.7% year-over-year at the national level. 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 continues explaining that:

“Despite the 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 renters, or 11.1 million households, are severely cost burdened, spending at least half their income on rental housing.

These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.

It’s Cheaper to Buy Than Rent

As we have previously mentioned, the results of the latest Rent vs. Buy Report from Trulia shows that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 6.5% less expensive in San Jose (CA), all the way up to 57% less expensive in Detroit (MI) and 37.4% nationwide!

Know Your Options

Perhaps you have already saved enough to buy your first home. A nationwide survey of about 24,000 renters found that 80% of millennial renters plan to eventually buy a house, but 72% cite affordability as their primary obstacle. Aside from affordability, one in three millennial renters have concerns about their credit scores,and another 53% said that a down payment is an obstacle.

Many first-time homebuyers who believe that they need a large down payment may be holding themselves backfrom their dream homes. As we have reported before, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap that so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Let’s get together to determine if you can qualify for a mortgage now!

Latest Blog Posts

If The Next Recession Is In 2020 What Will Be The Impact

Next Recession in 2020? What Will Be the Impact?Bottom Line:A recession is probably less than two years away. A housing crisis is not.  More Here >>  http://bit.ly:/

Read More

House Buying Power At Near Historic Levels

Bottom Line:Even though home prices are increasing rapidly and are now close to the values last seen a decade ago, the actual affordability of a home is much better now. AsChief EconomistMark

Read More

Rising Interest Rates Have Not Dampened Demand

Bottom Line:First-time homebuyers know the importance of owning their own homes and a spike in interest rates is not going to keep them from buying this year! Their biggest challenge is finding a

Read More

How Long Do Most Families Live In A House

What does this mean for housing?Many believe that a large portion of homeowners are not in a house that is best for their current family circumstance; they could be baby boomers living in an ,

Read More