Are you renting now? Have you been renting for several years? Is your rent increasing…again!? I suggest a possible solution so you will be lowering your housing costs and increasing your wealth. Consider buying a home. If you are approved for a 30-year fixed rate loan, then your payment will be the same for 30 years. It will not increase! WOW.
Below are a few more great reasons to buy a home:
Here are a few things you will need:
The Mortgage Fee Coach also suggests:
Goldman Sachs Says Owning Is Less Expensive Than Renting
In recent research, Goldman Sachs (GS) found that for a typical 30-40 year old — Millennials would be in this group — it is still cheaper to own than to rent. Goldman Sachs used the GS Housing Affordability Index (HAI). Their HAI focused on homebuyers who could afford a 5% down payment and who have to pay mortgage insurance. According to their research, real rental costs jumped 30% from 1980 to 2013, which is less than 1% annual average growth. Here’s the problem: during this same time period, real income for renters remained stagnant, indicative of elevated rental burden. This means that renters who used to spend one quarter of their income on rent, now find that their rental cost has jumped to one third of their income. Note: In some parts of California, single-family home rental rates increased by as much as 17% year over year 2015 vs. 2014!
According to Zillow, buying remained a better bargain than renting at the end of the second quarter of 2015. Home values and rents have seen an increase, as the median home value has risen 3.3% and median rent has increased 4.3%. This means someone looking to rent the median-price home and making the median income should expect to pay 30.2% of their income each month on rent, whereas homebuyers might anticipate paying about 15.1% of their income on a mortgage for a median priced home (depending on where you live, of course). According to Zillow, the national average income share to support the rising rent prices is at the highest level ever, whereas the share of income needed to purchase a home is at all-time lows.
Home prices are higher in California. So are rents. So while it might be difficult, try to tighten that belt to save for a down payment. It is doable! You will be glad you did, because now is the right time to buy.
I’m the Mortgage Fee Coach, Dan Stone. I can find great sources for financing your new home, and would be glad to give you a FREE 15-MINUTE CONSULTATION to inspire and motivate you.
I WOULD LOVE TO SEE YOU IN A NEW HOME INSTEAD OF COLLECTING RENT RECEIPTS!
Please call 949-484-6322 now.
Or send an email to Dan@MortgageFeeCoach.com