ShareThisHigh Rentals Pushing People to Buy Homes!
With Apartment and rental properties rents climbing across the U. S., but the cost to buy a home still low, housing analysts expect to see more apartment dwellers opting to become homeowners. Over the past 90 days I had several clients looking to rent realize that it was cheaper to purchase a home instead of renting. Most of my clients that have purchased a home between June 2011 and January 2012 have received a 3.75% interest rate. With sellers being eager to sell their houses, most are willing to give a sellers’ concession. Some sellers are willing to give as high as 6% towards a buyers’ closing cost (FHA buyers’). If a buyer can come up with their 3.5% downpayment (some first-time home buyers can use grant programs towards their downpayment) and get a sellers’ concession they can become a homeowner.
I believe rents will continue to climb as more and more people who are losing their homes due to short sales and foreclosures hit the rental market. This is great for landlords but bad for renters who are finding it harder to find what use to be cheap rentals. Every week I am explaining to people looking for rentals, that the areas they desire are renting for $1,300 instead of the $900.00 they are thinking it should be. Now is the time to buy. Hoping to save by delaying the purchase of a home may result in higher housing costs while you’re waiting, thus achieving the exact opposite result. It will become that much harder to save the required down payment amount, even for low-down payment programs like FHA, if the percentage of your income getting eat up by rent continues it’s upward climb.
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