Become A Home Owner And Leave The Rent Behind

Dated: 01/30/2017

Views: 219

While renting a home might seem the easiest way to manage your finances, actually owning the property is much more beneficial. While the initial investment can be quite steep, the guarantee of the return on investment (ROI) over the years wiImage titlell help validate that investment. Being a renter means that you have to cope with bills that are not contributing to ownership in any way, shape or form. Living in a place you call yours allows you to lock in expenses related to housing and set yourself up for a comfortable future over time. However,the big questions are, where do you start and how do you get it done?

A rough situation for renters

In the recent past, experts have pointed out the development of some are referring to as “the rent affordability crisis”. It is essentially a situation where there are lower vacancies for renters currently available. This is compounded by the fact that developers are not constructing as many new rental properties as they used to. This of course correlates to a rising demand, and a scramble for what is out there. This increase in demand coupled with reduced availability will also result in an increase in rates over time. We have already seen rents equalling and even surpassing mortgage payments.

When buying becomes more affordable than renting

Having a home impacts your general state of well being. Home ownership correlates very positively with outlook, and quality of living. As the cost of rent goes up year after year, those who are dreaming of one day owning a homes may actually end up trapped in a difficult position.

While you choose to rent you are minimizing your possible contribution to a longterm investment. You’ll encounter minimal opportunity for saving to purchase a home of your own.

Currently, 85% of the American renters consider themselves to have a “huge rent bill”. However, what is even more interesting is that people in over 75% of the country can certainly buy at an overall cheaper rate than they can rent for. At this point, the most obvious question, of course, is; why aren’t these renters buying?

What are your options?

The problem in the current market is lack of information regarding just how much enough is in terms of down payments and credit scores. If you take time to inspect the factors that enable individuals to purchase a home, you’ll realize there are a lot more people who are actually qualified to buy a home, they just don’t know it.

An example of sometImage titlehing that may prevent someone from looking into homeownership is the down payment. A large number of people don’t know just how much of a down payment is required to actually own a home. According to recent statistics, it can actually be very easy to save up to the 3% required in most areas. This only takes a maximum of two years under a structured and disciplined saving plan. Turns out you might have already saved enough for your next home without even knowing it!

Saving for your next home may not be as difficult as you think. Sure, identifying a good mortgage plan is strenuous for all of us but when you know what to look for, things can turn out smoother than you expected. You are going to be thinking about your down payment all the time, so there is a need to draw out a plan according to your level of income and the percentage you can save off of that. Keep in mind that the percentages you might need to put down typically vary across the board, depending on your approach and the type of mortgage you are looking for.  If you are expecting to get money back from taxes, that could be a great start to the down payment fund.

Do not allow rising rent rates to postpone your plan to buy a home. If you are having a difficult time doing the required research, talk to an agent and have them help you. Real estate agents can help you understand the rates available in your market, as well as offer you first hand experience relating to the way things may eventually pan out for you. Always be on the lookout for attractive deals and make your move at the right time, with the right information.

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Use the search link above to choose some homes you're interested in, then Call me  and we'll find the one that is best for you.

Dave Evensen - Broker Associate / REALTOR® - (303) 877-6775

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Dave Evensen

Dave Evensen is a real estate agent servicing Denver, Littleton, Highlands Ranch, Lone Tree, Castle Rock and surrounding areas. Dave attended Metropolitan State College and the University of Northern....

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