Rent vs Buy?

rent or buy

RENTS CONTINUE TO RISE

Have you been thinking of buying your own home?  Have you checked the rent vs buy costs?  Rental rates throughout the country are continuing to rise. With the average rent having an 0.8 percent increase and a 3.4 percent year-over-year increase.

If you are spending a $1,000.00 a month rent of a home, you may be able to purchase a home of your own and stop paying someone else’s mortgage.  Sometimes for even less than what you are paying for a rental.

With the way rent continues to rise, it’s a great time to consider purchasing a home. Whether you’re a first-time buyer or looking to get back into home ownership, you can save a lot of money in the long run compared to continued renting.

If you’re thinking about buying, talk to your trusted real estate professional and see if it’s the right time for you to make a move and what you’ll need to do to make it happen.

You Can Save for a Down Payment Faster Than You Think!

You Can Save for a Down Payment Faster Than You Think! | Simplifying The Market

 How to save for your down payment

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from the United States Census Bureau and Zillow, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Ohio can save for a down payment the quickest in just under 3 years (2.44). Below is a map that was created using the data for each state:

You Can Save for a Down Payment Faster Than You Think! | Simplifying The Market

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 5 or 10 years, but becomes possible in a year or two in many states as shown on the map below.

You Can Save for a Down Payment Faster Than You Think! | Simplifying The Market

Bottom Line

Whether you have just started to save for a down payment, or have been saving for years, you may be closer to your dream home than you think! Let’s meet up so I can help you evaluate your ability to buy today.

 Tuesday March 13th, 2018  Down PaymentsFirst Time Home BuyersFor Buyers