Buying VERSUS Renting a Home
Firstly, If you’re currently renting and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize. Renting Versus Buying a Home may not be right for you.
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.
When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the survey can be seen here:
In addition, It’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years. Stated below is the median rent.
Above all, there is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. Nearly half of renters (48%) surveyed already spending more than that. Rents are likely to rise again and it’s never a bad idea to reconsider your family’s plan. You should ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment. (44%) Came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
Finally, the reality is, the need to produce a 20% down payment is one of the biggest misconceptions of homeownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.
If you’re one of the many renters who are tired of rising rents but may be confused about what is required to buy in today’s market, let’s get together to determine your path to home ownership. Finally contact us for more information. RE/MAX 365 at 908-923-4538 or Visit www.SearchAllNJhomes.com