Is Renting Right for Me? You'll WANT to Read This!!

If you’re currently renting and have dreams of owning yourown home, it may be a good time to thinkabout your next move. With rent costs rising annually andmany helpful down payment assistance programs available,homeownership may be closer than you realize.

According to the 2018 Bank ofAmerica Homebuyer Insights Report, 74% of renters plan onbuying within the next 5 years, and 38% are planning to buy withinthe next 2 years.

When those same renters were asked why they disliked renting,52% said rising rental costs were their top reason. The results ofthe survey can be seen here:

It’s no wonder rising rental costs came in as the topanswer. The median asking rent price hasrisen steadily over the last 30 years, as you can see below.

There is a long-standing rule that a household should not spendmore than 28% of its income on housing expenses.With nearly half of renters (48%) surveyed already spending morethan that, and with their rents likely to rise again, it’snever a bad idea to reconsider your family’s plan and askyourself if renting is your best angle going forward. When askedwhy they haven’t purchased a home yet, not having enoughsaved for a down payment (44%) came in as the top response. Thereport went on to reveal that nearly half of all respondentsbelieve that “a 20% down payment is required to buya home.”

The reality is, the need to produce a 20% downpayment is one of the biggest misconceptions of homeownership,especially for first-time buyers. That means a large number ofrenters may be able to buy now, and they don’t even knowit.

Bottom Line

If you’re one of the many renters who are tired of risingrents but may be confused about what is required to buy intoday’s market, let’s get together to determine yourpath to homeownership.