According to ATTOM Data Solutions’ 2017 Rental Affordability Report, homeownership is more affordable than renting in 354 of the 540 U.S. counties they analyzed.
In Pinellas County, an average of 29.3% of your income goes to ownership of a median-priced home whereas 37.7% goes to renting.
The report found that “making monthly house payments on a median-priced home — including mortgage, property taxes and insurance — is more affordable than the fair market rent on a three-bedroom property in 354 of the 540 counties analyzed in the report (66 percent).”
For the report, ATTOM Data Solutions compared recently released fair market rent data from the Department of Housing and Urban Development with reported income amounts from the Department of Labor and Statistics to determine the percentage of income that a family would have to spend on their monthly housing cost (rent or mortgage payments).
“While buying continues to be more affordable than renting in the majority of U.S. markets, that equation could change quickly if mortgage rates keep rising in 2017. In that scenario, renters who have not yet made the leap to homeownership will find it even more difficult to make that leap this year.”
Rents will continue to rise and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, please give us a call. We can help you determine if homeownership makes sense and lock in your monthly housing expense.
via KCM Crew
A survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is buying a home they consider the financial benefits of homeownership along with the social benefits.
The survey mentions things like:
*Paying rent does not make sense
*Homeownership provides a good financial opportunity
*Owning a home helps you building family wealth
*Buying a home is investing in your retirement
*Home equity gives you something to borrow against
So how did homeownership match up against other investments in 2015?
Here is a chart that compares its return on investment against precious metals and the stock market last year:
Not only did homeownership offer all its social benefits. It also was a great investment financially.
via The KCM Crew… Keeping Current Matters
Don’t let the fear of the unknown prevent you from buying a home and living the life of your dreams.
Originally posted by Steve Harney — Last week, I was talking to a young couple I know that was about to close on their first home. They were riding the wild rollercoaster of current mortgage rate swings and were not happy about the mortgage process overall. Yet, when the conversation shifted to finally living in a home that they own, their disposition changed dramatically.
A smile came across their faces as they talked about decorating their son’s bedroom and how much he will enjoy the backyard. They talked about inviting friends over for dinner and their family over for the holidays. The more they talked, the more excited they became.
I asked them if many of their friends were also buying. I was shocked to find out that they weren’t. Why not? Their friends believed that homeownership was financially unobtainable right now. Many wanted to own but didn’t think they could afford the monthly mortgage payment. They decided to rent instead.
I said that, with interest rates and prices where they are today, owning a home might not be any more expensive than renting one. The couple agreed but said their friends were afraid; afraid they might not qualify for a loan, afraid to handle negotiations with a seller, afraid of the home buying process itself.
People should not make decisions out of fear!
I’m not saying that every young person should own a home. I am saying that anyone that is qualified and wants to buy should not be afraid of the process. I realize the process may seem daunting but realize over 10,000 homes sell every day in this country. Sit down and discuss your goals with professionals from both the real estate and mortgage industries. Get the facts. Make an informed decision. Don’t let the fear of the unknown prevent you from living the life of your dreams.
Steve Harney is a residential real estate expert who specializes in market trends and authors a monthly informational presentation for top real estate professionals titled, “Keeping Current Matters” (KCM).