There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As Entrepreneur Magazine, a premier source for small business, explained this month in their article, “12 Practical Steps to Getting Rich”:
“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”
Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.
Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.23% last week.
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.
From Renting to Owning and how to Accelerate the Process
While renting a home might seem the easiest way to manage your finances, actually owning the property is much more beneficial. The initial outlay is going to be quite steep, but the guarantee of ROI over the years will help validate such a steep 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 question is, how do you get it done? Buyhome in Aurora
A tough scenario 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. In the next several years, rent appreciation rates will trump home appreciation rates. Buyhome in Bolingbrook
When buying becomes cheaper than renting
Jonathan Smoke of Realtor.com argues that housing is a core element of how well we live and what our levels of satisfaction are. 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. Buyhome in Naperville
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. Buyhome in Downers Grove
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 frustrated renters buying? Buyhome in Plainfield
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