Currently renting and want to your own home? It may be a good time to think about your next move. With rent costs rising annually home ownership may be closer than you realize.
According to the 2018 Bank of America Home buyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.
Those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. 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. There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. 48% of renters surveyed spent more than that. With their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan. 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 revealed that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
The need to produce a 20% down payment is one of the biggest misconceptions of home-ownership, 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, contact a local real estate professional at Freedom First Properties who can help you on your path to home-ownership, (714) 949-9669.