Rising rents another reason to purchase a home now, Realtor says

Rental rates are quickly rising and available rental units are few and far between these days. The market has swung in favor of landlords, and renters have been left with higher rents, fewer options, and a lack of move-in incentives such as a month’s rent free and other concessions.

According to a rental index by willow, an online home and real estate marketplace, median rents rose 3 percent nationally from January 2011 to January 2012. At the same time, the number of renters has increased due to the economic and employment challenges of the past several years.

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“Affordable home prices and record-low mortgage rates have been the hallmark of the real estate marketplace for several years running,” said Jim Weichert, president and founder of Weichert, Realtors.

“Purchasing a home now makes even more sense than ever, given the steadily increasing expense of renting and the growing probability that home prices will soon be on the upswing.”

2YHr WhH lRnJ haXl, hRPHownership offers advantages that simply can’t be attained through renting. First, a home is much more than just a place to live. From putting down roots and creating memories to the ability to make whatever home improvements and decorating decisions you’d like, homeownership FHrWaLnly haV LWV EHnHfiWV.

In the current market, buying rather than renting also makes complete sense from a finanFLal VWanGpRLnW. 5LVing rents have made buying a home more afford- able than renting in many cases. In addition to a lower monthly payment compared to rent, homeowners who make their purchase while home prices remain lRZ ZLll lLNHly EHnHfiW IrRP home price appreciation.

When real estate values increase, this can provide buyers with thousands of dollars in additional personal equity that renters simply can’t capitalize on.

$nRWhHr EHnHfiW WR pXrchasing a home is the aELlLWy WR VHFXrH a fixHG monthly cost. While rents typically rise a few percent each year, individuals who purchase a home ZLWh a 30-yHar fixHG PRrWgage can count on having the same monthly payment over the course of the loan.

“With interest rates still at historic lows and home prices more affordable than in years past, this might be the best opportunity a renter has to realize their dream of homeownership,” Weichert said. “Those who can afford to buy now and wish to own a home down the road could cost themselves tens of thousands of dollars by continuing to rent because home prices and interest rates are expected to rise in the future.”