Ois­ing rents an­other rea­son to pur­chase a home now, oeal­tor says

Times Chronicle - - OBITUARIES -

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.

As a re­sult, when peo­ple JR RXW WR finG a VXLWaElH rHnWal, WhHy arH finGLnJ LW GLI­fiFXlW WR lRFaWH a hRPH WhaW meets their needs. If they do, it is of­ten quite costly anG Pay nRW fiW ZLWhLn WhHLr bud­get. It’s at this point that they think about pur­chas­ing a home in­stead.

“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.”

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