The Federal Housing Administration (FHA) has announced the new loan limits for 2022 and they…
The question that most renters ask themself is: should they keep renting for another year or purchase a home? There are a number of benefits to homeownership however homeownership is not right for everyone based on their situation and/or future plans. There is nothing wrong with renting and there is a time to rent however after learning the 4 things that every renter needs to consider, one will realize that right now is not that time to rent.
There are a few things that every renter should think about before signing another lease for a year; rising rents, lost equity opportunity, customization and flexibility. Kevin Martini
Rents Are Rising Very Quickly
BREAKING NEWS! Rents have been increasing every year – perhaps not a ‘breaking news since increasing rents is not a new idea. With data from the Census data, it confirms rental prices have gone up consistently for decades as you can see from the Median Rent Since 1988 graphic below:
When you are a renter, the reality is rental payments continue to climb every year. In the most recent September Rental Report by realtor.com (NOTE: the most recent data at time or publication of this article), it highlights that rent prices are accelerating from August 2021 to September 2021 and it is forecasted to keep increasing. All type of rental on a national level saw a double-digit increase over 2020 (e.g. studio, one-bedroom, two-bedroom). According to the report, the U.S. median rental price increased 13.6% year over year and that is an impact of an additional $222 a month to a new record high.
Equity Gains Missed by Renters
A homeowner’s monthly mortgage payment pays for their shelter however it also acts as an investment.
When you rent it is just roof not an investment. Logan Martini
Over time, historically, home appreciate and the homeowner’s investment grows in the form of equity plus, as a homeowner makes their mortgage payment each month they pay down the principal on the home they own.
According to CoreLogic, a trusted source for real estate data, the average homeowner gained about $51,500 in equity in the past year. Renters did not get the same benefit. Essentially, renting last year cost $51,500 last year! When deciding whether you should rent or buy in the future , keep in mind how much rent can cost you.
Ability to Make Home YOUR Home
This is a big decision-making point if you want to be able to paint, renovate, make home upgrades or get a puppy. In almost every cases, your property owner or landlord determines what color your wall are and if you can have a pet. As a homeowner, your are in control and have the freedom to make your house a home.
Owning Provides Flexibility
Many choose to rent because you feel it provides greater flexibility if you need to move for any reason. It is important to note that terminating a lease can be expensive. There is no question that selling a home may take more time than simply writing a check for a lease termination however it is important to highlight how quickly houses are selling in today’s market.
The National Association of Realtors (NAR), the average home is only on the market for 17 days. This is much less than the typical 60-days notice many have to give a landlord. Simply put, this means you may have more flexibility than you think if you need to relocate as a homeowner.
MartiniMortgage.com Bottom Line
There is no question, deciding if it’s the right time for you to buy is a personal decision, and the timing is different for everyone however, you owe it to yourself to explore your options and to get the facts. If you’d like to learn more about the benefits of homeownership and the very unique mortgage programs offered by the Martini Group at Cardinal Financial Company, let’s connect so you can make a confident, informed decision and have a trusted advisor along the way.
NMLS 143962 | Certified Mortgage Advisor and Branch Manager | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgage.com | Kevin@KevinMartini.com | Equal Housing Opportunity
NMLS 1591485 | Senior Mortgage Strategist | Martini Group at Cardinal Financial Company, Limited Partnership, NMLS 66247 | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.LoganMartini.com | Logan@KevinMartini.com | Equal Housing Opportunity
What is the Martini Soft Second?
With the Martini Soft Second, which is offered exclusively by the Martini Group with Cardinal Financial Company a borrower receives a 30-year term, 0% interest rate (0% APR), no monthly payment second mortgage.
For more information about this very special program which is available for first-time homebuyers and repeat homebuyers call: (919) 238-4934