If you are currently renting you are, in actuality, a buyer. The thing is, you are just buying a home for someone else.
If low rates aren’t enough to persuade you to invest in real estate, record high rent payments might be. In a recent article posted by Yahoo “American renters spend an average of about 30% of their monthly income on rent . . . but throughout the country, many people spend much more than that. That’s an indication of a rent affordability problem in the U.S., given that housing experts consider consumers to be ‘rent-burdened’ if they pay more than 30% of their income for housing”
In another recent study, “In some areas, particularly in the south, it’s over 50% cheaper to buy.”
Let’s look at the numbers, consider this example from the North Carolina FHA: “If you were to pay $1,550 per month, for example, and the average rental payment increase was 4%, you would pay $100,743.60 in a 5 year period toward rent. If you purchased a home and borrowed $205,000 with a 3.75% interest rate (4.05% APR), and you paid $900 every year for maintenance, you would pay approximately $77,838.22 in a 5 year period toward mortgage.
If you’re ready to build your own equity and see the value in doing so, call us at the Rachel Kendall Team. Together we will formulate a plan for your future, and your home ownership.