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Don't Get Caught in the Rental Trap!

January 22, 2018 | By Shane Roxburgh

Rents Are on the Rise: Don’t Get Caught in the Rental Trap!

Rents Are on the Rise: Don't Get Caught in the Rental Trap! | MyKCM

There are many benefits to homeownership. One of the top benefits is protecting yourself from rising rents, by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped 

A recent article by Apartment List addressed rising rents by stating:

“Rents are up 2.7% year-over-year at the national level. Year-over-year growth continues to fall between the 2.1% rate from this time last year and the 3.4% growth rate from October 2015.”

The article continues explaining that:

“Despite the seasonal slowdown, rents are still up year-over-year in 89 of the 100 Largest cities.

Additionally, the Urban Institute revealed that,

Over a quarter of renters, or 11.1 million households, are severely cost burdened, spending at least half their income on rental housing.

These households struggle to save for a rainy day and pay other bills, including groceries and healthcare.

It’s Cheaper to Buy Than Rent 

Homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers show that the range is an average of 6.5% less expensive in San Jose (CA), all the way up to 57% less expensive in Detroit (MI) and 37.4% nationwide!

Know Your Options

Perhaps you have already saved enough to buy your first home. A nationwide survey of about 24,000 renters found that 80% of millennial renters plan to eventually buy a house, but 72% cite affordability as their primary obstacle. Aside from affordability, one in three millennial renters have concerns about their credit scores, and another 53% said that a down payment is an obstacle.

Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream homes. A first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap that so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Let’s get together to determine if you can qualify for a mortgage now!

Shane Roxburgh

Shane Roxburgh's years of experience is vital to the day-to-day operations and overall success of the company. From liaising with our clients, investors, developers, builders and landowners. Shane identifies processes, strategies and marketing plans to create long term growth opportunities all long term relationships for all. Shane Roxburgh has created a real estate consulting company that provides overall approach to all your real estate needs, acting as "Your Utah Real Estate Group". "My success has been due to the integrity and the close client relationships I have built over the years. In today’s market, it is important to work with the best in the industry with the highest and utmost integrity to insure the best results."