Are you fed up with the consistent rise in rent? Have you ever thought of buying a home instead of paying someone else’s mortgage? What’s holding back could simply be your hesitation as you may be pleasantly surprised by what’s needed to purchase a home.
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying within the next 5 years, and 38% are planning to buy within the next 2 years.
It’s no wonder rising rental costs came in as the top answer. The median asking rent price has risen steadily over the last 30 years, as you can see below.
There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again, it’s never a bad idea to reconsider your family’s plan and ask yourself if renting is your best angle going forward. When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
The reality is, the need to produce a 20% down payment is one of the biggest misconceptions of homeownership, especially for first-time buyers. That means a large number of renters may be able to buy now, and they don’t even know it.
If you’re one of the many renters who are tired of rising rents but may be confused about what is required to buy in today’s market, contact a local real estate professional who can help you on your path to homeownership.
Reblogged from: http://bit.ly/333IMYk