If you’re currently hiring and have dreams of owning your own home, it could be a good time to think about your next move. Along with rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize.
Based on the 2018 Bank of America Homebuyer Insights Review , 74% of renters plan on buying within the next 5 many years, and 38% are planning to buy within the next 2 years.
When individuals same renters were asked precisely why they disliked renting, 52% said rising rental costs were their top reason, and 42% of renters believe their rent will rise every year. The full results of the survey can be seen below: It’s no wonder rising rental costs came in as the top answer. The median asking rent price has increased steadily over the last 30 years, as you can see beneath. There is a long-standing rule that a household should not save money than 28% of its revenue on housing expenses. With nearly half of renters (48%) surveyed already spending more than that will, and with their rents likely to increase again, it’s never a bad idea in order to reconsider your family’s plan and ask yourself if renting is your greatest angle going forward. When asked why they haven’t purchased a home however, not having enough saved for a deposit (44%) came in as the top response. The report went on to reveal that nearly half of all participants 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 right 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 within today’s market, let’s get together to determine your path to homeownership.
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