This weeks Homebuyer Tip from Catherine Mitchell, The Intentional Realtor®™

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

Since 2010 average rent rose 15% - while renter income grew 11%

Have you noticed? There’s a growing trend in our society where the cost of rent is rising considerably faster than our income.  Simply put, our pockets just can’t keep-up with the rising cost of rents. Not to mention, there’s a widespread belief that you should only spend about 30% of your monthly income on housing.  However, nowadays people are spending up to 50% of their monthly income just to keep a roof over their heads.  It’s disturbing, yet true. 

Since 2010 average rent has risen 15%

Blame it on our economy, but for some purchasing a home has become much more difficult, so as a result more people are becoming long term renters.  What we are starting to see is a trend where rental households are now on the increase and homeownership is on the decline. When housing prices fell after the mortgage crisis, investors bought properties for cheap with the notion to rent them out, therefore flooding the market with an abundance of rental properties. Now because of this competition from these large investors, potential homebuyers are finding it much more difficult to purchase a home because inventory is tight.

Renter income has grown only 11%

Standing alone, an 11% increase in income is a strong number. For income to grow less than housing costs is not favorable.  We are seeing commercials on TV now with mortgage holders in stockades and renters dancing because they are free.  In reality, those happy renters have a net worth that is slipping steadily backwards. Since their rent is increasing more than their income, it is inevitable that they will rely more and more on credit to maintain their lifestyle.   Meanwhile, the mortgage holder enjoys a fixed expense for housing costs and presumably lives in an appreciating asset, both of which contribute positively to net worth. 

Cause and Effect

The gap between rental cost and household income could grow if rental housing remains in demand. In addition to the renters being free, the landlords are also free to raise rents as the market demands increase.  If the general population views renting as a long term housing solution, the reliance on credit is very likely to grow. If the population sees renting as a short term solution, with home buying as the long term plan, net worth will most likely increase.  I believe that net worth is the better choice!

Connect with Catherine:

As The Intentional Realtor®™, I will work hard to find the perfect home for you that is within your budget so your renting days can remain short term, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams.  

For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine

This Week's Homebuyer Tip From Catherine Mitchell, The Intentional Realtor®™

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

“Owning a home can be 44% less expensive - than paying rent in many markets”

It’s no secret that there are many advantages to owning your own home. You can also decorate it to your liking, from painting walls, to expanding or simply adding an additional room.  Pets are always welcomed too, with no landlord to restrict what your heart desires. And in most cases, owning a home can be less expensive than paying rent.

Owning a home can be 44% less expensive:

Buying is the smart choice. When you buy a home you’re building equity, creating lasting wealth, and increasing your net worth.  There are also tax benefits that come with owning your own home in the form of a mortgage interest deduction.  Also depending on how well you maintain your property, it has the ability to appreciate, (grow in value), which is a huge benefit; should you ever decide to sell.

Rent costs on the rise:

Rent is on the rise, and in many cases will increase every time you decide to renew your lease.  However, in a mortgage loan, you’re locked into the same monthly payment for the duration of the loan, be it fifteen or thirty years; with no worries of it ever increasing.  In-fact, a person with excellent credit may qualify for a low interest rate loan which in turn has the benefit of making your monthly payments less expensive.  Also, mortgage payments have the ability to stop in time, while paying rent can last forever.

You have options:

Why put up with the worries of a potential monthly or yearly increases in rent when you can make the same consistent and in many cases lower payments every month through home ownership?  It simply makes sense to live with the comfort of knowing that the home you live in is yours.  You’re the landlord and can paint that room if you want as well! Life’s amenities are just waiting for you in your very own home.

Connect with Catherine:

As the The Intentional Realtor®™, my job is to make sure that you eventually feel the pride of being a home owner, which is why securing a good Realtor® is in your best interest to help you get the home of your dreams. 

  

For this and more real estate needs by the The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine

Another Homebuyer Tip from Catherine Mitchell, The Intentional Realtor®™

Homebuyer Tips

From Catherine Mitchell, The Intentional Realtor®™,

“Give careful consideration to your options – and clearly define your goals”

Buying a home is a process. At times it can be enjoyable and fulfilling. However, there are times when it can be painstakingly stressful.  That is why it’s utterly important to define your goals and consider all of your options when you’re planning to purchase a home. 

Give careful consideration to your options:

As the The Intentional Realtor®™, I will take the time to sit down with you and explain the process that we are about to undertake.  We’ll target homes that lie within your price range, being careful not to go over budget.  We’ll talk about your needs and wants, writing down exactly what you’re looking for in a home so that we can have a good idea of what we are looking for in our search. 

Once we’ve done our research, we’ll compile a list of potential homes that we’ll visit, in order to confirm it’s suitable for your needs.  With this strategy, we’ll find a precious jewel of a home that you’ll fall in love with and be more than willing to call your very own.

Clearly define your goals:

Be specific with what you’re looking for in a home.  Whether it’s a big backyard, a fenced in pool, a big kitchen, or lots of closet space, having a clear definition as to what you want in a home makes the whole home buying process so much easier.  It’s when you, as a potential homebuyer, are unsure as to exactly what you want in a home that the process can become challenging.

Unnecessary Stresses:

A lack of planning and a lack of clearly defined goals when searching for a home will almost certainly lead to unnecessary stresses.  This is where a seasoned Realtor® like myself, The Intentional Realtor®™ comes in and takes complete charge of the situation. I will help to keep you focused on the goal at hand, which is to find you the home of your dreams! Being a well-versed Real Estate professional, I am accustomed to a myriad of challenges that can arise during this process. My goal is to absorb and minimize those stresses so that you can enjoy your home buying experience completely unaffected.

Connect with Catherine:

As The Intentional Realtor®™, whatever challenges we may face, just remember that it’s all part of the home buying process, so securing a good Realtor® is in your best interest to help you find, and buy, the home of your dreams.  

For this and more real estate needs by The Intentional Realtor®™, connect with me, Catherine Mitchell, at (704) 898-0605 http://www.catherinemitchellrealty.com/

#connectwithcatherine