If you’re currently renting and have dreams of owning your own home, it may be a good time to think about your next move. With rent costs rising annually and many helpful down payment assistance programs available, homeownership may be closer than you realize.

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.

When those same renters were asked why they disliked renting, 52% said rising rental costs were their top reason. The results of the survey can be seen here: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.

Bottom Line

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, let’s get together to determine your path to homeownership.

 Samuel Spinella                                                                                                                               Realtor                                                                                                                                                             SRES                                                                                                                                                                   Intero                                                                                                                                                   Sunnyvale CA                                                                                                                                             408-393-9294

As a professional in the real estate industry over the past twelve years, I’ve built my reputation on providing outstanding service to my clients. In these times of dynamic market movement, I believe the most important thing I can do is to communicate how the current market influences your ability to achieve your personal and financial goals. As a Realtor, I continually educate myself on market trends and real estate changes that create opportunity for my clients.

Sam

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