The divide is here, it’s happening now.
Moving forward, every year you, a family member or colleague continues to rent it is costing you BIG in the long run. Okay, let’s gain a bit of perspective here. There are some instances where buying is not a good move or maybe just not feasible. Let’s explore.
Reasons to Buy NOW
The Federal Reserve reports the net worth of a homeowner is over 30X greater than a renter’s net worth.
February 2014, Trulia reports that buying is cheaper than renting in ALL of the 100 largest metros by an average of 38%.
Here is the rough one that many are experiencing on a day-to-day basis. Tampa Bay renters are spending an average of 50% of their total income on rent. Economists consider spending 30% of your total income on rent to be healthy. There is a reason investors came into the market the past couple of years and bought in bulk, this is it.
Homeowners are controlling the impact of inflation, gaining more net worth through appreciation and tax breaks over the long-term. Economists are all predicting an increase in interest over the next year by as much as a full percent if not more. Money is relatively cheap to get your hands on right now, if you qualify. And more buyers actually qualify than they give themselves credit for, talk to a lender today and find out. Look at the past, catch a glimpse of our future and make a plan today.
Taking all of this into consideration, when is it not a good time to buy real estate? When it’s not the right time for you. If you need to work on your credit or you are not planning on staying in one place more than 3 years, it’s a good idea to develop a plan of action. Taking into account, closing costs, commissions, appreciation, depreciation, renovation, taxes, etc. it’s advised to take a step back and look at the big picture – for YOU. What makes sense for you now and in the future.
Talk to a reputable Realtor®, lender and financial planning adviser to gain the perspective needed for your plan of action. Each of these professionals are licensed in different areas and initial consultations are generally free.
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By Christina Stramiello, PA
Broker: Robert Slack Fine Homes, LLC
3320 SW 33rd Rd, #100
Ocala, FL 34474