Did your landlord just give you the news that rents are going up again? If so, you are not alone – many renters are getting that notice that their rent is going up again, taking more and more of your monthly income. To make matters worse, every dollar that is spend on your rent is one less dollar going to your own savings, investments or building your own net worth. Maybe it’s time to look for your own starter home.
Compare your rent to a mortgage – have you ever thought about how much you pay in rent over 12 months, or 20-30 years? Think about this – if your rent is $1000/month, that’s $12,000 over one year. In 25 years, that’s $300,000! Maybe you can buy a home!
Many first time homebuyers are convinced they can’t afford to buy a home. That’s not true – there are many homes out there at different prices. There is a home that will work for you. Sometimes it’s more important to look at the location, schools, parks, etc than to look at the total cost. You are looking at a longer term than just the next 12 months. You want to find a home that you will grow in, maybe have children in and a house that they can call their home for many years. It’s a home that you are investing time and money in, but will also hopefully a home that will gain value in over the years.
Of course, there are some considerations that you will need to make as you start down the path to homeownership. The first is that your mortgage is unlikely to be your only monthly expense. You will also encounter property taxes, insurance, utility fees and if you buy a condominium or townhome, homeowners’ association fees. You will also be responsible for maintenance and upkeep since you own the home. But that also means that you are free to customize and renovate as you see fit. You can paint your home, you can decorate your home. You won’t have a landlord complaining about what you do inside your home.
Remeber that it is never too late to escape the rental trap. When you’re ready to start building your future by investing in your first home, contact your loan officer. If you don’t know a loan officer, please feel free to call me. I would be more than happy to share financing options that will suit your budget and help you get into your first home.