Renting a Southern Maryland home might seem like the easiest way to manage your finances, but owning a property is much more beneficial. The initial outlay will be quite steep, but the guarantee of return on investment (ROI) over the years help to validate this steep investment. As a renter, you pay bills that do not contribute to ownership in any way, shape, or form. When you live in a place you own, you lock in expenses related to housing and set yourself up for a comfortable future over time.
The big question is, though, how do you get it done?
A tough scenario for renters
Experts have recently pointed out the development of what some call “the rent affordability crisis.” This is essentially a situation where there are fewer vacancies than there are renters available. This is compounded by the fact that developers are building fewer rental properties than they used to. This creates a rising demand and a scramble among renters for the available properties out there. Increased demand coupled with reduced availability will result in an increase in rents over time. In the next several years, rent appreciation rates will trump home appreciation rates.
When buying becomes cheaper than renting
Jonathan Smoke of Realtor.com argues that housing is one of the core elements of how well we live and what our levels of satisfaction are. That is, having a home impacts your general state of well being. Home ownership correlates positively with outlook and quality of life. As the cost of rent increases each year, those who dream of owning a Southern Maryland home one day may end up trapped in a difficult position.
While you choose to rent, you minimize your possible contribution to a long-term investment. You’ll encounter minimal opportunity for saving money to buy a home of your own.
Currently, 85 percent of American renters say they have a “huge rent bill.” What’s more interesting is that people in more than 75 percent of the country can buy at an overall cheaper rate than they can rent. Why aren’t these frustrated renters buying?
What options do you have?
There’s a lack of information in the current market about just how much you need for a down payment. When you take the time to look at the factors that allow individuals to purchase a Southern Maryland home, you’ll realize that there are a lot more people who are actually qualified to buy a home. They just don’t know it!
For example, the idea of a down payment might prevent someone from looking into buying a home. Most people don’t know what size down payment is required to actually own a home. According to recent statistics, it is actually very easy to save up the 3 percent required in most areas. Under a structured and disciplined savings plan, most people can accomplish this in two years. Have you saved enough for your next home without even knowing it?
Saving for your next home may not be as hard as you think. Identifying a good mortgage plan is stressful for all of us, but when you know what to look for, things can turn out smoother than you expected. Think about your own income, and draw up your plan based on that number and what percentage of that you can set aside. Remember that the percentage you need to put down typically vary across the board, depending on your approach and the type of mortgage you’re looking for.
Don’t allow rising rents to postpone your plan to buy a Southern Maryland home. If you’re finding the research difficult, talk to an experienced Southern Maryland agent and ask them for help. Real estate agents can help you make sense of the rates available in your market as well as offer you first-hand experience relating to the way things may turn out for you. Always be on the lookout for attractive deals, and make your move at the right time – with the right information.
White Plains MD Homes for Sale and Real Estate Services in Southern Maryland. You now have a search engine to help you with your Southern Maryland home search! And I’m ready to provide you with a custom home valuation if you’re considering selling your home. Let’s connect to discuss how I can help you. Contact Kimberly Bean at 301-440-1309
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