Careful…Don’t Get Caught in the Rental Trap!

Careful…Don’t Get Caught in the Rental Trap! | Simplifying The Market

There are many benefits to homeownership. One of the top benefits is being able to protect yourself from rising rents by locking in your housing cost for the life of your mortgage.

Don’t Become Trapped 

Jonathan Smoke, Chief Economist at realtor.comreported on what he calls a “Rental Affordability Crisis.” He warns that,

“Low rental vacancies and a lack of new rental construction are pushing up rents, and we expect that they’ll outpace home price appreciation in the year ahead.”

In the Joint Center for Housing Studies at Harvard University’s 2016 State of the Nation’s Housing Report, they revealed that The number of cost-burdened households rose to 21.3 million. Even more troubling, the number with severe burdens (paying more than 50% of income for housing) jumped to a record 11.4 million. These households struggle to save for a rainy day and pay other bills, such as food and healthcare.

It’s Cheaper to Buy Than Rent 

In Smoke’s article, he went on to say,

“Housing is central to the health and well-being of our country and our local communities. In addition, this (rental affordability) crisis threatens the future value of owned housing, as the burdensome level of rents will trap more aspiring owners into a vicious financial cycle in which they cannot save and build a solid credit record to eventually buy a home.”

“While more than 85% of markets have burdensome rents today, it’s perplexing that in more than 75% of the counties across the country, it is actually cheaper to buy than rent a home. So why aren’t those unhappy renters choosing to buy?”

Know Your Options

Perhaps you have already saved enough to buy your first home. HousingWire reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment. 

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)

Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream home. As we have reported before, in many areas of the country, a first-time home buyer can save for a 3% down payment in less than two years. You may have already saved enough!

Bottom Line

Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Let’s get together to determine if you can qualify for a mortgage now!  Give me a call – J.P. Cook – 602-320-4253.

What’s Your Home Worth?

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2915 W Meadow Drive Phoenix, AZ 85053

$460,000
2 Beds
2 Baths
1,307 SqFt
Status Active
MLS # 6681118
Property Type Single Family Residence
Price Type --
Discover the ultimate haven for your entrepreneurial ambitions! This remarkable property presents a haven for business owners seeking ample space for trucks and equipment. A standout feature is the expansive 5-car garage accompanied by a colossal workshop, meticulously designed to accommodate your professional needs. Located proximate to the bustling arteries of I-17 and Bell Road, accessibility to the entirety of the valley is seamlessly facilitated, ensuring your business ventures thrive with unparalleled convenience. Step into the expansive garage, where the possibilities are endless. Whether you're a contractor, landscaper, or tradesperson, this space offers the ideal canvas for storing your fleet of vehicles and equipment securely. Imagine the ease of access as you navigate your trucks in and out, with ample room to maneuver and organize your tools for maximum efficiency. But the true crown jewel of this property lies within its vast workshop. Here, craftsmanship meets functionality in a space that is primed for productivity. With towering ceilings and an abundance of natural light, this workshop invites creativity and innovation to flourish. Whether you're tinkering with machinery, crafting custom pieces, or conducting repairs, this expansive area provides the perfect environment to bring your visions to life. Strategically positioned near the intersection of I-17 and Bell Road, this property offers unparalleled connectivity to key transportation routes. This strategic location not only streamlines your daily commute but also enhances the accessibility of your business to clients and suppliers across the valley. Say goodbye to lengthy travel times and hello to newfound efficiency as you navigate the thriving landscape of the local market. While the focus may be on the outbuildings, it's essential not to overlook the charm and comfort offered by the main residence. With its inviting ambiance and modern amenities, this home provides a sanctuary where you can recharge and rejuvenate after a day of hard work. From spacious living areas to a well-appointed kitchen, every detail has been thoughtfully crafted to ensure your utmost comfort and satisfaction. In conclusion, this property represents more than just a place to call home - it's a gateway to endless possibilities and boundless opportunities. With its unparalleled combination of practicality, convenience, and potential, it stands as a testament to the entrepreneurial spirit that thrives within us all. Don't miss your chance to make your mark in the heart of the valley.

9750 N Monterey Drive Fountain Hills, AZ 85268

$460,000
3 Beds
2 Baths
1,439 SqFt
Status Active
MLS # 6678169
Property Type Apartment
Price Type --
This immaculate home is waiting for you to move in and call it your own. The open floor plan of the great room with vaulted ceilings adds to the comfortable and classy atmosphere of this home. With 3 bedrooms and 2 full baths, this home provides a welcoming and spacious feel. The kitchen boasts Stainless appliances with plenty of counter space, perfect for preparing meals. Each bedroom offers access to a patio, making it easy to enjoy outdoor living space. Recent updates, such as the Master Bathroom, Air Conditioner 2021, Appliances, flooring, and Custom closets enhance the turnkey perfection of this exceptional property. The detached 1-car garage comes equipped with shelving for storage convenience. As part of the community, you can also take advantage of the heated pool and spa.

12845 W Aster Drive El Mirage, AZ 85335

$460,000
3 Beds
2 Baths
1,972 SqFt
Status Active
MLS # 6675957
Property Type Single Family Residence
Price Type --
Don't miss this beautifully maintained 3 bedroom, 2 bath home! As you enter you'll be greeted by an inviting foyer that leads to a spacious open floor plan filled with soaring vaulted ceilings, a trending palette, plantation shutters throughout, tile/wood-look flooring, a media niche, and a cozy fireplace. The large kitchen is equipped with ample cabinetry, recessed lighting, matching appliances, pantry, and a large center island with breakfast bar seating for added convenience. Oversized primary retreat with a private ensuite bathroom with dual vanities, a separate tub and shower, and a walk-in closet. The tranquil backyard lets you relax under the large covered patio. Perfect location - close to shopping, freeway access, and restaurants. Make this your dream home today

16520 W Flora Lane Surprise, AZ 85387

$460,000
2 Beds
2 Baths
1,930 SqFt
Status Active
MLS # 6677899
Property Type Single Family Residence
Price Type --
The Grand awaits! This Gorgeous Valencia II model has been meticulously cared for and shows true pride in ownership. This one-owner home is the definition of Turn-Key and shows beautifully, offering 2 bedrooms, 2 bathrooms, plus a Den/Office. Key features include a gated front courtyard with water feature, Brand New interior paint, tile all throughout, Solar Tubes, sliding cabinet shelves in the kitchen, Corian counters, kitchen island and breakfast bar, tile backsplash, hot water heater re-circulator for instant hot water, cabinets in Laundry and Garage, extended rear covered patio with added Pony wall and Fire pit, and so much more! This isn't just a home, it's a lifestyle of refined comfort. The Grand is one of the top Adult communities in the U.S. and features 4 18-Hole Championship Courses, Fitness Center, Day Spa, pickleball and tennis courts, multiple swimming pools, dog parks, a softball field and over 80 clubs and special interest groups, plus entertainment venues that feature local and international performers. Join The Grand.

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