There are many benefits to home ownership.
One of the top ones is being able to protect yourself from rising rents by locking in your housing cost for the life of your mortgage. There are many families renting in Irvine, CA who may be wishing they could buy their first Irvine home. Check out these benefits of buying.
Don't Become Trapped
Joathan Smoke,Chief Economist at realtor. com, reported on what he called a "Rental Affordability Crisis." He warned 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 Report on Rental Housing, they reported that 49% of rental households are cost-burdened, meaning they spend more than 30% of their income on housing. 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)
If you have decided that you must rent for a while longer, I can help you find Irvine rentals.
Many first-time homebuyers who believe that they need a large down payment may be holding themselves back from their dream home. 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!
I recomend saving at least 10% of the purchase price of your new home, or get a family member to gift you enough money to get you to that 10% mark.
Let's get together to determine if you could qualify for a mortgage now! After a 60 to 90 minute Buyer Consultation with me, you might be surprised that your dream home is within your reach. And you'll leave my office knowing a lot about the Irvine market, the market trends, and the whole buying process.
Don't get caught in the trap so many renters are currently in. If you are ready and willing to buy a home in Irvine, meet with a real estate professional like me, to find out if you are able.