Rents are going up by 10% to 40%. Once again it will be less expensive to own than to rent. If you are paying $2500 a month in rent, you can buy a home in the $400,000 range and taking the tax savings into consideration, cash out of the pocket each month for those buyers is around $2500.
As more home go into foreclosure, those people will be looking to rent. Thats a huge number of families going from owning a home to having to rent. More demand, higher rents.
Many renters will be a position to purchase a home using FHA programs that still allow 100% financing. FHA loans are all about helping first time home buyers and giving people with some credit challenges a second chance.
Barry Bruns
Pacific Western Bancorp
925 474-8135
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